Professional Documents
Culture Documents
Market Scenario
Its a battle of Products, Categories, Brands. Every product category is getting divided further into new categories.
Category Pizza
Its Pizza Hut v/s Dominos v/s Smokin Joes v/s Papa Johns
Category Motorbikes
Hero Honda v/s Bajaj v/s TVS v/s Yamaha v/s Honda v/s Suzuki
Category 4 Wheelers.
Maruti Suzuki v/s Hyundai v/s Tata Motors v/s General Motors v/s Ford v/s Skoda v/s Mahindra v/s Mercedes Benz v/s Volkswagen v/s Nissan v/s Fiat.. Too much really.
THEREFORE..
Managing Sales has become a complicated function. Sales has become too challenging and an uphill task.
Sales Planning
Planning is deciding on WHAT are we going to do? WHEN are we going to do? WHERE are we going to do? WHO is going to do? WHY will it be done? AND HOW will it be done?
Observation Successful companies do a lot of planning and outperform their rivals and also their own past performance.
Strategic Planning
These are the decisions about companys lond term objectives and strategies. Sales planning occurs at various levels in the company. Multi-product, Multi-business cos plan at 03 levels..1)Corporate plan 2) SBU plan and 3) Product functional plan.
LEVELS OF PLANNING
Corporate Planning : Long term planning Div./SBU Planning : Long term planning Functional Planning : Operational, short term.
Step 2 contd
6)Current product and marketing mix.
7)Competitors analysis: Their strategy, current performance, SWOT analysis and their future plans.
Step 2 contd..
1) 2) 3) 4) 5) EXTERNAL ENVIRONMENT, Economic environment, Demographic environment, Political environment, Technological environment Cultural environment
Internal Environment
1) 2) 3) 4) 5) Employees, Product Mix Channel Partners Suppliers Vendors
Description of Strategies,
Strategies with respect to, Target Market Marketing Mix Positioning Market research Network management CRM and MIS
ACTION PLAN
Identification of weak markets Identification of strong markets Identification of focus markets Identification of focus segments Identification of strong dealers Identification of strong dealers Market coverage, Sales promotion and budgets
Sales Forecasting
Why it is needed? To plan and achieve and forecasted sales EFFECTIVE, without firefighting. On the basis of Sales forecast other dept,s plan their activities. e.g. Production plan, finance planning, Human resource planning..
Forecast contd.
Time specific, Long Term sales, Medium term sales Short term sales
Forecast contd..
1. 2. 3. 4. Area specific, Global sales National sales( country specific) Regional sales( north/south) Territory sales( district level)
It is the best possible estimated sales of a given product in a given market for a specific time.
Market forecast.
It is the expected industry sales of a given product at one specific level of industry marketing expenditure, in a given market, for a specific period of time. It is also called as Market size.
Forecast contd..
Company Sales Potential.. Sales potential is defined as maximum share of market potential that is expected to be achieved by a company.
Forecast contd..
Company sales forecast, It is the estimated company sales volumes in units or service under a proposed marketing plan, in a given market for a specific period of time.
Forecast contd..
Sales budget, It is the estimate of expected sales volume in units or revenues from companys products and services and the selling expenses.
In this method the Sales head breaks down the company sales forecast into region, district, territory, sales officer.
Bottom-up/Build-up approach
This starts with the companys area office to estimate the sales in their respective territories. Each Area manager adds the forecast received from the sales team, modifies the same and sends it to the Regional manager.
Sales forecasting
Important Review areas.. 1) Industry details, Category- wise. 2)Target v/s Actual. 3)% growth over previous year. 4) Variance analysis of Major towns and contributing reasons.
Based on Review,
Planning or forecasting is made. Plan includes, 1) Segment-wise ,Town-wise, Officer-wise, Dealer-wise projections. i.e. Targets. Volumes and Market share. 2) Growth over previous year.
Performance Measurement.
Why it is needed? 1)To identify salespersons weak areas and improve. 2)To decide increment in pay based on performance. 3)To identify future Managers. (promotions) 4)To identify training needs. 5)To identify weak salespeople.
Measures of Performance.
1) 2) 3) 4) 5) 6) Target v/s Achieved performance. Growth achieved over last FY. Sales revenue generated. Market Coverage Channel coverage and management. MIS( Reports)
Qualitative Measurement.
Selling Skills, 1)Developing rapport. 2)Presentation skills. 3)Use of Sales tools. 4)Ability to overcome objections. 5)Ability to implement company plans. 6) Ability to close sales.
Considerations
Set realistic targets. Understand problems. Ensure sales team understands targets. Involvement of sales team in target setting. Continuous feedback. Flexibility.
Sales Organization.
What is it and why it is needed?
1) Defines job relationships among people. 2) Defines reporting pattern. 3) Makes people perform with clarity, efficiency and effectiveness.
Zonal Manager
Zonal Manager
Zonal Manager
Zonal Manager
Area Manager
Area Manager
Area Manager
Area Manager
Sales Officer
Sales Officer
Sales Officer
Sales Officer
Zonal Managers
Area Managers
GM (Sales)
ZSM/ASM
Sales Officer.
Geographical Structure.
V.P.(Sales)
G.M.(Sales)
Geographic Structure
This structure helps in better market coverage. Better sales force control is possible. Sales people can be held accountable as they are responsible for a specific territory. Quick response and customer service can be possible as the salespeople are in the field/market.
Product Spl.
This structure offers focused attention on each product group/division. Overall growth can be possible in this structure. Product heads can design a better marketing strategy and can react to market needs quickly.
1) Planning
Is establishing responsibilities. Is deciding on roles and responsibilities. Who will do what in the various stages and activities of staffing. During the entire process co-ordination between Sales dept., and HRD is absolutely necessary.
Planning
1) 2) 3) Number of Salespeople needed. Decide on optimum sales force size. Consider the no. of promotions. Consider the no. of transfers and retirements. 4) Consider terminations.
Planning.
Type of Salespeople required. 1) Conduct job analysis: Analysis of environment in which salespeople are going to work. What type of customers is he going to meet? Level of competition. Knowledge and skills required for the job.
Planning
2) Prepare job description: Title of the job.( sales officer, supervisor, GM.) Reporting relationship. Products salesperson is going to sell. Types of customers he would be meeting. Job demands and expectations. Posting location and area to be covered. Technical requirements.
2) Recruiting
Identification of sources for recruitment. Internal sources: Thru employee referral programs. Vacancies created by promotions and transfers. External sources: Advertisements. Internet. Campus interviews. Employment agencies. Competitors.
3) Selecting
Ref.Check
Med.exam.
Testing
Int.intw.
In.Intw. Appl.Bank.
Screening
4) Hiring
After the candidate is short listed co. makes a job offer to him. After the acceptance of job offer by the candidate a letter of appointment is given to him.
Training of Salespeople.
Sales training.
To improve the salespersons product knowledge. To improve his selling skills. To introduce him to new selling techniques. Special training programs for higher managers like stress management, crisis management, strategic thinking etc.
Sales Training
How are training needs identified? Thru Sales managers observations. Performance testing. Sales-force audit. Routine/refreshers programs.
Opening
Follow Up.
Closing Sales
Nego.
1) Opening
Important points: Personal Appearance. Self introduction. Opening remarks Common mistake, How can I help you? Customer: No, I am just looking. ADOPT TO THE SITUATION.
2) Need Identification
QUESTION AND LISTEN POSTURE. Salespeople should avoid the temptation of making a sales presentation without finding out the customers needs and wants.
Salesperson should remember that Customers buy benefits and not features
Advantages of a demonstration.
It is a useful ancillary in selling. Customer objections can be overcome easily. Selling becomes more realistic. Salesperson gets a chance to interact and know the customer, which might help in relationship development.
5) Negotiations.
Where can customers negotiate? Price. Credit facility. Delivery time. Schemes and offers.
6) Closing of sale
The most important part of selling process is asking for an order from the customer The entire selling effort will otherwise go waste, because ultimately selling is important.
7) Follow- up
This is an important step because it can help in building a long term relationship with the customer. Salesperson can ask about the product performance, service offered to him, his buying experience, service reminders and more importantly customer refferals.