SALES MANAGEMENT

Sales managers direct organizations' sales teams. They set sales goals, analyze data, and develop training programs for organizations’ sales representatives.

Sales managers typically do the following:

  • Resolve customer complaints regarding sales and service
  • Prepare budgets and approve expenditures
  • Monitor customer preferences to determine the focus of sales efforts
  • Analyse sales statistics
  • Project sales and determine the profitability of products and services
  • Determine discount rates or special pricing plans
  • Develop plans to acquire new customers or clients, through direct sales techniques, cold calling, and business-to-business marketing visits
  • Assign sales territories and set sales quotas
  • Plan and coordinate training programs for sales staff

Sales managers’ responsibilities vary with the size of the organization they work for. However, most sales managers direct the distribution of goods and services by assigning sales territories, setting sales goals, and establishing training programs for the organization’s sales representatives. Some sales managers recruit, hire, and train new members of the sales staff.

Sales managers advise sales representatives on ways to improve their sales performance. In large multiproduct organizations, they oversee regional and local sales managers and their staffs.

Sales managers also stay in contact with dealers and distributors. They analyze sales statistics that their staff gathers, both to determine the sales potential and inventory requirements of products and stores and to monitor customers' preferences.

Sales managers work closely with managers from other departments. For example, the marketing department identifies new customers that the sales department can target. The relationship between these two departments is critical to helping an organization expand its client base. Because sales managers monitor customers’ preferences and stores’ and organizations’ inventory needs, they work closely with research and design departments and warehousing departments.

MOTIVATING THE SALES FORCE STAFF

Motivation to the sales staff is vital to gain the best results for any organisation, and to provide its sales people with a meaningful job. This calls for a good understanding of motivation theories on the part of the sales manager. To motivate a sales force , the sales manager needs to understand not only what motivates the people but also what demotivates them. Money is not the only motivator. Indeed a person can be motivated by money up to a particular level. For example, if a sales person believes that after getting a $1,000.00 commission every month he will be well off, he will set his sales goal at the level of sales that yield a $1,000.00 commission. He will not work to achieve a sales level greater than that which results in $1,000.00.

In designing a motivation scheme, the sales manager can consider Herzberg two factor theory. The theory states that managers should eliminate demotivation such as poor pay, poor working conditions, bad company policy and poor interpersonal relations and poor supervision. At the same time they must design jobs which contain motivations such as recognition, responsibility, achievement and advancement. The manager according to Herzberg must eliminate dissatifiers and create conditions for motivation.

Rewarding the sales force.

There are four main methods of rewarding the sales force as follows:-

  1. Straight salary - a fixed amount of payment is made every month irrespective of the volume of sales. The advantage is that it gives the sales person a stable income. However, there is no incentive to make a greater effort on the part of the person.
  2. Straight commission - this compensation plan involve paying a sales person a variable amount that is based on performance. This method produces the highest level of sales because income is derived purely from sales. The disadvantage ii that it does not guarantee stable income to the sales person as the sales person must sale in order to survive.
  3. Salary plus bonus – Apart from a salary a bonus is made to the sales person as a reward for the good work. The bonus part motivates the sales person superior performance effort. However, the bonus is not as motivating as a commission pay.
  4. Salary plus commission – this method combines a fixed amount ie a salary and a variable amount, a commission..

Advantages

  1. The salary part of the ……. Guarantees the sales person stable income.
  2. The commission part of the package acts an incentive to the sales person to motivate him to the superior performance.
  3. This is probably the best method for the sales person as it guarantees survival both in sunny and rainy days.

Disadvantage

  1. It may be costly and burdensome for the bank.

Ii.Even if the salesperson does not sell the bank will have to pay him.

ROLE OF TRAINING

Sales training programs satisfy the following goals:

1. Sales representatives need to know and identify with the company.

2. Sales persons have to know the company’s products

3. Sales representatives need to know customers’ and competitors’ characteristics

4. Sales parsons have to trained in effective presentations and interaction with customers

5. Sales force has to know the field procedures and responsibilities.

6. Training in ethical decision making

Sales Skills

For new or aspiring owner-managers with no previous sales experience, the most daunting prospect is that of having to sell their goods or services. Sales skills have to be learnt and practised if they are to achieve good results on a regular basis. The biggest mistake that most new sales people make is to try to push and sell to the client the range of products in their portfolio, whereas someone with more experience will listen carefully to the client, and probe to identify their specific problems and needs. Only then are the products revealed, and in such a way that they offer potential solutions to the customer’s needs. In the 1980s, when Dexion was the world leader in materials handling, their new sales people were instructed “to sell solutions to problems and benefits to the customer, not storage and materials handling systems”. It is important to sell on quality and benefits rather than on Developing the Marketing Plan

SOME BASIC TECHNIQUES OF SELLING

The following list of tips will help less experienced entrepreneurs or new business owners to develop their personal sales skills and their ability to engage customers successfully.

BEFORE THE SALES MEETING.

• Rehearse your sales pitch so that you can deliver it fluently. It often pays to have what the Americans call an “elevator pitch” – a succinct summary of your business or products that can be described in the time it takes for a lift to get from the ground floor to the tenth floor of a building.

• Research the target company – make sure that you understand what they do and the markets in which they operate; or with the public sector, the services they provide and the clients who use those services.

• Find the decision-maker(s) and get contact names and titles. This can often be achieved by searching the company website or by a cold telephone call.

• Arrange an appointment with the right person (decision-maker or key influencer) – with adequate time to talk.

• Plan what you want to achieve from the meeting before you arrive, but be aware that those objectives may well change during the meeting, or may not be achieved in just one visit.

• Have suitable information/literature/ website information available so that you can provide it if asked.

THE MEETING ITSELF

• Dress appropriately for the type of organisation you are visiting and the seniority of the person you are meeting. Casual wear may be fine for an informal meeting in a social setting but not when presenting to a board of directors, even if they themselves are informally dressed.

• Arrive early – not just to avoid the stress or risk of being late, but to allow time for exploratory conversations with reception staff, or to examine the visitor book to see if any competitors have been visiting and whom they have met.

Developing the Marketing Plan

• Introductions – take note of who is present and their roles. Be wary if their roles are not explained at first as they may be the real decision-makers.

• Briefly outline what you are offering and why it will interest the potential customer (the elevator pitch), then promptly ask the customer a question about their business – get them talking as soon as possible.

• Listen out and probe for any problems or difficulties the customer is having: you may be able to sell them a solution, so look for ways in which your offering will solve those problems.

• Avoid technical data unless the customer specifically asks for it – you can leave technical specifications with them at the end of the meeting.

• Check to ensure that you have answered all of the customer’s questions; remember that if the customer’s response is: “Just put some information in the post”, this often indicates that the sales opportunity has passed.

CLOSING THE DEAL.

• Sell your product on benefits and solutions – emphasis quality and value for money, not price.

• Check that the benefits and solutions you’ve outlined meet the customer’s need.

• Ask the customer if he/she agrees that your offering can provide what is needed, and check that he/she has no doubts or reservations about this.

• Talk about costs and delivery times – but don’t mention discounts.

• Most importantly, ask the customer for the order.

• If the customer declines, ask why.

• If the customer places the order, you can discuss costs and delivery arrangements.

• At the end of the meeting, thank the customer for the order and for taking time to see you.

• After the meeting, confirm details of the order and/or respond to any queries as soon as possible.

Many people who are new to sales find it hard or embarrassing to close the deal, or to actually ask the client for an order. In fact, some buyers will make a point of waiting to be asked before committing themselves, particularly with young or new sales people. If you are uncomfortable about asking outright for an order – “Can I take your order today?” – then try: “When can I expect to receive our order?” or “When would you like us to deliver?” Another approach is to ask the question: “Can you see any reason why our products will not meet your needs?” If a reason is given, then you have an open opportunity to answer and overcome it. If the client has no objections, then you have a direct lead in to asking for the order.

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