Tuesday, February 3, 2009

Personal selling objectives-2

We are talking sales force automation in this blog. We talked different tools and different aspect of SFA or Insurance SFA. Today we continue our talk on personal selling objectives

1. Distribution policies (who to sell): The component policies related to distribution are:
- Channel design and channel types.
- Channel remuneration, motivation and training.
- Channel principal relations.
- Channel costs.

2. Pricing policies:
- Policy on pricing relative to the competition such as, setting the price of product to meet the competition, pricing above the competition, pricing under the competition.
- Policy on pricing relative to costs. Full cost pricing, promotion pricing, contribution pricing.
- Policy on uniformity of prices to different buyers.
- Policy on list pricing
- Policy on discounts; trade discounts, quantity discounts

Structuring the sales force
Organizations usually structure their sales force on a territory basis or on a product/product line basis. In the case of territory based structuring, the same salesman handles all the products or product lines of the firm in given territory, which will be compact. Now day’s territory basis sales are not much important for those who are doing online business. For example, a Life insurance quotes online company, who is providing Instant life insurance rates; there is no territory basis for them. They are doing business of any territory. In the case of product based structuring, several salesman of the firm operate in a given territory, each handling different products of the firm. Here the sales territories will be relatively larger. Sometimes the sales force is also structured based on customer type or customer class, in yet other case sales force is structured on a complex basis, involves a combination of the types mentioned above.

Saturday, January 31, 2009

Personal selling objectives-1

Quantitative objectives:

1) To capture and retain a certain market share
2) To obtain sales volume in ways that contribute to profitability
3) To obtain some number of new accounts of given types
4) To keep personal selling expenses with in set limits
5) To secure targeted percentage of certain accounts business.

Formulating sales policies
Formulating sales policies is nothing but the policies related to marketing. These sales related marketing policies delineate the guide lines within which the effort to reach personal selling objectives is made. There are three major types:

1. Product policies (what to sell): The component policies related to product is
- Which product should find a place in the product line?
- Whether some of the existing products are to be dropped?
- Whether any new products are to be added?
- Whether product design or product quality needs to be changed.
- What models. Type, size, colours and packing are to be sold.
- How product service is to be provided.
- What kinds of product guarantees are to be given?

Tuesday, January 27, 2009

Personal selling objectives

Marketing management in consultation with sales management determines personnel selling’s exact role in the promotional program. Usually the marketing planning group sets personal selling objectives, determines sales related marketing policies, formulates personal selling strategies and finalizes the sales budget. For example, online blinds company who are selling vertical blinds and roman shades products, personal selling objectives are not much important part compare to retail business.

Types of personal selling objectives: Selling objectives broadly classified into two categories they are-qualitative objectives and quantitative objectives.

Qualitative objectives:
a) To do the entire selling job.
b) To service existing accounts.
c) To search out and obtain new customers.
d) To secure and maintain customers co-operation in stocking and promoting the product line.
e) To keep customers informed on changes on the product line and other aspects of marketing strategy. For example newsletter is best way to keep the customers inform for an online blinds business company.
f) To assist customers in selling the product line.
g) To provide technical advice and assistance to customers.
h) To assists with the training and middlemen’s sales personnel.
i) To provide advice and assistance to middlemen on management problems.To collect and report market information of interest and use to company management

Monday, January 19, 2009

Errands involved in sales management

Following are the important errands involved in the successful management of the sales in the organizations:
a) Setting personal selling objectives.
b) Formulating sales policies
c) Structuring the sales force
d) Deciding the size of the sales force
e) Designing sales territories
f) Developing the sales forecasts and sales budgets
e) Designing sales territories
f) Developing the sales forecasts and sales budgets
g) Fixing sales quotas/targets for individual sales territories/salesman
h) Creating the sales force:
1. Recruitment
2. Selection
3. Induction/orientation

i) Managing the sales force
1. Compensation
2. Motivation
3. Morale building
4. Sales coaching/supervision
5. Evaluation/appraisal
6. Training and development

j) Managing the marketing channels
k) Ensuring growth and developing new accounts
l) Sales communication and reporting
m) Sales coordination and sales controlling including sales expense control
n) Building the sales organization
o) Co-ordination with marketing management in the areas like, product mix, pricing, distribution, advertising and sales promotion
p) Creating and maintaining right image for the company and its products in the market

Friday, January 16, 2009

Objectives of sales management

Today we are going to discuss on sales management objectives. Sales managers is modern organization are required to be customer-oriented and profit-directed and perform several tasks besides setting and achieving personal selling goals of the firm. From the company view point the sales management has the following three broad and important objectives namely:

· Sales volume
· Contribution to profits
· Continuing growth.

Difference between sales management, personal selling, salesmanship

Before understanding sales management thoroughly let be clear about some of the terminologies often used in sales management.

Sales management directs the personal selling efforts, which in turn is implemented largely through salesmanship. For example instant term life insurance rates company having many different life insurance quotes online options with them. Sales management directs all different marketing option to be planed and organize to achieve profits and more customers.

Personal selling is a broader concept than salesmanship, personal selling is the art of successfully persuading prospects or customers to buy a product or services from which they can derive suitable benefits, thereby increasing their total satisfaction. A window treatment company who are selling vertical blinds, roman shades and other types of blinds online, their individual agents who are selling their products to different architects and interior designer. Such sells consider as personal selling.

Salesmanship, then, is seller-initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favor of the seller’s product or service. For example in business meeting a salesman from motels in California is explain their different California motels specifications to customers. This type of selling is consider as salesmanship.

Monday, January 12, 2009

Sales Management

Sales management is a sub-system of marketing management. It is sales management that translates the marketing plan into marketing performance. That is why sales management is sometimes described as the muscle behind the marketing management. Actually sales management does much more than serving as the muscle behind marketing management. Sales managers is modern organization are required to be customer-oriented and profit-directed and perform several tasks besides setting and achieving personal selling goals of the firm. In this unit let us understand briefly the sales management, tasks involved in the sales management etc.

Sales management originally reffered exclusively to the direction of the sales force. Later the term took on broader significance-in addition to the management of personal selling.

Sales management meant of all marketing activities, including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.

According to the definition committee of the American marketing association sales management meant “The planning, direction, and control of personal selling including recruiting, selecting equipping, assigning, routing, supervising, paying, and motivating as these tasks apply to the personal sales force”.

Friday, January 9, 2009

Advertising Management-1

The term advertising originates from the Latin word ‘adverto’ means to turn around. Thus advertising denotes the means employed to draw attention of any object or purpose. Like we show big hoardings of blinds, vertical binds and roller shades on cross roads, bridge corners etc. Sometimes good TV Serials are sponsored by Term Life Insurance Rates Company.

Definition: Advertising is any paid form of non-personal representation and promotion of ideas, goods or services by an identified sponsor. Advertisers include not only business firms, but also museums, charitable organizations, and government agencies that direct messages to Publics.

How advertising works requires a definition of what advertising is.

One definition of advertising is: “Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. For example, some times we see sports events are sponsored which is part of advertising. A football match in California is sponsored by premierinns who is having motels in California. Another example is a technology event is sponsored by insurance software company who are making insurance crm and sfa.

First, what is “non-personal”? There are two basic ways to sell anything: personally and non-personal. Personal selling requires the seller and the buyer to get together. There are advantages and disadvantages to this. The first advantage is time: the seller has time to discuss in detail everything about the product. The buyer has time to ask questions, get answers, and examine evidence for or against purchase.

Wednesday, January 7, 2009

Advertising Management

Advertising management is also important part of the Sales Management. Marketing depends heavily on effective communication flow between the company and the consumer, manufacturing a product and making it available on the market is only a part of company’s job. It is equally important or perhaps more important, to make it known to the consumer that the product is available in the market. In a competitive market, where several firms are striving to win over consumers, it is not enough if just the availability is made. It is essential to propagate the distinctive features of the product. The process does not end here either. The marketing communication is not over by releasing an advertisement, or by offering a price reduction or by introducing attractive packing. It is a larger and continuous process. It involves a continuous dialog between the firms and its customer.

The marketing communication mix consists of five major modes of communication they are: Sales promotion, public relation and publicity, personal selling, direct and interactive marketing and advertising.

Of all the above modes we have discussed all other modes in the earlier units and course except advertising, in this unit let us discuss in detail about the advertising management as a tool of communication.

Friday, January 2, 2009

Sales promotion

As a part our talk on Sales force management we have already talked on so many important factors of the sales force management like sales training, sales development, sales methods, sales types, sales organizations, sales reports etc…. today we are going to discuss one more important factor of sales force management and which is Sales Promotion. For any business sales promotion is the most crucial planning and organizing part of their sale policies.

Co-ordinating the activities of all departments so that maximum progress is made toward overall company objectives is top management’s responsibility. Department heads, in addition to implementing top management’s directives, harmonize their activities so that the tasks of all departments are accomplished effectively. Each understands the functions of other departments and, each is responsible for co-ordinating his/her department’s activities to contribute to company success. For example, a Blinds Company who sales vertical blinds and roman shades online. Marketing team get business online and the production team need to delivery order products within given time by marketing team. In that case co-ordination between two departs is most important.

Good sales organizations plays a very important role in maintaining above said relations and promote the sales. Although primary responsibility of top sales executives is to manage sales department. A telly caller for term insurance agency need to be in touch with his sales departments, so when they have seasonal promotional schemes it be offered to clients right away. Sales executives understand how other departments influence and are influenced by the sales department. These are dynamic relationships, so a change in one department often has repercussions in other. A special co-ordination is required between sales and marketing department, in the areas of advertising, marketing information, service, physical distribution etc.