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.

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?

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

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

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.

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.

Definition
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”.

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.

Non-Personal
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.

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.

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.

Sales Organization

Definition of Sales Organization
The value-based orientation and set-up of sales channels and management structures is a central part of sales control. In the past, having an extensive agency network was a central success factor. In the future, the focus is more likely to be on networking of various sales channels (key word: multi-channel). This will mean numerous changes, for example in the supply of the necessary information, in the management of sales channels, and also in the creation of customer-friendly product bundles. Integrated reconciliation of sales activities and avoidance of channel conflicts will be of great importance.

Building the sales organization
The sales department in any organization occupies strategic position. Of all company personnel, those in the sales department are in the closest touch with final buyers and middlemen. Sales department personnel also work closely with such key publics as the industry, the government, the educational world and the press. How these representatives of the sales department conduct themselves with the public affects the company’s reputation. Good relations depend in larger measure upon the skill with which personnel selling programs are planned and executed, thus building an good sales organization plays a very important role in maintaining above said relations and promote the sales.

Sales Control

Sales co-ordination and sales controlling including sales expense control
Sales co-ordination goes hand in hand with sales control. The sales executives have the responsibility for co-ordinating the different elements of the selling efforts. He should ensure that the various elements do not pull in different direction.

It is through sales control that the sales executive ensures that all the personnel selling objectives of the firm are achieved. Sales control also helps him to ensure that the sales goals are properly aligned with the other goals of the firm. Even in online business sales control is very much important factor. Online blinds store who are selling roller shades and woven wood shades, for them sales control is very much important factor.

Methods of sales control:
Sales managers use both formal and informal control methods in exercising sales control. The more common one among the methods of sales control are as follows:

a) Sales targets and sales reports
b) Sales expenditure budget and expenditure reports
c) Travel plan and tour reports
d) Watching the salesman in the field
e) Information gathered from dealers and major customers.
f) Inspection of depots/warehouse
g) Sales conferences.

In our next post we will discuss on some important part of sales force management and which is Sales Organization and sales promotion.

Sales report

Today we are going to discuss on Sales Report and user of sales reports and types of sales reports. The fundamental purpose of sales reports is to provide control information. Good communications require interaction between those preparing and those receiving reports. A good sales reporting system provides both for communication from field to headquarters and from headquarter to the field. Field sales reports provide sales management with a basis for discussion with sales personnel and it helps to the sales personnel in their self-improvement programs.

Uses of sales reports:
a) Sales reports provide data for evaluating performance.
b) Helps to plan the activity to the salesman.
c) Helps to record the customers suggestions and complaints, about products, service policies, price changes advertising campaigns etc.
d) Helps to gather information on competitors activities.
e) Helps to report changes in local business and economic conditions.
f) To keep the mailing list updated for promotional and catalog materials.
g) To provide information required by marketing research.

Types of sales report:
a) Progress or call report
b) Expense report
c) Sales work plan
d) New business or potential new business report
e) Report of complaint and/or adjustments

Growth and Development

Ensuring growth and developing new accounts
Sales organization plays important role not selling to the existing customers and the same number of units all the time, it is very important to maintain growth in the quantity of sales through identifying new markets and the new customers. In term life insurance business, adding new clients, they can sell new policies and by that business can grow and get developed. So, for term life insurance company identifying new segment of markets and by that adding more and more new customers is always on priority list.

Sales communication and reporting
Sales management is carried out largely through communication-either it is oral or written or both. The communication in the sales department is two way process. The sales manager lets his men know what they are expected to achieve, how they are performing, how they can improve and perform better. He also keep them informed of what is happening in the company related to the, products, production, distribution, promotion and profitability. Insurance SFA software helps term life insurance agents to keep and maintain two way sales communication and sales reporting.

The salesman in turn keep the sales manager informed of what is happening in the market and how the sales and marketing programs of the firm are progressing. In the field’s sales situation, communication cannot be always face-to-face as in factory or in office situation. A Local installer for blinds and roller shades company play important role for two way sales communication. He let customer know about the company products and policies at the same time he update company about the feedback from the customer. Sales persons work independently and always from the office.

Managing the marketing channels

It is very important to secure and maintain harmonious working relationships with the distributive networks are an important as building and maintaining favourable relations with final buyers. Distributive outlets are customers for the products, and collectively they bear responsibility for making the pay-off sales to final buyers. Unless the supply of product flows through the final buyers, marketing channels clog, and all previous personnel selling and other marketing efforts are wasted.

Both the manufactures and distributive outlets have much to gain from co-operation, and much to loose if it is lacking. Although co-operation is a two way street, generally the manufacturer must initiate it. Those charged with planning, administration, and implementation of programs of co-operation with distributive outlets must consider the implications for personal selling strategy and sales department operations.

No manufacturers marketing program is complete if it lacks plan for securing and maintaining the co-operation of the distributive outlets. The fortunes of manufacturers rise and fall with those of their distributors and dealers. If distributors and dealers succeed in selling the products, the manufacturer also succeeds if they fail the manufacturer fails.

Training and development

In every area training is the prerequisite to improvement, like-wise the purpose pf sales training is to achieve improved job performance, and the training should rest on the convictions that every salesman can be improved through carefully designed training

Steps involved in designing sales training:

1. Defining training aims.
2. Determining the training needs.
3. Determining the special needs.
4. Deciding nature and type of training required: Normally following are the some types of training, In company training, external training, individual training, group training, on-the job training, off-the job training.
5. Deciding the content.
6. Choosing the methods: The lecture, the personal conference, demonstrations, role playing, case discussions etc.
7. Developing the material required for training.
8. Evaluating the effectiveness of the training.

Aims of Sales training: Normally the sales training will have following aims to inculcate new techniques or to improve upon the existing knowledge.

1. To increase sales.
2. To acquire new accounts.
3. Faster turn round stocks.
4. Selling a complete product line instead of just fast selling items.
5. Better merchandising and sales promotion.
6. Better technical knowledge.
7. Improving sales presentation and sharpening sales skills.
8. Improving customer relations and dealer relations.

blinds, roller shades, woven wood shades

Sales Approaches

Symptoms of poor morale:
1. Minor complaints get magnified.
2. Unionism suddenly arises.
3. Anti-management attitude of sales personnel.

Sales coaching/supervision: It is also important factor in sales management. It is perhaps the most neglected, but potentially most rewarding area. Effective sales supervision will increase sales and profits and reduce selling expense. It will also improve the morale and motivation of the salesman and reduce their wasteful turnover. The extent and sales supervision may vary depending the complexity of the organization. Important aspect that requires close supervision includes.

1. Setting norms for sales calls.
2. Managing key customers.
3. Guiding salesman on route planning.

Evaluation/appraisal: The basic idea of all performance appraisals is the belief that human beings have great capacity for growth and improved performance under right climate for performance, they will respond creatively and positively. The same principle applies equally to the performance appraisal of sales personal. The sales personnel perform better when performance criteria, goals, and tasks are established clearly and by mutual agreement. Likewise their performance is considerably improved when they are given periodic feedback on how they are performing and in what areas they can improve by greater application. The sales personnnel performance helps debt consolidation work in company. They also come up with improved performance when they are given the necessary help and guidance on the job and are rewarded promptly according to their contribution.

Motivation of sales personnel

Motivation sales personnel is an important aspect of sales force management sales force management sales personnel require additional motivation because of inherent nature of the sales job, role conflicts, the natural tendency towards apathy, and difficulties in building group identity. The concept of need gratification and interdependence assist in understanding efforts require that sales personnel. Implementing motivational efforts require that sales executives be skilled leaders, rather than drivers, of sales personnel. It demands that they be skilled in interpersonal and written communications. Satisfactory job performance develop out of deep understanding of motivational forces and process, effective leadership, two-way communication, and effective handling of relationships.

Moral building: Motivation in the larger sense includes morale good morale leads to good motivation and to good performance. In other words, morale and motivation go to hand in hand, it is the responsibility of sales management to built up the morale of the sales force and maintain it at high level. Following are the some of the reasons for poor morale.
1. Improper designing of the sales territories.
2. Some salesman might be given territories with little potential.
3. The compensation plan may be faulty.
4. Performance evaluation not done with fairness and objectivity.
5. Unfair treatment in rewards, transfer and promotions.

Compensation plan types

Types of compensation plans:

A. Straight salary plan:
This is the simplest compensation plan under this plan sales person receive fixed sums at regular intervals, representing total payments for their services. This method has advantages as well as disadvantages it should be carefully chosen according to the type of product industry.

B. Straight-commission plan:
This plan mainly relies on the theory that the sales personnel should be paid according to productivity. The assumption underlying this plan is that sales volume is the best productivity measure and can therefore be used as the sole measure.

C. Combinations of salary and incentive plan: Most sales compensation plans are combinations of salary and commission plans. It includes fixed salary plus incentive according to the performance of the individual sales person.

Apart from the above methods some companies may have the system of paying bonus and fringe benefits, Bonus differ from combinations – Infact a bonus is a amount paid for accomplishing a specific sales task a commission varies in amount with sales volume or other commission base. Fringe benefits, which do not bear direct relationship to job performance, it is normally percent of the total sales performance package, out of which some are required by legal and government such as provided fund, gratuity, etc.

roman shades, vertical blinds, window blinds

Managing the Sales Force-1

Managing the sales force involves the following conceptual activities, let us discuss each of them briefly.

1. Compensation
2. Motivation of sales personnel
3. Morale Building
4. Sales coaching/supervision
5. Evaluation/appraisal
6. Training and development

1. Compensation: Once a sales personal is selected it is necessary to design a good sales compensation plan, according to experts sales compensation plan meets the following requirements.

It provides a living wage.
The plan fits with the rest of the motivational program.
Plan should be fair.
It must easy for sales personal to understand.
Plan must adjust pay according to change in performance.
It must be economical to administer.
It must help in attaining the objectives of the sales organizations.

Steps in devising the good compensation plan: Whether contemplating major or minor changes or drafting completely new sales compensation plan, the sales executive approaches the project systematically, good compensation are built on solid foundations. A systematic approach assures that no essential step is overlooked, they are:

a. Define the sales job.
b. Consider the company’s general compensation structure.
c. Consider compensation patterns in company and industry.
d. Determine compensation levels.
e. Provide for the various compensation elements.
f. Consider special company needs and problems.
g. Consult the present sales force.
h. Reduce tentative plan to writing and preset it.
i. Revise the plan.Implement the plan and provide for follow up.

window blind store, premierinns, term life insurance

Creating the Sales Force-1

Source of sales force recruitment: Is categorized into two types’-namely internal sources and external sources.

An internal source consists of: Company sales personnel, company executive and internal transfers. An external source consists of: direct unsolicited applications, employment agencies, sales people making calls on the company, employees of customers, sales executives club, sales force of non-competing companies, sales force of competing companies, educational institutions etc.

Selection: Selection system of sales personal range from simple one step system consisting of nothing more than an informal personal interview, to complex multiple step system incorporating diverse mechanisms designed to gather information about applicant for sales jobs. A selection system is a set of successive ‘screens’ at any of which an applicant may be dropped from further considerations.

Steps involved in sales personnel selection: Normally following are the steps used in most of the company’s for the selection of the sales personal:

1. Preliminary interview and pre-interview screening.
2. Formal application form.
3. Interview: The techniques may consist of, patterned interview,
non-directive interview, interaction interview.
4. Rating scales.
5. References and credit check.
6. Tests: Tests may be consists of following types – tests of ability
tests of habitual characteristics, Interest tests, achievement test.
7. Physical examination.