MUDASSIR KHAN

DIPLOMA IN TOURISM AND TRAVEL MANAGEMENT

SALES MANAGEMENT
SALES MANAGEMENT
Personal selling (or
salesmanship) is the most
traditional method, devised by
manufactures, for promotion of
the sales of their products. Prior
to the development of the
advertising technique, personal
selling used to be the only
method used by manufacturers
for promotion of sales. It is, in
fact, the forerunner of
advertising and other sales
promotion devices.

SALES MANAGEMENT
Personal selling is a face-to-
face contact between the
salesman and the prospect;
through which the
salesman persuades the
prospect, to appreciate the
need for the product
canvassed by him – with the
expectation of a sales-
transaction, being
eventually materialized.

SALES MANAGEMENT
“Salesmanship is the art of
presenting an offering so
that the prospect
appreciates the need for it
and a mutually satisfactory
sale follows.”
“It is the part of a
salesman’s’ business to
create demand by
demonstrating that the
need does exist, although
before his visit there was no
consciousness of that
need.”
SALES MANAGEMENT
Personal selling involves a face-to-
face contact between the salesman
and the prospect.
It is an art of persuading the
prospect, to appreciate the need for
the product canvassed by the
salesman, in a democratic, cordial
and social manner. This, then,
requires outstanding qualities in a
salesman; specially the proficiency in
selling skills and techniques.

SALES MANAGEMENT
A salesman sells product, by first
selling his own idea or viewpoint
to the prospect. Personal selling,
therefore, is the art of convincing
the prospect and influencing his
mind, in a favourbale way.

Personal selling requires a

flexible approach; on the part of
the salesman i.e. the salesman
should modify his approach in
persuading the prospect, in view
of the psychology, needs and
resources of the prospect.

SALES MANAGEMENT
The ultimate goal of personal selling
is mutual satisfaction of the interests
of both – the salesman and the
prospect.

SALES MANAGEMENT
(i) Requirements of Product
Demonstration.
(ii) Illiterate Prospects.
(iii) Traditional Necessity of Personal
Selling.
(iv) Emergence of an Entirely New
Type of Product.
(v) Need to Develop Relations with
Customers.
(vi) Source of Marketing Research
Data.
(vii) To Remove Misconceptions
Caused by Competitive Advertising.

SALES MANAGEMENT
Across different industries, you need
different skills and different
knowledge to prove to your potential
customers that your solution is best
for their particular problem. The
steps of sales process is only a good
start, though, because you need to
customize it to your particular
business—and, more importantly, to
your target customers as you move
them through the sales funnel.

SALES MANAGEMENT
This step is fairly straight forward, but it is
also the great undoing of many a technical
expert turned sales person. When one is
extremely well versed in a particular product
especially a technical one, it is easy to get
caught up in a monologue of all the great
features it provides.
The technical expert turned sales person is
so eager to explain how the product works
or why it’s unique that the benefits to the
customer are left out of the discussion.
Never assume that a prospect will easily link
a feature to a benefit. That relationship must
be stated clearly (something done in the
presentation step 4, after the needs
assessment step 5). The acquiring of product
knowledge for a “technician” therefore, is
less about the features of the product itself,
and more about how the customer will
benefit from those features. When
discussing product, the technicians mantra
should be; “So what?” Consider those two
words to be what the prospect thinks every
time a feature is mentioned, and re-learn
your product from that perspective.

SALES MANAGEMENT
Prospecting is about searching for new
customers. The key to prospecting
effectively is knowing where to dig and
what to look for. It’s also important to
distinguish between a lead, a prospect,
and a qualified prospect. The most
important element in this step is to
create a profile of existing customers.
This may have been done at your
company, but have approach tactics
been tailored to match each profile.
For each market segment do you really
know what the ideal customer looks
like? These questions should be
answered fully in the “Tactics” portion
of a marketing plan.
In the broadest sense, prospecting is an
ongoing process that everyone in the
company (particularly the sales force)
should be involved in. This simply
means everyone should have their
“prospecting radar” up when they are
out and about in the world. Very often,
a great lead turned customer was first
discovered after being heard or seen in
the news at a party, or event, etc.

SALES MANAGEMENT
 At this time, the sales representative
prepares for the first contact with
the potential customer. During this
stage, the sales representative looks
at any information that he may have
about the customer. He may practice
his sales presentation and do
anything necessary to prepare for it

SALES MANAGEMENT
The approach is the next step in the process and it is also one of the most important.
During this step, the sales representative takes a minute or two to try to get to know
the prospect. This phase usually involves some small talk to warm up the prospect
and help them open up.

SALES MANAGEMENT
This is arguably the most important step of the sales process because it allows you to
determine how you can truly be of service. To be a highly effective salesperson, that is
to sell to the prospect’s needs, you first have to understand what those needs are. This
means you must think in terms of solving a prospects problem. The only way to do that
is by asking lots of questions. Asking good questions will not only help you determine
what will best suit the prospects needs, but it builds confidence, trust, and will very
often help the prospect consider issues they may never have thought of. This last point
is powerful because it provides an opportunity to showcase features, which the
prospects answers led you to. What questions would you ask to illustrate how your
product is different/better than a competitor’s. Although intelligence gathering occurs
throughout the sales process, it is at step four where it happens in earnest. What other
information would be important to gather at this stage? (hint: who’s who, referrals).

SALES MANAGEMENT
During this stage of the process, the sales representative makes a presentation.
This can involve demonstrating the product or service and showing the customer
why they need it. The sales rep should focus on the features and benefits of the
product or service during this part of the process.

SALES MANAGEMENT
In some cases, the sales representative will have to overcome objections by the
customer. Many customers have questions and concerns at this point of the sales
process. If the sales representative can answer the questions and overcome any
objections successfully, the barriers for a successful sale will be removed.

SALES MANAGEMENT
After the objections have been removed, the only thing left to do is close the sale.
This can involve writing up an invoice and providing any final information to the
customer. At this stage of the process, you may need to negotiate the final sales
price and any payment terms.

SALES MANAGEMENT
The follow up is the last stage in the
personal sales process. After the
product or service has been
delivered, the sales representative
follows up with the customer to find
out if they are pleased. If there were
any issues with the product, the
sales rep can work with the customer
to get them resolved. If the customer
is happy, the sales rep can also try to
obtain additional referrals from the
customer.

SALES MANAGEMENT
 Theories of Selling
The theories of selling emphasizes on “what to do”
and “how to do” rather than “why”. There are four
theories of selling suchas:
1.“AIDAS” theory
2.“Right set of circumstances” theory
3.“Buying-formula” theory
4.“Behavioural equation” theory.

“AIDAS” theory and “Right set of circumstances” theory is seller oriented.

“Buying-formula” theory is buyer oriented and “Behavioural equation”
theory emphasizes the buyer’s decision process but also takes the sales
person’s influence process into account.

SALES MANAGEMENT
 Theories of Selling
(AIDAS Theory)
AIDAS Satisfaction

Action

Desire
Interest

Attention

AIDAS theory, after the initials of the five words used to express it
(attention, interest, desire, action and satisfaction). During the successful
selling interview, according to this theory, the prospects mind passes
through five successive mental states: Attention, Interest, Desire, Action
and Satisfaction consciously, so the presentation must lead the prospect
through them in the right sequence if a sale is to result.
SALES MANAGEMENT
 Theories of Selling
(AIDAS Theory)
The seller has to accomplish the presentation task in the
following sequence according to the theory:
• Securing Attention: The main aim is to put the prospect into a
receptive state of mind so that the prospect pay attention to
the presentation. The sales person must establish good
rapport at once. Favourable first impressions are to be assured
in first step.

• Gaining Interest: The second goal is to intensify the prospect’s

attention so that it evolves into strong interest. Many
techniques are used to gain interest such as showing visual
aids, flipcharts, technical aids etc.
SALES MANAGEMENT
 Theories of Selling
(AIDAS Theory)
• Kindling Desire: The third goal is to kindle the prospect’s
desire to the ready- to – buy point. The sales person must keep
the conversation running along the main line toward the sale.
The objections to be handled carefully and the desire of the
buyer to bearoused.

• Inducing Actions: The presentation may arouse strong desire

in the buyer’s mind to buy but the sales person must induce
the prospect to act – that the prospect to buy as buying is not
automatic. The sales person will try to find out the right time
to close the sale with the positive action from the buyer’s
agreement to buy.
SALES MANAGEMENT
 Theories of Selling
(AIDAS Theory)

• Building Satisfaction: After the customer has given

the order, the sales person should reassure the
customer that the decision was correct. The sales
person should left an impression in the buyer’s mind
that he mere helped the buyer to decide to buy.

SALES MANAGEMENT
 Theories of Selling
(“Right Set Circumstances” Theory of Selling)

This theory sometimes called “Situation-Response”

theory and it emphasizes on creating a right
circumstance or situation by the sales person so that he
succeeds in securing the attention and gaining the
interest of the prospect, and if the sales person
presents the proper stimuli or appeals, the
desired response (that is the sale) will result.
This is a seller-oriented theory and stresses upon the
sales person controlling the situation.

SALES MANAGEMENT
 Theories of Selling
(“Buying Formula” Theory of Selling)

This is a buyer oriented theory and it emphasizes on the

buyer’s side of the buyer-seller dyad. The buyer’s needs
or problems receive major attention, and the sales
person’s role is to help the buyer to find solutions.

This theory treats the job of a sales person asproblem

solving. The purchase must solve buyer’s problem and
when the purchase gives satisfaction the buyer-seller
relationship will continue.

SALES MANAGEMENT
 Theories of Selling
(“Buying Formula” Theory of Selling)

SALES MANAGEMENT
 Theories of Selling
(“Buying Formula” Theory of Selling)

To ensure purchase , the product or service and the trade

name (that the source of supply ) must be considered
adequate, and the buyer must experience a (pleasant) feeling
of anticipated satisfaction when thinking of the product
and/or service and/or the tradename.

SALES MANAGEMENT
 Theories of Selling
(“ Behavioural Equation” Theory of Selling)
J.A Howard explains buying behavior in terms of the purchasing
decision process , viewed asphases of the learning process.
Four essential elements of the learning process included in the
stimulus-response model are drive, cue, response and
reinforcement, described asfollows:
1. Drives : are strong internal stimuli that impel the
buyer’s response, and are of two kinds:
a) Innate drives: stem from the physiological needs, such as
hunger, thirst, pain, cold andsex.
b) Learned drives: such as striving for status or social approval,
are acquired when paired with satisfying of innate drives, in
marketing the learned drives are dominant in economically
advanced societies.
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 Theories of Selling
(“ Behavioural Equation” Theory of Selling)
2.Cues: are weak stimuli that determine when the buyer will
respond.
a)Triggering cues: activate the decision process for any given
purchase.

b)Non-triggering cues: influence the decision process but do not

activate it, and may operate at any time even though the buyer
is not contemplating apurchase.

Triggering cues take a buyer to the buying point and non-

triggering cues help in selecting the product and making a
purchase decision.

SALES MANAGEMENT
 Theories of Selling
(“ Behavioural Equation” Theory of Selling)
Non-triggering cues are two kinds:

(i)Product cues: are external stimuli received from the

product directly, for example colour of the package,
weight, or price.

(ii)Informational cues: are external stimuli that provide

information of a symbolic nature about the product. Such
stimuli may come from advertising, conversation with other
people (including sales personnel) and so on.

SALES MANAGEMENT
 Theories of Selling
(“ Behavioural Equation” Theory of Selling)

C) Specific product information cues may also function

as triggering cues . This may happen when price
triggers the buyer’s decision.

3.Response : is what buyerdoes.

4.AReinforcement is any event that strengthens the

buyer’s tendency to arrive at a particular response.

SALES MANAGEMENT
 Theories of Selling
(“ Behavioural Equation” Theory of Selling)

Howard incorporated these four elements into anequation:

B = P X D X KX V
Where B= Response of the buyer
P= Predisposition or force of habit
D = Drive level of the buyer or motivation tobuy
K= “ Incentive potential” , that is the value of the
product or its potential satisfaction to the buyer.
V = Intensity of all cues : triggering, product or
informational

SALES MANAGEMENT
 Theories of Selling
(“ Behavioural Equation” Theory of Selling)
The relation among the variables is multiplicative. Thus, if
any independent variable has a zero value, ‘B’ will also be
zero and there is no response. No matter how much ‘P’ is
there may be , if the individual is unmotivated (D = 0),
there is no response.

When ‘K’ value is more, ‘P’ increases in value, means

when the satisfaction is more the reinforcement occurs
and the tendency to make response in future increases
and as a result the buyer will buy the product next time
the cue appears.
SALES MANAGEMENT
 10 Sales Manager Skills Essential for a
Successful Sales Manage

As a sales manager you would organise, coach and lead a

team of sales representatives to work towards agreed sales
targets. If you are good at selling and want to manage a
team, this could be the career for you.

In this job you’ll be using your management skills and

enthusiasm to motivate others. You’ll also need to be
organised and good at planning. You will need sales
experience and management skills to get into this job. Your
skills and experience are likely to be more important to most
employers than your qualifications.

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 1. Analytical Ability

Sales managers receive all kinds of information -- from

verifiable facts to rumors. It is important to be able to see
the relevance of these bits of information, to draw
conclusions that fit the facts, and to analyze a problem to
understand root causes. Having analyzed the available
information in a given situation, they must then judicially
weigh the evidence in order to decide on the best course of
action. Most decisions involve a balance of advantages and
disadvantages, and so they should be comfortable with
tradeoffs.

SALES MANAGEMENT
 2. Understanding the buyer

The Sales Manager needs to have “Social Perceptiveness” -

Being aware of others' reactions and understanding why
they react as they do. The most important of today’s sales
skills is simply understanding the buyer. It’s the foundation
of effective selling. But it involves more than just
understanding who the buyer is. As they say, “This isn’t just
about knowing what brand of coffee the buyer drinks”.
Instead, it’s about identifying the experience that the buyer
wants to have as they consider making a purchase in your
market. Your buyer has a set of expectations about that
experience and your job as a salesperson is to exceed
those expectations. You can’t exceed them if you don’t
understand the experience that the buyer wants to have.
SALES MANAGEMENT
 3. Active Listening & Responsiveness

Giving full attention to what other people are saying, taking

time to understand the points being made, asking questions
as appropriate, and not interrupting at inappropriate times.
Though it goes without saying and that the best salespeople
take action based on what they hear from their customer -
“It’s not good enough to just listen”. You need to internalize
what the buyer just said and then do something about it.
This is called Customer-driven responsiveness.

SALES MANAGEMENT
 4. Concise communications

Given how busy the average buyer is today, a critical sales

skill is to make sure that you communicate succinctly. The
days of the silver-tongued, overly verbose salesperson are
coming to an end. Buyers value how information is
presented more than the information itself. Today, the
preferred form of presentation is conciseness. A good rule
here is to never try to communicate more than three
important points in a single conversation with a buyer.

SALES MANAGEMENT
 5. Service Orientation

Sales managers be Actively looking for ways to help out

their clients in whatever manner possible. Buyers don’t want
to be closed; they want to be helped. That’s why “Always Be
Helping (ABH)” is the new “always be closing”. ABH is more
of a mindset than a skill. A lot of salespeople struggle with
this, but you should try to remember it every time you
interact with a buyer.

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 6. Planning and Organizing

With the amount of data that comes to a Sales Manager on

a daily basis, be it from the Reports from the Team, or the
latest memorandum from the management, A strong sales
manager needs to keep all information on his table planned,
organized, and ready to be dished out at a moment’s notice.
This eventually helps the manager to analyse the data
properly, conduct implementations in the right way, and
prepare objectives and plans in detail. They're also then
able to anticipate problems and outline how they will be
overcome.

SALES MANAGEMENT
 7. Business Acumen

Business acumen is defined as the critical business thinking

required to achieve your sales objectives. The business
environment demands that both sales reps and managers
have strong business skills. Sales managers need to be
able to understand complex business issues and help their
sales reps view their business strategically. Sales managers
need to teach their sales people how to make wiser
decisions, plan better, and effectively allocate their
resources based on customer needs and potential for
growth.

SALES MANAGEMENT
 8. Coaching & Mentoring

Coaching is the number one sales management activity that drives sales
performance. The goal of coaching is to help each sales rep to improve
their performance and reach their true potential. It’s about developing
your “A” sales people to become “A+” and developing your “B”
salespeople to become “A”s.
If performance issues go unchecked, sales and team moral can be
negatively affected. Many sales managers shy away from confronting
sales people who are not performing. It is up to the sales manager to
have planned and unplanned checkpoints to address performance
issues and develop a plan of action to correct the problem. The sales
manager must continually raise the bar on performance. A sales
manager with great coaching skills will not only see improved sales
performance, but will have better sales rep engagement, reduced
turnover and improved job satisfaction.

SALES MANAGEMENT
9. Using Technology to Boost Productivity

Many sales organizations are using technology to become more efficient

and shorten the length of the average sales cycle. Salespeople are
actually busier than ever as evidenced by a recent CSO Insights report
that shows that salespeople only spend 37% of their time actually
selling. The rest of their time apparently is taken over by creating
reports, sending emails, making proposals, attending internal
meetings,and what not. The salesperson that can use technology, and is
able to quickly grasp various CRM softwares, and the like, is sure to
become more productive, and have a significant advantage over their
peers – Because they are then able to spend more time selling. Some
other skills that go hand-in-hand with IT skills are: Good Budgeting,
Report Writing Skills, and PPT Skills

SALES MANAGEMENT
 10. Leadership

Sales managers need to be strong leaders. The key to

becoming a strong sales leaders is for you to be able to
create and share a vision with your sales team. Strong sales
leaders, have the skill and the will to help their team adopt
the vision and keep them focused on working towards
achieving it. Sales leaders require the ability to
communicate, innovate, inspire and set the tone for the
sales team.

SALES MANAGEMENT
 Essential Qualities of Salespeople

More than a job, successful selling is a result of skill and

practice. Like all other skills, great selling techniques cannot
be acquired in a day. The most successful salespeople work
incessantly toward improvement, practice regularly, and
grow incrementally with each experience. Acquiring killer
sales skills requires time and dedication. Here we outline
the characteristics that, when developed, can turn a good
salesperson into a great salesperson

SALES MANAGEMENT
 1. Upbeat

Hearing negative responses on a regular basis can be

extremely disheartening. Unfortunately, there’s no way
around this in sales. But for successful people, “no” does
not mean the end. Successful salespeople are those who
have emerged stronger out of the most difficult of situations.
They face them with a positive attitude; learning from them
and always seeing light at the end of the tunnel.

SALES MANAGEMENT
 2. Passionate

Passion is not just working towards meeting a specific quota

for a successful salesperson. Truly passionate salespeople
are those who work towards higher goals like excellence
and building long-lasting relationships.
The best salespeople are passionate about making a
change in people’s lives and work towards it every single
day. They know that every part of the sales process is
important and do not make the mistake of not taking closing
seriously. They are passionate about growing in their
careers, making sure they always give their A game.

SALES MANAGEMENT
 3. Ingenious

The most successful salespeople are creative and think

about unique ways to solve problems for their clients. They
come up with novel ideas when most people form the same
conclusions.
Top performing salespeople have the ability to look at things
differently. Their brilliant analytical skills enable them to offer
different solutions that others normally don’t see. They are
resourceful and make the best out of what they have.

SALES MANAGEMENT
 4. Empathetic

Empathy and compassion are prerequisites to great

customer service. Empathetic salespeople listen intently to
what actually affects people and provide them the complete
liberty to express their concerns.
They try to understand people by putting themselves in
other’s shoes from a neutral perspective, without letting
judgment or an ulterior motive guide them. This helps
them understand people better and interact accordingly.

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 5. Accountable

They take complete ownership over their work and ways to

do it and do it with full dignity and respect. They hold
nobody but themselves accountable for whatever results
may arise, both positive and negative.

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 6. Well Prepared

Impressing clients and making them buy a product is no

cake walk. It requires a tremendous amount of research,
confidence and flawless execution of pitches.
Effective team members use all their resources and time to
find out what exactly they are going to pitch to different
clients and tailor their presentations accordingly.
They do NOT go on and on about products and services but
offer something of value through a conversational approach,
which is jargon-free.

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 7. Tech-Savvy

The most successful salespeople are always ahead of the

game for a reason – they invest their time in educating
themselves.
Winning salespeople keep themselves updated on latest
market trends, products, technology, and competition in
their niche.
They also use all kinds of sales tools to participate
in professional development and stay motivated.
They keep a variety of tools handy that can help them learn
about things that help them perform better.

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 8. Highly Engaged

Highly successful salespeople are engaged and love being

a part of the organization they represent. They love their job
and the people they work with. Because they believe in the
product and feel motivated, they sell with the utmost
conviction.
On the contrary, their organization also invests in them,
which helps them retain these superstars. They participate
actively in assessments, surveys and training programs,
look up to their leaders and reap the benefits of the
resources available to them.

SALES MANAGEMENT
 9. Goal-Oriented

Top sales pros know exactly what they want to accomplish

(and by when) so they will plan around these targets
accordingly.
This requires focus and setting ambitious, but achievable
goals. As a result, the salesperson must be extremely
persistent and hardworking.
Successful salespeople get goals that help them grow as an
individual and as a professional. They have long-term goals
which require patience and practice.

SALES MANAGEMENT
 10. Relationship Driven

The most effective salespeople know how to deal with a

variety of clients, and being versatile with each type.
There will undoubtedly be wins and losses. However, the
most successful salespeople never say goodbye to clients.
They reach out to the ones who have said no in the past,
and they are also available to assist those they have sold to.
The best salespeople know the importance of building trust
and ensuring satisfaction. They also know these things can
take time, which is why they follow up with prospects and
clients regularly over time, not only when they’re critical to a
deal.

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SALES MANAGEMENT