Category: SALESMANSHIP (Page 2 of 2)

Sales Presentation : Full Overview

May 25, 2022 / anurooba1999anura@gmail.com

The term “sales presentation” refers to the selection and display of items in order to increase the number of potential customers that visit the store. It also involves the shop’s interior decorating, an eye-catching display, and correct product placement on the counter.

Because clients often approach a counter, effective presentation is critical in selling items intrigued by the items on display in the shop’s shelves.

The proper display of goods is critical for capturing and maintaining the consumer’s attention in the products.

Customers will come into the business only to look at the things that are well presented, even if they have no intention of buying them.

A well-planned presentation might sometimes persuade such clients to make a good purchasing choice.

Presentational aids are elements other than the speaker’s words that are used to assist the speaker’s aim. They can be visual assistance, audio aids, or other types of assistive technology.

Projectors, real items, pictures, diagrams, charts, and other visual aids are examples. Music, talks, recordings, and other audio aids are examples.

Computers, lighting, microphones, and recorders are examples of technology that can be employed.

Actually, the term ‘presentational assistance’ is a misnomer since, while they do assist the presenter, their primary goal is to assist the audience.

Some individuals are conscious of their requirements, and excellent presentation can help them become more aware of their needs in particular terms and with more precision.

Customers are instinctively drawn to things that are neatly placed and exhibited in the store, and their latent desires are aroused.

Customers typically compare numerous articles and their distinct attributes before purchasing a product.

In reality, the presentation allows people to compare and select the best solution for their unique needs.

As a result, it is critical for a salesperson to first understand the demands of the customer and then choose the most efficient sales presentation tactics.

The following things should be taken into account:

(a) understanding the buyer’s demands;

(b) identifying sales presentation approaches (or tactics); and

a) Recognizing the buyer’s requirements: The easiest approach to determine the buyer’s requirements is to ask as many questions as possible.

According to Neil Rackham, salespeople should ask the following questions in a logical order:

i) Situational inquiries: These inquiries are about the prospect’s current condition or anything else the salesman wants to know.

For instance, who are the key influencers in this product/purchase service’s decision? Or are you switching brands or purchasing this product/service for the first time?

ii) Problem-solving questions: Salespeople use these inquiries to figure out what the customer’s issues, challenges, or needs are.

Have you had any issues with existing vendors in terms of price or delivery, for example? Or whatever components of the present system aren’t working?

iii) Problem impact questions: Salespeople ask these questions to help buyers comprehend the problem’s effect or implications, as well as the necessity to solve it.

These are the most important questions to ask, and the salesman should ask as many as are necessary.

To give an example, what effect will the delivery issues have on cost and customer satisfaction? Or what effect would a malfunctioning system have on customers?

iv)Question on the worth of the solution: These questions are used by salespeople to assist buyers in determining the importance or usability of a solution.

How much time and effort may be saved, for example, if the product is purchased? Or how can that time be put to the best possible use?

v) Questions for confirmation: Salespeople ask these questions and offer the necessary information to back up their claims.

For example, the power consumption of this refrigerator has been confirmed by a reputable body to be significantly lower than that of other brands.

For effective prospect handling, salespeople should ask fewer situational inquiries and more questions on problem identification, its impact, and better solutions to current problems.

B) Methods of sales presentation identification: Salespeople must be familiar with the numerous sales presentation approaches (or tactics). These are the following:

1) Stimulus-response technique

2) Formula technique

3) Method of Need – Satisfaction

4) Advantages and Benefits of Features Buying and selling (FABS)

5) Selling in a group

6) Selling in Relationships

1. Stimulus response method: This strategy is also known as the canned approach, memorised sales presentation, or prepared sales presentation.

This strategy assumes that if a salesperson gives the correct sales presentation, i.e. stimulus, the prospect would respond positively. The salesman performs the most of the talking in this strategy.

Without first questioning about the prospect’s needs, the salesman describes all of the product’s characteristics and asks the prospect to buy it. If the prospect does not buy, the salesperson will try to market the product again.

Telemarketers and door-to-door salespeople are the most common users of this strategy. When the time for a sales presentation is limited and the product is non-technical, it is often used to teach new salespeople.

For difficult or urbane prospects, however, this method is unsuccessful. The fundamental flaw in this strategy is that instead of asking questions and listening to the needs of the prospect, the salesperson instead gives information on product features and benefits, which may or may not be essential to the customer.

2. Formula technique: This strategy, which is also known as ‘formulated approach’ or’ mental states marketing,’ is based on stimulus response thinking.

Because the salesperson believes that most consumers can be lead through mental states or phases in the purchasing process, he or she employs a well-known formula.

It is divided into four stages: Attention, interest, desires, and action are all things that people pay attention to (AIDA).

1st Stage: Attention – The sales agent begins the sales conversation by gaining the prospect’s attention by making nice remarks about the prospect or the prospect’s company.

Appearance and a cheery demeanor also contribute to a positive first impression. The goal of the first encounter is to get the prospect to be receptive to new ideas.

A salesman should always schedule a meeting with a prospect ahead of time and spend the first few minutes easing the prospect into the conversation by selecting appropriate opening words.

Stage 2: Interest – The salesman guides the prospect’s thought process to the next step in obtaining interest. To put it another way, the salesman determines which aspects of the product or service most appeal to or interest the prospect.

To discover the prospect’s interest or appeal, many approaches are employed. Salespeople may occasionally bring a sample of the product, or the entire product if it is not heavy, to show or demonstrate to a customer. Some may send mailers; others may transport visual aids such as a CD, a product pamphlet, or product photos. Successful salespeople ask relevant questions to gain a better understanding of the buyer’s demands or issues, as well as to pinpoint the biggest attraction or interest.

Stage 3: Desire – This phase’s goal is to arouse sentiments in the prospect of wanting to try out the product or service. The salesperson continues the sales pitch and shows the prospect how his or her product or service may address the buyer’s problem.

The buyer may raise various complaints throughout this procedure, which must be addressed correctly. External interruptions, such as prospects being busy with phone conversations, may be an issue for salesmen at times.

In such instances, it is recommended that the salesperson summarises what has already been mentioned and then moves on to the next step of the sales presentation.

Stage 4: Action: Buying the product/service is the action in this stage. Some salesmen utilise a trial close to see if a potential customer is ready to buy. If the prospect agrees to buy, the salesman will ask them to place an order.

If the prospect objects, the salesperson resumes the presentation in an attempt to persuade the prospect to accept his or her proposal.

This strategy has the advantage of requiring the salesperson to organise the sales presentation and comprehend the customer’s thinking processes.

The negative is that the approach is less successful if the customer’s wants are not understood.

3. Method of need-satisfaction: This is the most difficult and inventive approach of selling. It’s a different type of interactive sales presentation than the prior two. By asking situational, problem recognition, problem impact, solution value, and confirmation questions, the salesman begins to comprehend the buyer’s (or prospects’) needs.

After properly analysing or investigating the buyer’s needs/problems, the salesperson presents a written proposal or a sales presentation to show how his or her product or service can solve the buyer’s problem better than a competitor’s.

The process of selling need fulfilment is depicted in the figure below:

1. Open: At this point, the salesman begins the selling process by opening his presentation to the prospect.

2. Probe: During this step, the salesperson asks the prospect questions to ensure that he fully knows his wants.

3. Assistance: The salesman provides support for the prospect’s demands while also attempting to detect unspoken wants.

4. Close: The salesman presents the prospect with a value proposition that may meet his needs and completes the purchase.

When a salesperson successfully persuades a prospect to buy a product, the strategy is advantageous. This strategy can also aid in the development of consumer loyalty and trust.

Tata Sky Set Top Box Providers, for example, take a need-satisfaction strategy. They provide a variety of packages to cater to the demands of diverse clients. Rechargeable packages are available on a daily, monthly, or annual basis.

Customers may also pick and choose which stations they want to watch and pay for them.

4. Features Advantages Benefits Selling (FABS): The salesperson strives to tie all of the product/qualities service’s together into an advantage or benefit that the consumer considers important.

Prospects usually dismiss items or services that are presented to them, even if the product or service is the perfect fit for their requirements.

They continue to ignore the product or service until they come across one that has clearly stated benefits or advantages for them.

As a result, FABS contributes to the advertising message’s efficacy. The following are the three key components of this selling strategy:

(i) Features: The salesperson discusses the product, service, or market offering’s features or characteristics.

For instance, a sleeping bag’s 2 inch insulating layer is a significant characteristic.

(ii) Advantage: The salesman explains how the feature may benefit or assist the prospect.

For example, the sleeping bag’s 2 inch insulating layer aids in the retention of body heat during the night, which is a benefit.

(iii) Benefits: The salesperson next explains how the feature or benefit addresses a specific demand identified by the prospect.

When a prospect expresses a benefit, it becomes a compelling statement that the salesperson may utilise to close the deal.

For example, when a consumer goes camping, the sleeping bag’s 2 inch insulating layer will enable him or her sleep peacefully at night.

As a result, kids will be able to get a good night’s sleep and be ready for enjoyable activities every day.

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5. Team Selling Method: Team selling entails the use of multi-person sales teams to interact with their clients’ multi-person buying centres.

The members of a team may work together and discover errors throughout the presenting process, allowing for continual learning. They can also spot elements that may be included in the sales pitch.

For instance, if a software business X needs to sell software to a bank, the team will include employees who are responsible for installation, automation, customer technical support, and so on.

6. Relationship Selling Method: Relationship Selling is cultivating a bond or relationship with prospects while also listening to their requirements. It is established when the salesperson demonstrates concern and wins the customer’s trust and confidence.

Knowing their wants and discovering their hidden anxieties can help you create solutions that are tailored to their specific requirements and strengthen your relationship.

Working out details is simple when you have a good connection; yet, if you don’t have a good relationship, they might become barriers.

In relationship selling, the salesperson takes on the role of a customer supporter.

They grow reliant on the services or goods, and if the company’s offerings meet their demands, they reply with new offers. It is beneficial to businesses that operate in competitive marketplaces.

c) Developing an effective presentation.

Whether a prospect buys from you or one of your rivals is frequently determined by the quality of your sales presentation.

Most presentations, on the other hand, lack style and are rarely captivating enough to persuade the other person to buy. These seven pointers can assist you in creating a persuasive sales presentation.

1. Make the sales presentation relevant

Using a generic presentation is one of the most typical blunders individuals make. In every presentation, they say the same thing in the hopes that something in their presentation would appeal to the potential buyer. I’ve been exposed to several “canned” PowerPoint presentations and have been a victim of this strategy more times than I care to recall.

The discussion about your product or service should be tailored to each individual; include specific details that are special to that consumer. This entails doing some preliminary research on your consumer and learning about their business and sector. Examine their company website or Facebook page for newsletters, blogs, yearly reports, and other pertinent information.Investigate their competition and, if feasible, customise your presentation to show how your product might provide them a competitive edge.

Place the company’s logo on your slides if you’re using PowerPoint or other presentation software, and explain how the important slides pertain to their issue. Demonstrate how your product or service addresses their unique issue. This implies that before you start talking about your firm, you must ask your prospect probing questions.

2. Create a connection between your product/service and the prospect.

I developed a sample of the product that will eventually be used in their programme for a presentation to a prospective customer.I delivered my prospect the item his team would be utilising after a brief chat — rather than telling him about it, I placed it in his hands. He could then see exactly how the final result will appear and inspect it in great detail. He was able to ask questions and observe how his team would use the information in their work setting.

Also, keep in mind that you should focus on the advantages of your items rather than the features. Tell your consumer what they’ll get if they use your product instead of one from your competitors.

3. Get straight to the point.

Today’s businesspeople are simply too preoccupied to listen to lengthy debates. Know what your main points are and how to deliver them effectively.I recall speaking with a salesperson who went on and on about his goods. I was ready to make my buy after seeing his merchandise and understanding how much it would cost. Unfortunately, he kept talking, almost talking himself out of the deal. Before you meet with your prospect, make sure you know what crucial themes you want to cover and practise saying them out loud.

Prepare to listen to the client during and after you make your important points – ask questions and take notes on their remarks so you can better determine their exact need(s) and: Tell them how your product satisfies their requirement (s)Address any concerns or complaints they may have regarding the product.

Use their suggestions to enhance your product and/or to fine-tune future sales pitches.

Interrupting or arguing with a customer is not a good idea! If a group discussion deviates from the topic of your presentation, gently bring the dialogue back on course.

4. Be lively.

We’ve heard a lot of sales presentations that are dull and unoriginal. Make sure you show excitement and energy if you truly want to stand out from the crowd. Use your voice efficiently and modulate it in a variety of ways.When people talk about a product they are highly familiar with, they frequently make the mistake of speaking in a monotone, which causes the other person to rapidly lose interest in your presentation.

Taping your presentation with a voice recorder. This will allow you to hear how you sound while you talk about your product. We must admit that when I first utilised this strategy, I was absolutely ashamed.

5. Put up a show.

In The Sales Advantage, a vending salesperson is seen spreading a hefty piece of paper on the floor and asking, “Would you be interested if I could show you how that area might make you some money?” Consider the impact of this approach with the standard method of saying, “We can help you generate more money.” What can you do to add a little bit of showmanship to your presentation?

6. Use a practical demonstration to demonstrate your point.

My friend sells sales training, and during his presentation, he frequently uses the whiteboard or flip chart in the prospect’s boardroom. Rather than informing his customer what he would accomplish, he gets up and gives a brief presentation. He jots down facts and statistics, draws images, and takes notes on specific comments and assertions made throughout the conversation. This strategy has never failed to assist his prospect in making a decision.

7. Finally, have faith in your product or service.

This is, without a question, the most important aspect of any presentation. Do you get more passionate and active when discussing solutions? Is your tone of voice enthralling? Is your excitement reflected in your body language? If not, you must alter your strategy. After all, how can you expect your consumer to become inspired enough to buy if you can’t feel enthused about your product?

TYPES OF SALES PRESENTATIONS

1. Canned Presentation

Canned presentations are ones in which the presentation text has been meticulously crafted, tested, and then written down. While giving a presentation, each salesperson is required to memorise it and follow the contents in the specified sequence.This type of presenting is most typically employed in non-technical product sales, such as pharmaceuticals, telephone sales, and door-to-door sales.

The drawback of this method is that the prospect’s engagement is limited. He may perceive it as high-pressure sales and put off making a buying choice.

2. Planned presentation

It is, without a doubt, meticulously prepared and organised, yet it still has the personal touch of the person giving the presentation. The training department just gives a structure in this manner, and the individual salesperson fills in the blanks with explanations, descriptions, and pictures.

This presenting approach has the benefit of appearing more conversational and less official since the salesperson uses his own words.

As a consequence of the prospect’s involvement in this presenting style, his worries and queries may be thoroughly addressed.

3. Presentation (Audio-Visual)

The salespeople largely rely on the A V aids for such presentations. Charts, slides, video films, prototypes, computer-based presentations, and the utilisation of actual goods are all examples of these aids. Such presenting strategies are employed in the advertising and computer software industries. In these presentations, the salesperson’s speaker takes a back seat to the prospect, with the focus being on the A V assistance.

Such aids are commonly employed not just to attract attention, but also to explain or show concepts that would be difficult to explain or exhibit without them.

4. Presentation on Problem-Solving

This is a two-step manner of presenting. The first step is to research the needs of each unique prospect, and the second is to make a proposal. As a result, the candidate will be able to address the problem. Such an approach is often employed in the insurance industry, where the insurance agent inquires about the prospect’s needs and then recommends a specific policy, along with its advantages and benefits.

Similarly, in management consulting assignments including all functions or high-tech tailored goods, similar strategies are applied.

TYPES OF PRESENTATION AID (SALES AIDS)

Objects

When you utilise physical objects as direct examples or metaphors for points you wish to convey, they may be incredibly beneficial and have a very emotional impact.

2. Photographs

Photographs depict reality and are simple to incorporate into slides, where they may be used to illustrate a point or just serve as a backdrop. They may be used to depict activity, evoke emotion, and more. When you show someone doing something, your viewers may identify with the visual and put themselves in that person’s shoes.

Photos have the problem of losing critical information, therefore it’s important to make sure they’re shown on a big screen.

Any legal limits, such as privacy regulations, must also be addressed while taking images of individuals. If you’re unsure, evaluate whether or not the person you’re photographing is glad to be there. While having people in the background is typically OK, when they are the subject and you are using them to advertise anything, you may be in trouble.

3. Diagrams

Diagrams are drawings or sketches that outline and describe components of an item, process, or occurrence that are not easily visible. Diagrams, like graphs, can be thought of as a sort of chart, as seen in organisation charts and process flow charts.

4. Graphs

Graphs and charts are visual representations of data. Line graphs, bar charts, pie charts, radar diagrams, and other types of graphs are among them.

When it comes to displaying meaning and expressing the value of data, graphs are typically far superior to tables. They excel at this by demonstrating how certain numbers are significantly greater than others, how numbers vary over time, and so on.

Line Graph– A line graph is used to depict changes over time. A line graph demonstrating the decrease of Enron’s stock price from August 2000 to January 2002 is shown in Figure 15.10 “Enron’s Stock Price.” Although there are several strong spikes, the line has a distinct downward trend, indicating the collapse of Enron’s stock price.Showing a line graph like this allows the audience to see the links between the numbers, and it makes it much easier for them to absorb the information than if the speaker merely read the numbers out.

Bar Graph– Bar graphs are excellent for displaying disparities in amounts. They may be used to analyse population demographics, gasoline prices, math aptitude across grades, and a variety of other data.

Figure “Natural Death vs. Homicide” is a well-designed graph. It’s straightforward and well-labeled, making it simple for you to walk your audience through the many types of death and their respective numbers. The bar graph depicts the difference between natural deaths and homicides in different age groups.

Pie Chart/Graphs – Pie graphs should be as simple as feasible while yet retaining crucial information. The pieces of the pie must be drawn proportionately, much as other graphs. Figure depicts a clear and proportionate chart that has been color-coded in the pie graph “Causes of Concussions in Children.” When it’s impossible to include the explanations in the graph’s actual sections, color-coding comes in handy; in that case, you’ll need to include a legend, or key, to explain what the colours in the graph imply. Audience members may easily notice in this graph that falls are the leading cause of concussions in youngsters.

4. Charts

Non-numeric charts can display a variety of information, especially when separate objects have specific connections with one another. Flowcharts depict the connections between various operations. Who reports to whom is shown in organisational charts. Many-to-many relationships are depicted in network diagrams.

Maps are several types of charts that depict where objects are in relation to one another. They might be scaled or just relative (such as the famous London Underground map).Maps can be geographical, but they can also be any visual representation of how things connect and how to move from point A to point B. For example, you might create a metaphorical map of how to progress from a novice speaker to a professional presenter.

Making presentational aids work

Keep it simple.

If you make your presentational aids overly complicated, they will be difficult to understand. Remember that your audience has to ‘get it’ immediately, therefore the tools you use should be straightforward and need little interpretation.

2. Make them stand out.

If you’re speaking in a vast room, anything little in your palm will go unnoticed and hence have less impact. Big objects are much simpler to notice, whether they are tangible or projected. They also have a bigger influence.

3. Bring them together.

The visual help isn’t a goal in and of itself. It’s to back up a point you’re making, so make sure you link the two together clearly, disclosing the aid’s purpose in the process.

4. Address the crowd.

Present to the audience rather than the visual aid. Speakers frequently get into the trap of looking at the assistance rather than the people to whom they are speaking.

5. Practice

Magicians spend a lot of time on sleight of hand in order to make their tricks appear effortless. You won’t need to rehearse quite as much, but you should familiarise yourself with the presentational aids you’ll be employing.

You may make the arrival (and disappearance) of your presentational aids an event in and of itself, just like the magician pulls the rabbit out of a hat.

The advantages of a sales presentation

1. Face-to-face interaction: It allows you to interact with consumers and prospects in person. It aids in the development of trust and the strengthening of the relationship between the salesperson/organization and the customer/prospect.

2. Engagement: It assists in the audience’s engagement. Audio-visual aids can help to capture the audience’s attention and have a greater impact than simply speaking, therefore increasing engagement.

3. Customizability: The presentation allows you to change the material and tailor it to different audiences. The client’s needs may be noted, and the presentation can be adjusted accordingly.

4. Consistency: It ensures that information is communicated to customers/prospects in a consistent manner, even when various salespeople are communicating with them. The presentation lays forth a fundamental framework for talking with consumers about products and services. It also aids the presenter in stressing key features and themes.

5. Flexibility: The presentation may be utilised in a variety of settings, including face-to-face meetings, big gatherings, and Webinars. The material might be the same, but it can be given to individuals or groups via a variety of platforms.

Characteristics of a good presentation

A good presentation must have certain characteristics. They are as follows:

1. Getting people’s attention

2. On-time presentation

3. Presentation of information with clarity

4. Approvals, as well as quantity and quality, are displayed.

5. Perform a demonstration

6. Using the Senses

7. Performing Tests

8. Goods handling

1. Getting People’s Interests Piqued

To begin, the salesperson must pique the customer’s attention. He can discuss the product’s unique characteristics, such as durability, composition, and so on, in order to pique the customer’s interest in the goods. Customers are more drawn to items with brilliant colours and appealing forms and sizes. However, in order to pique the clients’ attention, the salesperson needs stress the distinctive aspects of the items, which are referred to as unique sales propositions (USP).

2. On-Time Presentation

The salesperson must constantly be on time and alert. He should be quick to present the items to the consumers, demonstrating his desire and readiness to assist them. The salesman’s approach leaves a positive impact on the clients, and their response is immediate and pleasant. If the salesperson has thorough product expertise, he may be swift and knowledgeable.

3. Presentation Clarity

To gain the clients’ trust, the salesman’s presentation should be clear and thorough in all aspects. A high level of clarity in the sales presentation clears the prospects’ minds of any remaining uncertainties regarding the goods.A clear and detailed presentation prevents the prospect from considering competing offerings. As a result, the salesperson should describe the product’s usage and functioning, as well as its price, durability, utility, and special features, if any. In the event of large articles, models and photos might be used to show them. Customers should be able to touch and feel the merchandise from time to time. Prospects will be more confident as a result of this. For example, in the case of eatables such as fruits, candies, cookies, and so on, prospects are provided little amounts or free samples to taste in order to satisfy themselves about the quality of these items.

4. Using the Correct Quality and Quantity

The salesperson must display the proper items in the exact size and quality that the clients demand. Customers occasionally inquire about a specific brand or article’s quality. A good salesperson always showcases the brand or quality of the product the customer desires. When a sufficient range of items is displayed to the buyer, he will be able to choose from them. It’s worth noting that displaying too many types might be confusing, while displaying too few kinds may not be enough to persuade clients.

5. Perform a demonstration

If the salesperson displays or exhibits the qualities of the goods to the consumers, he can better pique their attention and raise their desire. Because demonstration is a vital aspect of a successful presentation, it undoubtedly produces a favourable image in the thoughts of the buyers. Because a spoken presentation might often fail to persuade a prospect, a demonstration increases the customer’s attention significantly. As a result, to effectively persuade the consumer, the salesperson might emphasise the product display. The client remembers and understands such communications for a long time because of the spectacular display of the product or service.

6. Using the Senses

It is critical for the salesperson to ensure that the approach he presents appeals to at least one of the five senses: sight, touch, hearing, smell, and taste. A presentation should directly appeal to all or part of the clients’ senses, resulting in a desire to acquire them. It can be seen, felt, smelt, and tasted in the case of consumables. It is simple to sell a product after it has been discovered to appeal to one or more of the buyers’ senses. relevant items of the exact size and quality that the clients require Customers occasionally inquire about a specific brand or article’s quality.A good salesperson always showcases the brand or quality of the product the customer desires. When a sufficient range of items is displayed to the buyer, he will be able to choose from them. It’s worth noting that displaying too many types might be confusing, while displaying too few kinds may not be enough to persuade clients.

7. Performing Tests

The results of product tests significantly boost prospects’ trust. To establish the product’s claim and excellence, the salesman might recommend a variety of standard tests.

8. Goods Handling

Words aren’t always enough. As a result, the salesperson should both handle the product and enable the prospects to handle it. Before making a purchase, potential purchasers may have a strong need to handle the merchandise. This holds true for everyone. The prospect checks that the product is worth processing, as well as in terms of pricing and claims, by touching it personally. The salesman appeals to the senses of touch and sight by enabling the buyer to handle the product.

THE APPLICATION OF TECHNOLOGY IN SALES

Many sales managers and teams are virtually always plugged into their displays, gadgets, applications, and internet tools these days.

One hazard is succumbing to the temptation of being an armchair quarterback who never leaves the couch and fails to form relationships. Relationships are still fundamental to sales (which entails personal encounters with customers) and sales management, no matter how much technology we rely on (which involves personal interactions with the sales team).

Another risk is to be frightened by technology and fail to properly utilise its potential. Because technology in sales might be daunting, it’s important to realise that you don’t have to embrace every new innovation as a manager. Instead, concentrate on implementing the technologies that will result in the greatest improvements in performance and proLet’s look at some fundamental technological tools and how sales managers may utilise them to boost their sales success.

1. Customer Relationship Management

The majority of sales businesses now employ a CRM system. CRM helps sales managers to follow transactions as they travel through the pipeline and gives improved visibility into sales possibilities. Sales managers may increase forecast accuracy by monitoring these prospects and reviewing stage, likelihood, and velocity.

However, you’re not getting the most out of CRM if you’re only utilising it to get insight into sales possibilities and generate improved sales projections. A sales manager isn’t using CRM’s power to raise win rates until they leverage insights from CRM data to actively teach reps (i.e. deal coaching).

2. Face-to-Face Video Conferencing

Video conferencing used to need the employment of large, cumbersome, and expensive equipment. Anyone may now participate in a video conferencing call. For sales managers whose salespeople work remotely, this has proven a huge benefit.

Many sales managers, however, still pick up the phone or send emails to their agents as a default. Don’t underestimate the importance of video technology. On a video conferencing conversation, body language, facial expression, and energy level are all visible, however on a regular phone call, they are disguised.

3. Virtual Education

To develop their talents, salespeople no longer need to attend in-person events or attend classroom training. Sales managers may give salespeople with options to interact with sales training at any time, from practically anywhere, thanks to virtual learning platforms (VLT) and Learning Management Systems (LMS).

The idea, once again, is to use these tools to reinforce and improve coaching and group cooperation. It’s not enough for salespeople to log into an LMS, do a few quizzes, and then go. To develop their selling abilities, salespeople still want direct involvement and feedback from supervisors.

4. Cellular Devices

Today’s salesmen use a variety of mobile devices, not simply phones. They’re utilising iPads, computers, and other gadgets to assist them on a daily basis while selling.

For example, sales acceleration software from QStream (one of our partners) may transmit questions in the form of real-world sales scenarios to a salesperson’s mobile device. Managers may see how successfully their sales staff is grasping the skills and ideas by having salespeople provide replies. Because sales managers can detect skill gaps and customise coaching efforts accordingly, this reinforces selling abilities in a very practical way.

5. Social Media Sites

As more millennials enter the sales force, social technologies are receiving a lot of attention. Sales managers, in my opinion, can give much-needed direction to salespeople who are attempting to use too many platforms at once. Focus on building a high-quality presence on the primary social networks that your target clients use instead of several networks. LinkedIn and Twitter, for example, have shown to be extremely effective for B2B sales.

All of these technological solutions enable sales managers to communicate with their sales staff more frequently and effectively.

Any sales manager’s role is to lead, manage, and motivate salespeople. This necessitates sales managers being visible and establishing personal interactions with individual sales people. You won’t be able to do it efficiently if you spend all of your time in front of a screen.

Most significantly, sales managers must develop into excellent instructors who can assist their salespeople in improving their selling skills. To be an effective sales coach, you must see your salespeople in action rather than simply collecting statistics on their actions and sales calls. We should go on sales calls with them and study how they connect with clients. This will allow you to see their strengths and shortcomings, give criticism, and assist them in developing the necessary abilities. You will see a significant boost in sales performance if you provide continual sales coaching.

Role of technology on sales

Definition

Sales management is the process of planning, staffing, training, managing, and regulating organisational resources in order to achieve an organization’s sales goals in an effective and efficient way. Organizations are powered by revenue, sales, and sources of finances, and the management of that process is the most vital role.

A Brief History

Electronic Funds Transfer (EFT) was invented in the 1970s and is used by the banking sector to send account information across secure networks.
Electronic Data Interchange (EDI) for e-commerce within firms — Used by businesses to communicate data from one business to another in the late 1970s and early 1980s.
1990s: the World Wide Web on the Internet provides simple technology for publishing and disseminating information – Makes doing business cheaper (scale economies) – Enables a wide range of commercial operations (economies of scope)

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The Impact of Technology on Sales

Technology is helping retail enterprises to become better prepared in the modern economies of the globe, with the benefits being ultimately client oriented. Technology advancements will enable firms to become more cost-effective, visible, and better product delivery throughout the supply-retailer customer chain. Because of the vast and positive benefits of technology, the future role of technology in the economy might have a significant impact.

There are three major kinds of hardware and software products that have become practically indispensable in retailing:

Customer Interfacing Systems

(a) Scanners and Bar Coding: Scanners and bar coding are used to identify an item, and pre-stored data is used to compute the cost and provide the total bill for a customer. For example, Big Bazaar and Monika Supermarket.

b) As a consumer interface, the Internet is fast growing, decreasing the necessity for a customer to physically visit the shop. For example, Walmart and Asian Paints.

c) Credit card payment has become extremely common, allowing for a quick and simple payment process. A new advancement in this field is electronic cheque conversion, which converts a cheque electronically by transferring transaction information to the store and the consumer’s bank. For example, ebay and Times Shopping.

2. Support Systems for Operations

(a) ERP System: Various Enterprise Resource Planning (ERP) vendors have created retail-specific ERP systems that assist in the integration of all processes, including warehouse, distribution, front and back office shop systems, and merchandising. An integrated supply chain aids the merchant in keeping stock, receiving supplies on schedule, avoiding stock-outs, and so lowering costs while providing better service to the client.

It contains the following features: – Inventory management software. – Assists in the analysis of various departmental operations. – Assists in reducing lead times by automatically placing orders.

(b) Customer Relationship Management (CRM) Systems: Retailers now have genuine access to customer data because to the advent of loyalty programmes, mail order, and the Internet. Retailers may use data warehousing and mining technology to make sense of their customer data and apply it to their company. It contains the following: – make use of a database management system (DBMS) – Every query is logged for future strategy improvement.

(c) Advanced Planning and Scheduling Systems (APS): APS systems may increase management throughout the supply chain, from raw material suppliers to the retail shelf. They allow operations like long-term budgeting, monthly forecasting, weekly manufacturing scheduling, and daily distribution scheduling to be consolidated into a single overall planning process utilising a single set of data.

3. Strategic Decision-Making Aids

a) Location of the Store Residents’ demographics and purchasing habits might be utilised to evaluate several potential locations for new establishments. Today, software programmes assist retailers not just with location considerations, but also with store sizing and floor-space decisions.

b) Visual merchandising: The store manager’s gut instinct on how to put and stack things in a store is no longer used. He now has access to a bigger number of visual merchandising tools to assess the impact of his stacking alternatives.

Advantages

1) Market penetration has increased.

2) Assists in cost reduction.

3) Sales executive surveillance

4) The use of loss prevention technologies such as burglar alarms and CCTV to deter shoplifting.

5) Real-time data aids in the automated placing of orders.

6) Examining historical data in order to forecast the future and design future tactics.

7) Workforce development.

8) Supply Chain Management that is effective.

9)Successful customer relationship management.

Disadvantages

1. Initial Investment: New technologies might have a substantial initial investment. In comparison to the cash investment necessary to buy technology, hiring new personnel might be comparatively inexpensive in the near run. A new employee usually works for a few weeks or a month before being paid, which means the employee earns money before the firm needs to spend money. Before technology can help with manufacturing, it requires a significant upfront investment.

2. Teaching Costs: Businesses that install new technology must cover the costs of training employees on how to utilise it. In the short run, upgrading from an existing technology to a new one reduces productivity. New technologies may not always be more efficient than older ones, resulting in squandered resources and training hours.

Despite the fact that updates are available, many organisations choose to run their computers on obsolete operating systems and applications. Converting to new software involves time and money, and the benefits aren’t always obvious.

3. Unemployment: With technology, one person may be able to generate the same amount as two or three people without it. Certain jobs may become outdated or redundant as a result of increased productivity, resulting in layoffs and job losses. Furthermore, the cost of maintaining new technology is frequently lower than the cost of paying for a comparable level of labour productivity once the initial cost of installing new technology has been paid. Large firms find technology appealing because of the long-term savings, often at the expense of labour.

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Market Research

May 25, 2022 / anurooba1999anura@gmail.com

Definition

Market Research entails conducting research and analysing the market for a certain product or service, as well as looking into client preferences. An examination of numerous client capacities, such as investment characteristics and purchasing possibilities. Market surveys are techniques for gathering direct input from a target audience in order to better understand their traits, expectations, and needs.

Marketers create innovative and interesting ideas for forthcoming products and services, but there is no guarantee that these strategies will be successful. Marketers must establish the category and attributes of products/services that target consumers would readily accept in order for these to be successful. A new avenue’s success can be ensured by doing so.

Most marketing managers rely on market surveys to get data that will help them kickstart their market research. In addition, the information gathered from these surveys can help with product marketing and feature enhancement.

Market surveys gather information about a target market, such as price patterns, consumer needs, competition analyses, and other relevant information.

What Is the Purpose of a Market Survey?

Obtain important consumer feedback: The market survey’s main goal is to provide marketing and company managers with a way to gather essential information about their customers so that existing customers can be kept and new ones can be recruited.

Understand client tendency toward purchasing items: Information such as whether customers would spend a specific amount of money on their products/services, customer inclination levels toward new features or products, what they think about competing products, and so on.

Enhance current products and services: A market survey may be used to improve existing products, examine customer satisfaction levels, and obtain information about their market perceptions, as well as to create a buyer persona utilising data from an existing client database.

Make well-informed company judgments: Market survey data is useful for making big changes in the firm, reducing the amount of risk associated in making critical business decisions.

Templates for Market Research

1. Product Surveys: New product/concept testing survey templates include questions to help you learn more about the items and concepts you’re testing. These survey questions were compiled by market research professionals and can assist in determining whether items or features will be successful in a certain market.

2. Conference Feedback Surveys: Templates for conference feedback surveys include questions that can be asked to conference attendees. Implementing recommendations from these surveys, such as better overall conference management, enhanced IT infrastructure, greater content coverage, and other aspects, can help an organisation produce better conferences.

3. Focus Group Survey Templates: Focus group survey templates may be used both during and after the focus group recruiting process. With this existing survey form, you can simply gain insights from a committed group of 8-10 individuals.

4. Hardware And Software Surveys: Hardware and software survey templates include editable questions on software and hardware product evaluations, pre-installation procedures, technical documentation quality, and other topics.

5. Website Surveys: Website survey templates may be customised according to the application and include questions about website consumer feedback, visitor profile information, and online retail information, among other things.

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The Importance of Market Research

There are five elements that demonstrate the significance of doing a market study.

1. Recognizing the target market’s demand and supply chain: A product that is produced with the target market’s demand and supply in mind is more likely to succeed. Marketers may gain insights on market capacity to absorb new products and concepts in order to produce customer-centric products and features in this manner.

2. Creating well-thought-out marketing plans: An organization’s target market, especially a well-established one, is the entire world. Data from the target market may be obtained through rigorous market research, which includes market surveys and segmentation, and used to develop concrete and long-term marketing strategy.

3. Determine consumer expectations and needs: Customer acquisition is at the heart of all marketing initiatives. Customer satisfaction methods such as Net Promoter Score, Customer Effort Score, Customer Satisfaction Score (CSAT), and others are required by all small and big enterprises to collect feedback from their target audience on a regular basis. Customer feedback may be analysed to determine the customer’s experience, contentment, and expectations, among other things.

4. Accurate product launch: Market surveys are helpful in determining where new goods or services should be tested. Market surveys give marketers a way to assess the likelihood of new items succeeding and make modifications to their product strategy based on the input they get.

5. Collect data on client demographics: Customer demographics are at the heart of every organisation, and market surveys may be used to collect detailed and sensitive information on customer demographics such as race, ethnicity, and family income.

Market Research Methodologies

There are several sorts of market surveys, of which we will discuss the top ten in order to obtain information from consumers about their desires, expectations, and thoughts on competition.

Each of these market surveys takes a unique approach and has a significant influence on numerous parts of a company.

1. Market surveys for segmentation: An organisation may identify existing and prospective consumers and determine why customers have selected their products/services and prospects have not. This might lead to market segmentation and analysis that is more systematic.

2. Market research to learn more about various facets of the target market: Gather data on market size, demographics such as age, gender, and family income to create a roadmap that takes into account the market’s growth rate, positioning, and average market share.

3. Market research to learn more about the purchasing process: What factors influence a customer’s decision to buy? What variables influence the conversion of product awareness to sales? This sort of market research reveals awareness, information, a free trial, a purchase, and a repeat buy.

4. Market surveys to create a buyer persona: These surveys are used to create a buyer persona by learning about a customer’s interests, inclinations, and purchasing capabilities.

5. Market surveys to determine customer loyalty: What is the level of consumer loyalty toward a company? A market survey can be used to get the answer to this question.

6. Market surveys to evaluate a new feature or concept: Market-compliant features and concepts are critical for a business to incorporate. By conducting a market survey to determine which features to launch, all teams engaged in the feature development process will be able to do so with adequate research.

7. Market research for competitor analysis: Healthy competition is usually beneficial to a company’s growth. Market surveys conducted with the goal of competitor analysis will yield information on how the target market evaluates the organization’s products/services in contrast to those offered by competitors.

8. Market research to determine the impact of sales efforts: Because sales activities are the lifeblood of every business, it’s critical to keep track of them. Market surveys for sales activities will result in a report detailing the impact of sales activities, if they need to be increased in frequency, and any adjustments that the audience believes should be made to the sales process.

9. Market research to determine pricing for new products and services: Product affordability is another factor that influences the market for businesses. Price ranges, product versions to appeal to a variety of price points, target clients for each product, and so on.

10. Market surveys to assess customer service: Good customer service may lead to higher levels of customer satisfaction. Factors such as the length of time it takes to address concerns, the breadth of improvement, and customer service best practices, among others.

IMPORTANCE OF MARKET SURVEY TO SALESMAN AND PRODUCER

1. Increased production of sales

To begin with, market research gives a firm vital information on how successful its product or service is likely to be, the best pricing to set for the product or service, and the type of consumers who are most likely to buy or consume the product or service. All of the information gathered aids in increasing sales.

2. Gaining a better understanding of the target customer

Customers who are being targeted might be present or future customers. A thorough market analysis may dispel any questions about potential customers’ ages, genders, and geographic locations.

Furthermore, a thorough examination of devoted clients will reveal what further your company has to accomplish and what items it should create in order to keep them.

Brian Cornell, the CEO of Target Retail Store, had gone out on his own with customers, investigating one of the company’s stores, incognito. That is how crucial it is to be familiar with them.

3. Pattern of customer behaviour

This is a continuation of the preceding point. It is actually a sophisticated study that can provide a significant depth of client requirements. Customers’ behavioural patterns may be analysed using advanced software technologies such as Big Data, Hadoop, and Google Analytics, among others. And once this pattern is discovered, it can be used to create far more refined and tailored goods for its target clients.

“E-commerce enterprises utilise Big Data in two ways,” AsheetMakhija, IBM India/South Asia’s country head for information management, explained. The first is to look for trends in historical consumer behaviour, and the second is real-time analysis, which involves reacting when a client is buying online.”

4. Competitor analysis

“Know your adversary and know yourself,” Sun Tzu reportedly remarked, “and you will never be beaten in a hundred fights.” We said at the outset of the post that monopoly does not exist in today’s world. Every firm, no matter how big or small, faces stiff competition. Researching the market and its potential rivals might reveal tactics that can assist you either stifle your competitors’ growth or go ahead of them.

Most significantly, it will allow your company to constantly update and improve the quality of its goods and services.

5. Detailed Segmentation-Targeting-Positioning (STP)

Once the foregoing objectives have been achieved, effective segmentation, targeting, and positioning may be implemented. A thorough market analysis of segmentation based on location or demographics might help you go forward with your company plan. It thereby decreases the overhead of targeting and narrows down the best consumer base. Finally, market research has made situating a product in the minds of customers a calk walk.

6. Help people make smarter decisions

After a market study is concluded, with all of the expertise and improved facts at hand, it may surely aid in healthy decision making.Every facet of a business, from finance to marketing to procurement, can be gathered in a timely manner. Furthermore, it can hasten the finish of a project with a certain outcome.

7. Sales forecasting and selling operations that are more precise

The primary goal of sales forecasting is to maintain an optimal inventory level and govern the demand-supply balance, which may be accomplished through market research. For this, techniques such as the sales force estimate approach or the Jury method are frequently utilised. After sales forecasting, new means of marketing current items can be devised, as well as the manufacture of alternative goods for sale. Market research may also be used to locate new sales territory.

“The greatest way to sell yourself to others is to sell yourself to others,” Napoleon Hills once said. To sell oneself, you must be aware of current trends and market opportunities. As a result, thorough market research is critical for sales forecasting.

8. A well-balanced end-to-end communication mix

This is critical for any business. A thorough market analysis of the communication mix can effectively close the gaps. Furthermore, it may effectively convey the media mix and clearly communicate a company’s goals to end consumers. It’s also a fantastic resource for ensuring that adverts are perfectly tailored to attract customers.

9. Ensure a smooth new product launch

When a new product is launched, various issues such as pricing, utility, and feasibility are considered. Furthermore, precise market research must be conducted in order for the product’s penetration to be carried out in a far-fetched manner.

If market research is not conducted, especially for new products, be prepared for a bumpy ride. Or, in the worst-case scenario, shut down!

10. Improved audience targeting and consumer management

The most significant benefit of market research in product or service marketing is that the many instruments used in marketing campaigns, such as face-to-face interviews, questionnaires, conversations, and meetings, enable a wide range of target audiences to be reached.

To summarise, a business’s success or failure is solely determined by the marketing strategies it employs, whereas market research of products and services provides various avenues for implementing the best marketing strategies that can help a company compete, grow, succeed, and even reach greater heights.

Market research helps to reduce the time it takes for a product to reach its target audience. In addition, market research assists in the precise analysis of current needs as well as the evaluation of future consumer expectations, resulting in a higher level of customer satisfaction.

11. Prosperous Business Development

When done correctly, product and service marketing research leads to an increasing sales trend as well as superior customer management, which leads to increased sales.As a result, the company’s growth and development are accelerated.

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Sales Forecasting: Full Overview

May 25, 2022 / anurooba1999anura@gmail.com

Sales forecasting is the process of predicting future sales. Every manufacturer estimates the sales that are expected to occur in the near future.

It concentrates the activity of a corporate firm. In the lack of a sales forecast, a company must operate on a haphazard basis.

Meaning

A businessman who has put a significant amount of money into his venture cannot afford to operate recklessly.

His manufacturing and sales efforts must be planned. Forecasting enables a company to function according to a set of guidelines, i.e., methodically.

Importance of Sales Forecasting

1. Sales forecasting allows a company to function in a methodical manner.

2. Forecasting allows a production manager to set goals for his employees.

3. It allows the sales department to assign roles and tasks to each salesperson.

4. In the lack of a sales forecast, a company firm may operate without focus, resulting in resource waste.

5. It aids in the reduction of needless expenditure, allowing items to be sold at a reasonable price.

6. A sales forecast helps all of the company’s departments to collaborate and coordinate effectively.

7. Controlling performance is simple because targets are specified for each individual and department.

8. Sales forecasting is essential for budgeting.

9. It aids in determining the real manufacturing capacity necessary.

10. Product mix selections are aided by sales forecasts. It allows the company to determine whether to add a new product to its portfolio or to discontinue a failed one.

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Methods of sales forecasting

1. Jury of Executive Opinion.

2. Sales Force Opinion.

3. Test Marketing Result.

4. Consumer’s Buying Plan.

5. Market Factor Analysis.

6. Expert Opinion.

7. Econometric Model Building.

8. Past Sales (Historical Method).

9. Statistical Methods.

1. Executive Opinion Jury

This is the oldest technique of sales forecasting. The predicted sales are determined by one or more of the executives who are seasoned and knowledgeable about market dynamics.

The executives are in charge of estimating sales statistics based on forecasts and previous experiences. All factors, both internal and external, are considered. This is a committee-style method.

This approach is straightforward since it combines experience and judgment to arrive at a sales projection figure. When there are a lot of executives, the sales prediction is made by averaging their estimations.

Merits

(a) It is a simple and quick procedure.

Demerits

(a) It isn’t based on factual information.

(b) Making a final decision is challenging.

(d) Breaking down projections into goods, markets, and other categories is tough.

2. Sales Force Opinion

Salesmen or intermediates are expected to estimate sales in their respective regions for a certain period under this approach.

Salespeople are in constant contact with customers and have an excellent understanding of future demand trends.

As a result, all sales force estimates are processed, merged, and adjusted, and a sales volume estimate for the whole market for the specified period is created.

Merits

(a) Expert knowledge is applied.

(b) Salespeople are confident in their ability to reach their quotas.

(c) This strategy makes it easier to split things down into categories like items, territory, customers, and salespeople.

Demerits

(a) The ability of salespeople is critical to success.

(a) There is no broad view.

3. Marketing Test Results

In the market test approach, items are presented in a small geographic region and the results are analysed. S

ales forecasts are built using this outcome as a starting point. This test is run as a sample on a pre-test basis to better evaluate market reaction.

Merits

(a) The system is trustworthy since the forecast is based on actual data.

(b) Management can see flaws and take corrective action.

Demerits

(a) Markets are not all created equal. However, the research is based on a segment of the market.

(b) It is a lengthy procedure.

4. Consumer Buying Plan

Consumers are contacted as a source of information to learn about their expected purchases within a specific time period under certain conditions.

When there are few consumers, this strategy is appropriate. For industrial items, this sort of forecasting is commonly used.

It is appropriate for sectors that manufacture expensive items for a small number of purchasers, such as wholesalers, retailers, and potential consumers.

A face-to-face survey or survey method is used to perform a survey.

It’s because things change all the time, yet customer behaviour and purchasing decisions do not.

Merits

(a) It is feasible to obtain firsthand knowledge.

(b) The user’s purpose is understood.

Demerits

(a) The customer’s expectation cannot be precisely assessed.

(b) It’s tough to track down genuine customers.

(d) Long-term forecasting is impossible to do.

f) The system is expensive.

(f) Purchasers have the option to modify their minds.

5. Market Factor Analysis

The performance of various market elements might influence a company’s sales. It is possible to discover the main elements that influence sales.

Forecasting should be done by examining the behaviours of the components. Correlation is a statistical study that examines the degree to which two variables vary in relation to one another.

The term’relationship’ is significant since it implies that the variables under investigation are linked in some way.

Regression analysis, on the other hand, is a statistical tool that allows us to estimate or forecast unknown values of one variable based on known values of another variable.

For example, you may produce a text book on “Banking” that is associated with many colleges. Each student’s maximum intake capacity and the medium in which they are taught are known. Is it a required or elective subject?

You may be able to declare the likely copies to be printed by gathering all of these facts and taking into account the sales activities of promotional activity.

The identification of acceptable market parameters is crucial to the effective application of this strategy. It’s also crucial to keep the number of market components to a minimum.

Price, competition, advertising, disposal income, buying habits, consuming habits, consumer price index, demographic change, and other factors must all be considered by demand decision makers.

Merits

(a) It is a reliable procedure.

(a) The market factor is thoroughly examined.

Demerits

(a) It is expensive.

(b) It takes a long time.

6. Expert Opinion

A variety of consulting firms have branched out into the field of sales.

The consultation firm employs subject-matter specialists in the relevant discipline. Dealers, trade groups, and other organisations fall within this category.

They could be able to do market research and have ready-to-use statistical data. The opinions of such specialists may be used by businesses.

The organisation may thoroughly examine these viewpoints and make a reasonable forecast based on them.

Merits

(a) Forecasting is rapid and low-cost.

(b) It’ll be more precise.

Demerits

(a) It may not be trustworthy.

(b) Forecasting success is contingent on the expertise of experts.

7. Developing Econometric Models

This is a mathematical method of research that is a great technique to predict sales. This strategy is better suited to the marketing of long-lasting items.

It is presented in the form of equations, which depict a set of correlations between various demand-determinating market elements.

Sales are forecasted by studying market variables (independent variable) and sales (dependent variable).

This approach isn’t completely reliant on correlation analysis.It has a lot of potential, but it can only be used if all of the necessary information is available.

For solid forecasting, market elements that are more accurate, rapid, and less expensive might be chosen.

8. Sales in the Past (Historical Method)

The use of statistical and quantitative tools can help augment personal judgement in sales forecasting. Past sales provide a solid foundation upon which future sales may be calculated and forecasted.

According to Kirkpatrick, today’s sales activities flow into tomorrow’s sales activities; in other words, last year’s sales are carried over into this year’s sales.

This method involves adding or subtracting a percentage from the previous year’s sales (s). This strategy is ineffective for new industries and goods.

(a) Simple Sales Percentage: Sales forecasts are created using this approach by simply adding a flat percentage of sales to anticipated sales as shown below:

(b) Time Series Analysis: Time series analysis is a statistical technique for examining historical data. Long-term trends, cyclical shifts, seasonal variations, and irregular fluctuations are all isolated.

Past sales statistics are used as a starting point, then analysed and updated to account for future patterns. We can analyse the data and estimate future patterns and trade cycles using historical data and reports.

Merits

(a) There is no guesswork involved.

(b) The procedure is straightforward and low-cost.

Demerits

(a) ‘Market is dynamic’ is not taken into account.

(a) There is no provision for sales activity upswings and downswings.

9. Statistical Procedures

Statistical approaches are seen to be superior tools for sales forecasting since they are more reliable than other methods.

The methods are as follows: (i) Trend Method (ii) Graphical Method (iii) Time-Series Method:

(a) The freehand technique

(b) The semi-average method

(d) The least square method

(iv) The correlation method

Merits

1. It is a factual prediction.

2. It does not require any guesswork.

3. It’s easy to use.

Demerits

1. It overlooks market circumstances.

2. It does not account for the possibility of unforeseen events.

Criteria of a good forecasting method

1. Believability

The management should have a thorough grasp of the approach chosen and be confident in its application. Only then will an appropriate interpretation be established.

The plausibility requirements, according to Joel Dean, can frequently improve the correctness of the outcome.

Accuracy necessitates the executives’ acceptance of the outcomes. Experienced executives will have a good sense of the market and will be able to participate successfully.

2. Conciseness

The approach adopted should be basic enough for the executives to understand.

If the management does not comprehend what the forecaster is doing, complex mathematical and econometric processes are less acceptable.

3. Economic situation

Cost is a major factor to consider, but it should be balanced against the relevance of predictions to the organisation.

It’s pointless to spend a lot of money to achieve high levels of accuracy if the prediction isn’t important to the company.

4. Accessibility

The instantaneous availability of data is a must in any forecasting process.

The method should produce a speedy and useful outcome. A delay in the outcome will have a negative impact on the managerial choice.

Limitations of Sales Forecast

1. The tastes and preferences of purchasers change throughout time. The projections might be rendered worthless if the purchasers’ preferences alter abruptly.

2. The economic conditions in any country are likewise not steady. Money’s purchasing power, desire to save and invest, and so on,are some of the key economic elements that influence sales forecasts.

3. A state’s political situation has an impact on sales forecasting. The government’s policies on business change often. The government’s unexpected increase in excise duty or sales tax may have an impact on sales.

4. The arrival of rivals may have an impact on sales. If customers find rivals’ products to be superior, a dominant corporation may lose its monopoly status.

5. Scientific and technological advancements may render current technologies outdated. As a consequence, items that are now popular may lose popularity, while demand for products manufactured using cutting-edge technology would rise.

This is especially true in the market for electronic products, computer hardware, software, and other such items.

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Sales Quota : Types

May 25, 2022 / anurooba1999anura@gmail.com

A sales quota is a numerical target set for a sales unit over a set period of time. A salesperson, territory, branch office, area, or distributor is an example of a sales unit.

Sales quotas are used to organise, control, and assess a company’s sales activity. Quotas describe intended performance goals for sales volume, costs, gross margin, net profit, selling and non-selling activities, or some combination of these elements, as benchmarks for evaluating selling effectiveness.

Sales quotas serve as a source of motivation, a foundation for reward, remuneration, and criteria for evaluating a salesperson’s performance, as well as revealing the firm’s strengths and flaws in the selling structure

. Quotas are mechanisms that are used to guide and regulate sales activities. Their performance is determined on the type, quantity, and accuracy of marketing data utilised in their creation, as well as management’s ability to operate the quota system.

Quotas are developed based on information gathered from sales predictions, market and sales potential research, and cost estimations for successful outcomes.

Accurate statistics are crucial for a quota system’s efficacy, but they aren’t enough; persons in charge of quota setting must also have judgement and administrative abilities.

Quotas that are well-managed and based on extensive market information are excellent tools for managing and regulating sales activities.

What is the purpose of the sales quota?

i)To establish performance evaluation criteria: Quotas are used to determine which salespeople, territories, other sales organisation units, or distribution outlets are performing at an average, below average, or above average level.

They serve as benchmarks for evaluating sales success. When quotas are compared to sales performance, management can see where the weak and strong places are, but the causes for the differences must be investigated further.

ii) To offer salespeople with objectives and incentives: Quotas provide salespeople, distributors, and anyone involved in selling operations with goals and incentives to reach a specific level of performance.

Many firms employ quotas to provide their salespeople the motivation to exceed their quotas and/or be recognised for excellent performance by raising their income through commissions or bonuses. To be effective motivators, sales quotas must be viewed as reasonable, achievable, and, to some extent, surpassable.

ii)To direct and control salespeople’s activities: Quotas allow managers to direct and control salespeople’s activities.

Salespeople are in charge of particular tasks, such as making a certain number of client calls per day, calling on new accounts, offering a certain number of demos, and closing the firm’s account.

If the salespeople do not meet their quotas, the corporation might take corrective action to address the problem.

iv)To assess salespeople’s productivity, do the following: Quotas serve as a benchmark for evaluating the overall efficacy of salespeople.

The areas of operations where the sales team requires aid for enhancing productivity are found by comparing actual outcomes with specified quotas.

v)To keep your selling costs under control, do the following: Quotas are often used to keep selling costs under control. Some businesses will only refund sales expenditures up to a particular percentage of their sales quota.

Others link expenditures to the salesperson’s pay in order to cut down on unnecessary spending. Profit quotas are set by using expense quotas.

vi) To create an effective compensation plan: Quotas are a critical component of a company’s sales compensation strategy.

Some Indian corporations pay commission to their salespeople only when they surpass their targets.

Companies may also utilise quota achievement as the basis for computing bonuses, in whole or in part.

If the salesman fails to meet the minimal quota, he will not be eligible for a bonus.

vii) To assess the success of sales contests: Sales quotas are typically employed in combination with sales contests.

‘Performance against quota’ is the most common foundation for awarding prizes in sales competitions.

By basing prizes on percentage of quota fulfilment as a common denominator, sales competitions are more potent incentives if all participants believe they have a more or less equal probability of winning.

As a result, mediocre salespeople become above average performers.

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Types of quotas

Each firm’s quota is slightly unique due to differences in forecasting and budgeting methods, management philosophy, selling challenges, and executive judgement, as well as variances in quota-setting techniques.

Despite minor variances, quotas are divided into four categories:

(i) Sales volume quota

Sales volume quotas are the most widely utilised quotas. Quotas of this sort might be set for a single salesperson, a geographical region, a product line, or a distribution outlet, or any combination of these.

Sales volume quotas are also used to balance sales of slow-moving and fast-moving items, as well as across different consumer segments per sales unit.

The sales volume quota can be defined in terms of product units sold, rupee sales, or both on an aggregate and product-by-product basis.

For each product/customer, points are provided when they reach a specified threshold of sales in both units and rupees.

For example, a corporation may assign a value of 1 point to Rs. 1000, 2 points to Rs. 2000, and so on. At the same time, the corporation may give 3 points for product A unit sales and 5 points for product B unit sales.

Companies usually choose this technique because they are having trouble executing either rupee or unit sales volume quotas.

Unit sales volume quotas are beneficial in markets where product prices vary widely or if the unit price of the product is very high.

When a sales force sells numerous items to one or more categories of consumers, rupee sales volume limits are found to be appropriate.

(ii) Financial or budget quotas

Financial or budget quotas are set in order to achieve the required net profit while also keeping track of the sales expenditures.

In other words, it is established to control expenditures, gross margin, and net profit for various units inside the sales organisation.

Setting financial quotas has the goal of making it evident to salespeople that their professions entail more than just generating sales volume.

It makes employees more aware that the organisation exists to generate a profit. Expense quotas focus on aligning spending with sales volume, hence regulating gross margin and net profit contribution indirectly.

Gross margin or net profit quotas place a premium on margin and profit contributions, hence reducing sales costs indirectly.

Quotas for expenses: Some organisations create quotas for expenses connected to different levels of sales achieved by their sales force in order to make their sales staff aware of the need to maintain selling costs within realistic boundaries.

They also tie salary incentives to keeping spending below set levels to assure compliance.

It is difficult to estimate expenditure quotas as a proportion of sales in a consistent manner since sales are the consequence of selling chores that vary between sales territory.

Demotivation of the sales team is also a result of tight adherence to expenditure quota guidelines. As a result, expenditure quotas are frequently employed in conjunction with other forms of quotas.

Quotas for net profit: Net profit quotas are especially beneficial in multiproduct businesses where various items generate varied amounts of profit. Its focus is on salespeople making the best use of their time.

It is critical for management to ensure that its sales team does not spend more time on less lucrative items, since this would deprive the firm of the potential to generate more profits from its high margin products.

In other words, it should make sure that its salespeople spend as much time as possible with the most profitable customers.

Setting a net profit quota for its sales force can help them reach this goal by pushing them to sell more high margin items and less low margin ones.

(iii) Activity quotas

In competitive marketplaces, good sales performance necessitates the sales force’s ability to undertake both sales and market development operations.

The latter operations have long-term consequences for the company’s goodwill.

Some firms set quotas for their sales team in terms of specific selling activities to be completed within a particular period to guarantee that such key operations are completed.

Finally, the organisation must define a performance goal for the salespeople. The following are some of the most popular types of activity quotas used by Indian businesses:

• Number of prospects contacted

Number of new accounts created
Number of calls made to close out the company’s account
Number of dealers contacted
Number of service calls made
Number of demos performed the number of demonstrations held

The main benefit of activity quota is that it allows salespeople to be directed to undertake both urgent selling activities and critical non-selling but market development related tasks in a balanced and regular manner.

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(iv) Quotas for Combinations

Some firms find it advantageous to set quotas in a combination of the two or three categories outlined above, depending on the nature of the product and market, the selling duties that must be accomplished, and the selling obstacles that the company faces.

A substantial number of consumer and industrial products firms in India utilise rupee sales volume and net profit quotas, or unit sales volume and activity quotas in combination.

Characteristics of a good quota system

(i) Realistic attainability: A quota must be genuinely reachable if it is to motivate salespeople to put up maximum effort. The salesperson will lose motivation if it is too far out of reach.

(ii) Objective Accuracy: Quota management, regardless of the kind, should be linked to potentials.

Although executive judgement is important, it should not be the deciding factor.

(iii) Ease of understanding and administration: A quota must be simple to grasp for both management and salespeople. In addition, the system should be cost-effective to operate.

(iv) Flexibility: All quota schemes must be flexible enough. Changes in market conditions may force management to make modifications, especially if the quota term is longer than a year.

(v) Fairness: The persons involved regard a good quota system to be fair. For all salespeople, the burden imposed by quotas should be the same.

This does not, however, imply that quotas must be equal. There are differences in sales force potential, competitiveness, and ability.

Other Related Topics

Sales Management

May 24, 2022 / anurooba1999anura@gmail.com

Introduction

The term ‘sales management’ originally related to the supervision of salespeople. However, in today’s society, it has taken on a vital role.

Now, sales management included all marketing operations such as advertising, sales promotion, marketing research, physical distribution, pricing, and product merchandising, among others.

A layperson engages with a variety of transactions in terms of selling and acquiring products and services on a regular basis. The second individual persuades the first in these encounters.

As a result, selling can be defined as persuading people to fulfil their desire for the first one.

The person who does this act is known as a salesperson, and the consequence of this activity is known as sales, while sales-management supervises and controls the person’s operations.

Sales executives are professionals in today’s world. They create and implement efficient control methods as well as organise, construct, and sustain successful organisations.

A detailed study and a market-efficient qualitative and quantitative personal-selling plan are required by the experts’ approach. It necessitates the effective application of organisational concepts to sales activities.

Furthermore, the professional approach necessitates the capacity to install, run, and employ control methods that are appropriate for the firm’s position and goals.

Today, sales executives who can use a professional approach to sales management are in high demand. Salesmanship is a term used to describe a person’s ability to sell.

In other words, the terms “management” and “leadership” are interchangeable. Managers in industry must plan, forecast, lead, and control their staff in the same way as ministers do in states and at the federal level.

Running together, hand in hand, is the key to success here. Managers are the generals in charge of their followers’ armies.

Definition

A number of these perspectives are taken into account by the American marketers association’s (AMA) definition. Its definitions include: personnel planning, direction, and control, selling operations of a business unit, such as recruiting, choosing, training, assigning, grading, supervising, paying, and motivating, since all of these duties pertain to the sales force.

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Benefits of selling activities

The following are some of the advantages of selling activities:

(1) Societal benefits: Economic growth and full employment are essential for national development. The success of both of these objectives results in jobs and money for a country’s workforce.

Because of the arrival of computers and the elimination of outmoded technology, the number of people in need of work continues to grow, while some occupations are being removed.

If all individuals who want and expect work to get them, the economy must continue to grow its output of goods and services, which can only be done by strong government policies and efficient human resource management.

Equally crucial is the reality that an economy need individuals to sell the goods and services it produces.

Salespeople may be considered to be the lifeblood of a healthy economic system because of their tireless efforts to develop and increase demand.

If no one was selling their products, the vast number of people in factories and offices would be unnecessary.

(2) Consumer benefits: Professionals may not know every detail of a product, but they do know its main applications, limits, and advantages, allowing them to efficiently serve their customers.

An insurance agent, for example, can assess the dangers and risks that face a client’s company or home, analyse current coverage, and provide useful recommendations in order to remove coverage gaps or overlaps while also saving the customer money.

Sales engineers are competent to analyse technological challenges that may be faced by a company and provide appropriate solutions for building more effective operations.

Medical representatives may also assist the busy doctor by keeping him informed about new drugs on the market. There is practically no end to the number of salespeople who can assist customers.

(3) Advantages for businesses, salespeople, and customers: Customers are the end-users of the company’s product(s) and/or services, and all of these people in the marketing chain stand to gain from sales operations.

Only when a company’s sales exceed its costs can it be profitable.

The primary job of salespeople is to make a profit on the commodities produced by the company.

The creative salesperson seeks to infiltrate his region and uses appropriate means and tactics to sell products and/or services profitably. Non-selling actions of salespeople provide a variety of other benefits to businesses.

The field salesman is the appropriate individual to keep the organisation current or ahead of the competition.

As a result, he becomes a valuable source of field-intelligence by giving vital (and occasionally life-saving) information regarding the nature of rival activity as well as changing client wants.

The sales staff is also responsible for meeting the demands of clients who purchase the film’s product (s).

Most businesses cannot thrive just on one-time sales; they require recurring business. This is only achievable if the clients are treated with respect.

Elements of sales management

The following are the four essential principles of sales management:

(1) Planning: Starting a business is not something that can be done on the spur of the moment. Every salesperson or person responsible must prepare for the future and identify what has to be done.

And who will be the one to do it? The strategy must be founded on substantial market research, with all data double-checked at each level. After researching the overall market, the strategy should be examined for a specific sort of product.

Establishing a specialised manufacturing line to allow for diversity in production will give flexibility. The strategy should also be reviewed on a regular basis.

The plan’s specifics should be addressed with all of the department heads involved, as well as their subordinates who are responsible for carrying out their sections of the plan.

(2) Co-ordination: Co-ordination is all pervasive and permeates every function of the management-process.

For example, ill planning, departmental-plans are integrated into a master Plan, ensuring adequate co-ordination. Similarly, organizing starts by co-ordination wholly, partially inter-departmental and inter-personnel matters.

Co-ordination also helps in maximum utilization of human-effort by the exercise of effective leadership, guidance, motivation, supervision, communication etc.

The control-system also needs coordination. Co-ordination does not have any special techniques. Nevertheless, there are sound principles, on which to develop skills. It has a special need to help the staff, to see the total picture and co-ordinate their activities, with the rest of the team.

The sales manager has to encourage direct personal-contact, within the organisation, particularly where there is lateral-leadership. Harmony, and not discord, should be the guiding mantra.

In addition, one has to ensure free flow of information that is selective to the objectives of the business. No personal problems, arising from business operations are to be ignored, but solved through a free exchange of ideas. This is especially true in the case of the sales-force of any organisation.

(3) Controlling: The sales manager must review on a frequent basis to see if the sales operations are on track. He directs, leads, and inspires his subordinates in order to fulfil the business’s objectives.

He must take efforts to guarantee that people’s actions are in line with the organization’s aims and objectives.

The controlling system should allow for the analysis of the past, the identification of hazards, and the implementation of remedial actions so that similar issues do not arise in the future.

The controller’s job is to make sure that the stated goals, budgets, and timetables are met or followed to the letter. Procedures must be in place to bring failure to meet a goal to light.

(i) Prepare sales and market predictions;

(ii) Determine the amount of sales budget;

(iii) Determine the sales quotas for each salesperson;

(iv) Determine, review, and choose distribution channels;

(v) Organize an efficient sales force

(vi) Establish a sales-reporting system;

(vii) Establish a statistical sales-credit system;

(viii) Establish stock control system(s);

(ix) Review sales force performance

(x) Establish testing schedules on a regular basis.

Each salesperson in a large corporation is allocated a territory (not so big that it cannot be adequately covered). Each salesperson has a goal that is defined for a specified time period.

The control system is built based on the weekly and monthly sales data, which will generate records indicating whether a specific salesman is operating efficiently or not

(4) Motivating employees: Motivation is primarily a human resource topic. Its goal is to bring together diverse personalities into a cohesive one.

Knowledge of human psychology is required for this, as well as a grasp of behaviour patterns. This is especially true when it comes to salespeople. Only motivated salespeople can help the organisation reach its objectives.

Need and Importance of sales management

(i) To allow senior management to dedicate more time to policymaking for corporate growth and expansion.

(ii) To divide and assign authority to subordinates so that they can avoid doing their jobs.

(iii) To eliminate duplication of responsibilities and functions in order to avoid misunderstanding.

(iv) Assigning duty to each and every employee so that they may finish the entire task within the allotted time; if not, the individual must be held accountable.

(v) In the business unit, build a sales regimen.

(vi) To boost sales efforts.

(vii) To ensure that the sales staff is properly supervised.

(viii) The individual’s integration into the organisation.

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DEVELOPING SALES FORCE DECISION

1. Identifying the Ideal Client

Every time the company’s sales staff must do the work of personal selling. The salesperson makes a hasty call to potential consumers in the hopes of converting them into clients.

One of the disadvantages of requiring salespeople to make a certain number of calls every month is the risk of focusing on the quantity rather than the quality of the calls.

It is, however, more prudent to concentrate one’s efforts on a smaller number of superior calls.

They may now better arrange their day by focusing more of their time and effort on A=Excellent or B=Good Customers, with some time spent on the C=Fair and none on the D=Poor.

As a consequence, the ‘Call-rate’ may be better targeted on prospective prospects, with less time lost on interactions that are less likely to result in sales.

The creation of a hit-list that designates levels of attraction to potential clients may thus be a significant instrument for increasing sales productivity.

In the case of industrial items, standard industrial categories (SICs) can be used as the basis for consumer categorization.

This is especially useful if market research has shown which group/class in the categorization offers the best opportunities.

The corporation, on the other hand, may choose its own foundation to fit its own goals, objectives, and requirements. However, in order to maintain a tight and productive sales force, some level of selectivity is required.

There is no necessity for two bases to be identical. However, keep in mind that you should avoid targeting clients who your rivals are in a much better position to penetrate.

The following points must be regarded as a guide/salesperson for this base of categories:

I The firm’s size and/or consumption level (sales-volume).

(ii) Segments that cater to potential clients.

(iii) The goods, techniques, and manufacturing processes used by the company.

(iv) The buying-decision-makers’ personalities and/or motivating impulses (e.g., willing to purchase from large firms or from small firms only).

(v) The clients’ geographical location.

2. Recognize the Decision-Making Unit of the Customer (DMU)

A salesperson often works with a large number of consumers. Deciders, purchasers, influencers, users, and gatekeepers are among the primary actors in the selling process.

Each of them has a function to play, which is sometimes beneficial and other times might be a hindrance.

A successful seller must grasp how this unit works as a whole, as well as the duties that each member plays.

The problem becomes much more convoluted in large companies, because this decision-making body has a significant number of members (DMU).

Every single one of them must be communicated in some way. It is, however, impracticable, inefficient, and often just foolish for salespeople to call all of them.

It is advised that he reach the unit’s less important or accessible members through corporate literature, direct mailing, exhibits, and other means.

However, it is necessary to guarantee that: In each DMU member receives the appropriate quantity of information, neither too much nor too little.

(ii) He must concentrate on the buyer’s DMU’s most crucial and decisive members (customer).

(iii) The sales manager may keep a file on each of the company’s more potential clients, which should include yearly reports and published accounts, a scrapbook of published material about the company, corporate literature, and product specifications.

Details on the company’s structure; a “who’s who” of the company’s employees; and, ideally, a comparison of the firm’s performance to that of its competitors.

If the database is thorough and up-to-date, the salesperson will be dealing with a client with whom he or she has such a high degree of information that a real connection will be easy to form.

(iv) The sales manager, in collaboration with the other marketing, design, and integrated communication programme’ sub-departments, may compile a full list of DMU members.

Whatever sales method the salesperson uses, the goal should be to target each DMU member specifically those on whom they may have the most impact, in the most productive and cost-effective way possible.

We can also design an integrated communication campaign with DMU-members of these Companies if the sales department has a relatively limited number of major potential (key) clients.

Even though the overall catchments market consists of only a few dozen organisations, it is remarkable to see that a big percentage of enterprises do not care to obtain the most basic information about the client-company.

3.Observing the Top Performers

The Sales Force is a diverse group with many different characteristics. As a result, comprehensive uniformity in behaviour, attitude, and performance is nearly difficult to accomplish.

At one extreme, there are high-flyers, and at the other, sloggers; the former are energetic, creative, and effective; the latter may work hard, but results are not easy to come by.

However, by analysing individual salespeople’s performance, it is simple to label the top ten percent as stars, the next twenty percent as good, the next thirty as competent, and the remaining forty percent as ‘problem children.’

4. Sales Meetings(Conferences)

This is another another key route for sales force growth.

1)The “objectives” of such sales meetings are

2)To teach and develop individuals,

3)To inform and receive feedback,

4) To inspire and encourage, and

5) To give a shared platform for sharing experiences.

To be successful, a sales meeting should include the following elements:

(a) Venue: It should be held at a location where any extra information may be quickly obtained. The headquarters of the company, the Sales Manager’s head office, or the Regional Manager’s head office are all good locations.

The seating of the participants should be properly arranged, and an appropriate and “business-like ambiance” should be produced.

(b) Audience: The participants’ intellect level should be considered. This will aid in the selection and assignment of discussion topics to appropriate individuals.

(c) Timetable: A suitable agenda should be created with the needs of the meeting in mind. Participants should be informed about the agenda ahead of time.

(d) Regularity: The sales meeting should be held on a regular basis. National sales meetings and conferences are normally held once a year. As a result, the participants will be well-prepared.

(e) Activities: Work should be properly distributed so that everyone understands what to anticipate from whom.

The Convener should do a good job of ensuring that the Meeting has a “participative environment.” A little ‘Creativity’ on his side will go a long way toward assuring the meeting’s success.

5. Kerb-Side Meetings

These meetings attempt to provide a random assessment of a salesperson’s performance and are normally held once a month, taking into account a day’s work.

It should be assured that I the salesman will not be calling on his friendly clients on that day, and the appraiser’s presence will not affect the salesperson’s job schedule.

During the day, the appraiser must observe the salesman and make mental notes of his strong and weak points.

The appraiser and the salesperson deferred to a quiet area after the call(s) were completed for the day, where the work was methodically assessed; and correctly recorded and scored, on an appraisal-form.

It is critical to secure the salesman’s assent to such an appraisal-form. This will put him in the right frame of mind, and he’ll be more open to recommendations as a result. The following is a possible sequence for this evaluation:

(i) The appraiser commends the salesman’s skills;

(ii) The salesman is now asked to analyse the call(s), identify the problems that were not properly addressed and the reasons for this;

(iii) If the salesman fails to identify his weak areas, even after questioning, the appraiser tells him about them in very clear terms;

(iv) If the salesman fails to identify his weak areas, even after questioning, the appraiser tells him about them in very clear terms

(iv) Once the flaws have been identified, the appraiser obtains the salesman’s agreement on his flaws;

(v) The assessor next offers suggestions on how to overcome these flaws.

(vi) Any follow-up activity is then clearly called out;

(vii) Before parting, the appraiser gives a few encouraging words and ends on a positive note.

Such kerb-side sessions are quite beneficial for enhancing employee productivity, but they rely primarily on the appraiser’s aptitude and talents to spot problems and propose remedial solutions. However, because the process is costly, generalisations should be avoided.

6. Refresher Training

The refresher courses are normally offered once a year at the company’s headquarters.

The substance of the course is often based on input from I corporate activities; (ii) sales executives; (iii) market intelligence; (iv) sales meetings/conferences, etc., (v) product development, (vi) technical areas impacting the firm, etc. (since the last conference/meeting).

Such courses ensure that salespeople are appropriately equipped to meet competing issues with confidence on a regular basis.

7.Bulletins on Sales

Last but not least, sales bulletins are used to maintain training and growth. It’s an effective way to keep salespeople informed about current events and trends. While the salesmen are at work, the information reaches him via bulletins, as well as when it is urgently necessary.

There is no time wasted waiting for the next sales meeting or conference. The wording used in the bulletins, on the other hand, should be concise and to the point in order to pique the salesman’s attention while also being easily understood by the receiver.

Other Related Topics

What is Salesmanship? – Full Concept

May 24, 2022 / anurooba1999anura@gmail.com

INTRODUCTION

Although the terms “personal selling” and “salesmanship” are frequently used interchangeably, there is a significant distinction.

The term “personal selling” refers to a larger idea. Personal selling may or may not include salesmanship, but it is never the entire picture.

Personal selling is a method of implementing marketing programmes, together with other major marketing factors such as price, advertising, product creation and research, marketing channels, and physical distribution.

The general goal of marketing is to bring a company’s products into touch with markets and to facilitate lucrative product-for-money exchanges.

The goal of personal selling is to connect the appropriate items with the right consumers and transfer ownership.

Example:

Once upon a time, your friend went to a readymade garment shop to get a pair of pants for his younger brother.

He was shown the current clothing line by the salesperson. He had also acquired one for himself by the time the deal was completed. The influence of salesmanship was the cause for such an unanticipated purchase.

The counter salesperson initially gauged his interest in the new fabric before persuading him to purchase it.

Salesmanship or personal selling is the process of recognising our needs, activating them, and then meeting them by selling us a product.

It is a method of aiding and encouraging potential clients to purchase a product in a face-to-face setting. In other words, selling via human connection is what salesmanship is all about.

According to Stroh, “salesmanship is a direct, face-to-face, seller-to-buyer influence that may present the information essential for marketing a buying choice; or it can employ persuasive psychology to support the development of a buying decision.”

Salesmanship is a seller-led effort that provides prospective customers with information and encourages or persuades them to purchase the seller’s products or services.

Today’s salesperson must react and interact with a wide range of individuals in a variety of ways.

A salesman must be a psychologist with one prospect, a human computer with another, an adviser with another, and a friend with certain purchasers, in addition to having product expertise.

Every call requires salespeople to change their personas. Salesmanship may be used in a variety of ways, including personal selling and advertising.

As a result, advertising has been referred to as “print salesmanship.”

According to some definitions, salesmanship is the skill of convincing or influencing individuals to do what the sales representative wants them to do.

Contractors, instructors, ministers, authors, legislators, industrial engineers, and others, for example, all practise the skill of persuading others to accomplish what they desire.

The ability to persuade others to desire what they already need is known as salesmanship. The capacity to transform human necessities into wants is known as salesmanship. A salesperson’s job is to provide a service, such as assisting a customer.

The salesperson provides an answer to the customer’s difficulties. Salesmanship is defined as the ability to deal with people and products.

Definition of Salesmanship

According to W.G Carter, “Salesmanship is in attempt to induce people to buy goods.” According to the National Association of Marketing Teachers of America, “It is the ability to persuade people to buy goods or services at a profit to the seller and benefit to the buyer.”

In the words of Robinson and Stidsen, “Personal selling may be defined as interpersonal face-to-face interaction for the purpose of creating, exploiting or maintaining a mutually beneficial exchange relationship with others.”

According to Knox, “Salesmanship is the power or ability to influence people to buy at a mutual profit, that which we have to sell, but which they may not have thought of buying until call their attention to it. Salesmanship is the ability to persuade people to want they already need.”

According to Prof Stephenson, “Salesmanship refers to conscious efforts on the part of the seller to induce a prospective buyer to purchase something that he had not really decided to buy, even if he had thought of it favorably. It consists of persuading people to buy what you have for sale in making them want it, in helping to make up their minds.”

According to J.C. Jagasia, “It is an ability to remove ignorance, doubt, suspicion and emotional objection concerning the usefulness of a product.”

According to Holtzclaw, “Salesmanship is the power to persuade plenty of people to pleasurably and permanently purchase your product at a profit.”

As a result, salesmanship is defined as the process of convincing someone to purchase products or services. Salesmanship does not have to be limited to personal selling; it may also be applied to advertising—printed salesmanship.

In its broadest sense, salesmanship encompasses all forms of persuasive techniques used by a seller, such as advertising, personal selling, and other techniques.

Characteristics of Salesman

Successful salespeople frequently have attributes in common that help them be effective in their jobs. Here are some essential traits of a successful salesperson:

1.Effective Communication Skills: Salespeople must be able to clearly express their message, listen to consumers attentively, and modify their communication style to suit the needs and preferences of each individual client.

2. Empathy is essential for establishing connection and trust with customers through comprehending their wants, problems, and difficulties.

3. Persistence is key since rejection occurs frequently in sales. Good salesmen don’t give up easy and keep going for opportunities despite difficulties.

4. Confidence is essential while selling a product or service, both in oneself and in the latter. Customers are more inclined to heed the salesman’s advice when the salesperson exudes confidence, which fosters trust.

5. Product Knowledge: To successfully respond to consumer inquiries, dispel concerns, and position the offering, a thorough grasp of the product or service is essential.

6. Flexibility: It’s crucial to be able to adjust to various consumer personalities and circumstances. Salespeople should adapt their strategies to fit the unique demands of each client.

7. Sales professionals frequently deal with problems and objections. Salespeople that are successful are adept problem solvers who can address client issues.

8. Prioritizing leads, following up on opportunities, and optimizing production all depend on effective time management.

9. Resilience: The sales industry may be challenging, and rejection is often. Salespeople who possess resilience are able to recover from failures and have a positive outlook.

10. Honesty & Integrity: The foundation of effective sales interactions is trust. When dealing with clients, salespeople should be ethical, truthful, and open.

11. Good salespeople are goal-oriented and motivated by targets and goals. They establish specific goals and work assiduously to attain them.

12. Salespeople who have active listening abilities are better able to comprehend the requirements and problems of their clients and to provide pertinent solutions.

13. Negotiation Techniques: A crucial step in the sales process is frequently good negotiation. Salespeople must establish deals that suit both sides and are mutually profitable.

14. Building and maintaining a network of potential clients and business associates may be helpful for generating leads and recommendations.

15. Positivity: Being upbeat and enthusiastic may spread quickly and make for a more enjoyable and fruitful sales encounter for both the salesperson and the client.

16. Self-motivation is essential because sales might occasionally be a lonesome job. To hit their quotas and maintain focus on their objectives, salespeople need to remain motivated.

17. A planned sales process should be followed to maintain consistency and effectiveness in sales activities.

18. Creativity may help a salesman stand out from the competition by coming up with novel ways to connect with prospects or address their concerns.

19. The finest salesmen are constantly seeking to advance their abilities and expertise. They keep abreast of market developments and fresh sales strategies.

20. Client-centric Focus: A key component of effective selling is prioritizing the demands and interests of the client.

Although each of these qualities can help a salesman succeed, not every salesperson possesses them all in equal amounts. To effectively interact with a variety of clients and scenarios, sales teams frequently benefit from a diversity of personalities and abilities.

Salesmanship: Art, Science or Profession ?

The Art of Salesmanship

Because art is a science that is put into practise, it necessitates practical action. It is the application of information or inherent abilities in a practical manner.

One could have a vast understanding of medical science and a mediocre capacity to use it (or create it). In general, understanding of a science is achieved by study, whereas competency in an art is gained through practise.

Because art is a science that is put into practise, it necessitates practical action. It is the application of information or inherent abilities in a practical manner.

The Science of Salesmanship

Selling is unquestionably an art form. Art, on the other hand, is a practical science. It is the application of information or inherent abilities in a practical manner.

A study of the sales process, as well as the experience and strategies of effective salespeople, is conceivable. Because of the numerous immeasurable human factors involved, it will always be an inexact science to some extent.

Science includes mathematics, physics, and chemistry. Because salesmanship is a specialised expertise with its own standards, rules, and theories, it may also be called a science.

It, like the other sciences, has already established a systematised knowledge of its own. These norms and concepts, however, cannot be applied to everyone in the world since humans are not all created equal.

Without a doubt, while a salesman’s attitude and behaviour may persuade a majority of consumers, the same cannot be applied to all clients, and it may not be successful in every situation.

This is because dealing with consumers can never be reduced to immutable laws and inflexible concepts.

As a result, unlike physics or mathematics, salesmanship is not a precise science. It is a human psychology-based science. It is a science in the same way that sociology and economics are.

As a result, the word “salesmanship” encompasses both core selling ideas and the ability to apply them in the actual process of selling. It takes into account both science and art.

Salesmanship: A Profession

A profession is defined as a “vocation, especially one that incorporates any area of learning or science,” according to the Concise Oxford Dictionary.

A profession may be characterised as a job that is mechanical yet requires some expertise.

The subject of whether or not salesmanship is a profession is frequently debated.

The basic qualities of the profession should be explored in detail in order to determine the same. The following are qualities of a profession:

It is a collection of knowledge that has been arranged.
It must have a particular knowledge structure that is formalised.
It must have a well-organized strategy for individual training for those who wish to enter the field.
It must have a well-defined and widely recognised code of ethics.
It must have a set of admission and exclusion criteria.
Self-interest must take a back seat to the needs of others. In other words, the idea of “service first, profit second” must be followed.

When the aforementioned criteria of a career are analysed for salesmanship, it is clear that it has not yet developed into a genuine profession like law, medicine, or other fields.

Salesmanship, like other professions, lacks a ready-made body of knowledge that can be used in every scenario.

A salesman’s skill and strategy for closing a deal differs from person to person, as well as by location and time.

A single selling technique or method cannot claim to be in charge of all potential selling techniques and methods.

As a result, salesmanship cannot be categorically classified as a vocation. Before salesmanship attains the position of actual vocation, a tremendous deal of effort and precision is required.

It is, nonetheless, capable of developing into a vocation with significant knowledge advancement.

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Category: SALESMANSHIP (Page 2 of 2)

Market Research

Definition

What Is the Purpose of a Market Survey?

Templates for Market Research

The Importance of Market Research

Market Research Methodologies

IMPORTANCE OF MARKET SURVEY TO SALESMAN AND PRODUCER

Sales Forecasting: Full Overview

Table of Contents

Meaning

Importance of Sales Forecasting

Methods of sales forecasting

Criteria of a good forecasting method

Limitations of Sales Forecast

Sales Quota : Types

Table of Contents

What is the purpose of the sales quota?

Types of quotas

Characteristics of a good quota system

Sales Management

Introduction

Definition

Benefits of selling activities

Elements of sales management

Need and Importance of sales management

DEVELOPING SALES FORCE DECISION

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