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(2024-27) Notes on: Sales and Distribution Management-I 2024-27 / Sales and Distribution Management- I Page 1 of 132  Contents (2024-27)...

(2024-27) Notes on: Sales and Distribution Management-I 2024-27 / Sales and Distribution Management- I Page 1 of 132  Contents (2024-27) Sales and Distribution Management - I Page SECTION(S) Topics Numbe r A ESSENTIALS OF SALES 4-30 A.1 History and Introduction of Sales 4 A.1.1 Definition of Sales 4 A.1.2 Basics of Sales Process 4 A.1.3 Historical Background of Sales 9 A.2 Functions of Salesman 11 A.3 Importance of Sales 13 A.3.1 Important to Producers 14 A.3.2 Important to Consumers 15 A.4 Roles and Responsibilities of a Salesman 15 A..4.1 Role of Sales Person 17 A..4.2 Responsibilities of Sales Personnel 18 A..4.3 After Sales Services 21 A.5 Qualities of Salesman 23 A.6 Nature and Importance of Product Knowledge 26 A.7 Knowledge about Customers 28 A.7.1 Categories of Customers based on their needs 29 A.7.2 Categories of Customers based Sales 30 A.7.3 Kinds of Buying Motive 30 B SALES PRESENTATION 31-40 B.1 Sales Aid 31 B.1.1 How to create Sales aid? 32 B.1.2 Use of Technology for Sales 32 B.1.3 Market Survey and its Importance 33 B.1.4 Methods of Market Research 37 B.1.5 Market Research Process 39 B.1.6 Importance of Market Survey 39 C TYPES OF SELLING 41-68 C.1 Transactional Selling 41 C.2 Product Oriented Selling 43 C.3 Solution Selling 44 C.4 Consultative Selling 48 C.5 Insight Selling 53 2024-27 / Sales and Distribution Management- I Page 2 of 132  C.6 Social Selling 54 C.7 Challenger Selling 59 C.8 High Pressure Selling 66 D SALES MANAGEMENT 69-95 D.1 Sales Management 69 D.1.1 Process of Sales Management 69 D.1.2 The Importance of Sales Process Management 73 D.1.3 Elements of Sales Management 77 D.1.4 Sales Management Process 78 D.1.5 Effective Sales Management 81 D.1.6 Objectives of Sales Management 82 D.1.7 Types of Sales Management 83 D.1.8 Sales Management Responsibilities 84 D.1.9 Sales Manager Styles 85 D.2 What is Effective Selling ? 86 D.2.1 What is Personal Selling ? 87 D.2.2 Relevant Situation For Personal Selling 88 D.2.3 Advantages of Personal Selling 89 D.2.4 Disadvantages of Personal Selling 90 D.2.5 Objectives of Personal Selling 91 D.2.6 Recent Trends in Selling 92 D.3 Difference Between Personal Selling,SalesmanShip and SM 92 E SALES PROCESS 96-105 E.1 Prospecting 96 E.1.1 Indentifying Prospects 97 E.2.1 Qualifying Prospects 98 E.2 Preparation 99 E.2.1 Pre-approach 99 E.2.2 Call Planning 100 E.3 Presentation 100 E.4 Handling Objections 103 E.4.1 Closing 103 E.4.2 Follow Up 104 F HARD AND SOFT SKILLS IN SALES 106-129 F.1 Hard Skills 106 F.2 Soft Skills 106 F.3 Distinguish Between Hard and Soft Skills 108 2024-27 / Sales and Distribution Management- I Page 3 of 132  F.4 Communication Skills 110 F.5 Negotiating Skills 111 F.6 Influencing Skill 115 F.7 Personal Grooming and Etiquettes 118 F.8 Ethical Behavior 120 F.9 Leveraging AI For Sales 126 2024-27 / Sales and Distribution Management- I Page 4 of 132  A. Essential of Sales A.1 History and introduction of sales A.1.1 Definition of Sales Sale is defined as a contract involving transfer of the possession and ownership (title) of a good or property, or the right to use a service, in exchange for money or value. In daily life, a layman deals with different transaction in terms of selling and purchasing of goods and services. In these transactions the second one persuades the first person. Therefore, selling may be defined as persuading people to satisfy the want of first one. The person, who does this act, is called as the salesman, the result of this action as sales, while these activities of the person, are supervised and controlled by sales-management. In the present scenario sales executives are professionals. They plan, build and maintain effective organizations and design and utilize efficient control procedures. The professionals approach requires thorough analysis, market-efficient qualitative and quantitative personal-selling strategy. It calls for skillful application of organizational principles to the conduct of sales operations. In addition, the professional approach demands the ability to install, operate, and use control procedures appropriate to the firm’s situation and its objectives. Executives capable of applying the professional approach to sales management are in high demand today. The quality of selling is referred to as salesmanship. In other words, ‘management’ is synonymous with leadership. Managers do the same thing in industry, as ministers do in states and at the center, i.e., they have to plan, forecast, direct and control their personnel. Here success lies in running together, hand in hand. Managers are the captains of the army of their followers. A.1.2 Basics of the Sales process A sale is the act of selling a product or service in return for money or other compensation. It is the beginning of a relationship between customer and vendor or the extension of that relationship. 2024-27 / Sales and Distribution Management- I Page 5 of 132 Source: https://beyondbusinessgroups.com.au/the-7-step-selling-process/ The 7 steps The 7 step selling process comprises: 1 Prospecting and qualifying 2 Preparation/pre-approach 3 Approach 4 Presentation 5 Overcoming objections 6 Closing the sale 7 Follow-up Step 1: Prospecting and qualifying Before planning a sale, do your research to identify the people or companies who might be interested in your product or service. This step is called prospecting, and it’s the foundational step for the rest of the sales process. A lead is a potential buyer. A prospect is a lead that is qualified or determined to be ready, willing and able to buy. The prospecting and qualifying step relates to the needs awareness step in the buying process. Step 2: Preparation/pre-approach Before making a sales call, email or visit, it is important to do your homework by researching your customer and planning what you are going to say. A good salesperson researches a prospect, familiarising with the customer’s needs and learning all the relevant background 2024-27 / Sales and Distribution Management- I Page 6 of 132 info about the individual or business. Step 3: Approach This is where you make a first impression. You do this by introducing yourself, explaining the purpose of your call or visit, and establishing a rapport with your prospect. First impressions are crucial to building the customer’s trust. You work to establish a rapport with the customer first. This usually involves introductions, making small talk, asking warm-up questions, and generally explaining who you are and whom you represent. There are three common approach methods: Premium approach: Presenting your potential client with a gift at the beginning of your interaction Question approach: Asking a question to get the prospect interested Product approach: Giving the prospect a sample or a free trial to review and evaluate your service Step 4: Presentation Your research and preparation pays off during the presentation, when you propose your sales solution to your prospect. By the time you are ready to present you will understand your customer’s needs well enough to be sure you are offering a solution the customer could use. The presentation should be tailored to the customer, explaining how the product meets that person or company’s needs. Now is the time to focus on the benefits of your product or service. This might involve a product demonstration, videos, PowerPoint presentations, or letting the customer look at or interact with the product. At this point, the customer is using the information being shared as part of a suite of possible solutions. They might be researching your offer compared to others. It is during this part of the sale where you can use upselling and cross selling to engage the customer further. Once you have identified your customers needs you will know if you they would receive additional benefits from an enhanced product or service offering. This is upselling. Cross selling is pitching additional products that relate to the product your customer is considering or purchasing (also known as suggestive selling). Note: Never try to sell your customers something they don’t need. They may well lose trust or confidence in you. 2024-27 / Sales and Distribution Management- I Page 7 of 132 Step 5: Handling objections After you’ve made your sales presentation, it’s natural for your customer to have some hesitations or concerns, known as objections. Good salespeople look at objections as opportunities to further understand and respond to customers’ needs. Be prepared and use some of the following ideas: Recognise your customer’s comments by acknowledging their views and then responding with solutions. Ask questions about their views to find ways to address them. Restate the customer’s objection. By saying it aloud, you can reduce its impact. Ideally you will be prepared for what customers will say, and be ready to respond. For example: Objection: ‘Sorry, I don’t have the time today.’ Response: ‘No problem. I’m more than happy to book you a ten-minute meeting later in the week.’ 2024-27 / Sales and Distribution Management- I Page 8 of 132 Source: https://beyondbusinessgroups.com.au/the-7-step-selling-process/ Step 6: Closing the sale The important – and sometimes challenging – part of the sale is closing it! This is where you actually have to ask if the potential customer is willing to make the purchase. If your customer has been convinced your product or service will meet their needs, you close the sale by agreeing on the terms of the sale and finishing up the transaction. Depending on your business, you might try one of these three closing strategies. Alternative choice close: Assume the sale and offer the prospect a choice, where both options close the sale. For example, ‘Will you be paying the whole fee up front or in installments?’, ‘Will that be cash or card?’ or ‘Would you like me to wrap that for you?’ Extra inducement close: Offer something extra to get the prospect to close, such as a free month of service or a discount. 2024-27 / Sales and Distribution Management- I Page 9 of 132 Standing room only close: Create urgency by expressing time is of the essence. For example, ‘The price will be going up after this month’ or ‘We only have six spots left’. Step 7: Follow up OK, so you’ve made the sale. While it might seem like you’ve accomplished your goal, the customer journey continues. Follow-up is an important part of assuring customer satisfaction, retaining customers and prospecting for new customers. This might mean sending a thank you note, calling the customer to make sure the product was received in satisfactory condition, or checking in to make sure a service has met the customer’s expectations. The seller or salesperson – the provider of the goods or services – completes a sale in response to a request from the interested purchasing party. Ideally, a seller agrees upon a price at which he willingly gives away the ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the commitment of payment. If the seller completes the provision of consent and passing ownership of the sale prior to settlement of the price, the sale remains valid and gives rise to the responsibility to pay. A.1.3 Historical Background of Sales Early direct sellers were the dealers, traders and merchants inside caravans that began man’s basic needs to exchange foods and communicate. As the direct seller established consistent neighborhood ties, he traveled outside neighborhood geographies creating the development of roads and waterways. Pre-historic trade followed geographically convenient routes because of the ridges, rivers, mountains etc. that slowed down easy travel. The early seller then exchanged pottery, stone weapons, tools and agricultural products with people of other lands. Barter, the direct exchange of goods for goods, was the principal means of trade. The early civilizations of Egypt, Syria and India were actively involved in trade. In Greece, the caravan trade included domestic tools, metal kitchenware and clothing. Local markets, on the other hand, were excellent meeting places for customers and direct sellers. The early direct 2024-27 / Sales and Distribution Management- I Page 10 of 132 seller seized all opportunities to trade his goods...i.e. fairs connected with religious feasts, and troops stationed in the field. In the 5th century AD, Greece was involved in a great deal of direct selling. The direct seller sold his goods in the street or exhibited his products in stalls or shops. Others traveled from place to place- visiting fairs and other large gatherings. The 10th century marked the beginning of world-wide economic expansion. The direct seller played an important role in bringing about trade during the 10th and 13th Centuries during which many roads were built. He brought novelties like woolens, silk belts, brass rings and writing tablets from large cities to small towns and villages. In ancient India, the traders either walked or rode horses to their customers. The more prosperous sellers rode in bull-cart or horse carriages. Direct sellers comprised of fruit and vegetable vendors, potters, craftsmen, artisans, iron-smiths, cloth-vendors to name a few. In modern times the direct sellers (Companies and Corporations) developed sales professionals who targeted specific industries with specific products. Today, the customer still benefits from a personal and convenient way of purchasing products over the Internet. Each direct seller now has a worldwide customer base. In the present day selling has evolved into a highly technical medium with highly specialized sales and distribution channels. Telephonic, email, social networking over the web are some forms of technology-oriented sales methods. 2024-27 / Sales and Distribution Management- I Page 11 of 132  A.2 Functions of Salesman ✔ Selling The fundamental duty of a salesman is selling. This duty includes meeting the prospects, presenting and demonstrating the products, inducing the prospects to buy, taking orders and effecting sales. ✔ Guiding the buyers A salesman should guide the buyers in buying the goods they want. ✔ Attending to complaints A salesman should attend to the complaints of the customers immediately and try to settle their grievances quickly and sincerely. ✔ Collection of bills Sometimes, a salesman may be required to collect the outstanding bills relating to the goods sold by him. In such a case, he has to collect the bills and remit the amount to his firm. ✔ Collection of credit information A salesman may, sometimes, be required to collect information about the credit-worthiness of the customers. In such a case, he has to collect detailed information and submit it to his firm in time. ✔ Reporting A salesman, especially a traveling salesman, is required to send daily, weekly or monthly reports to his firm, providing information about the calls made, sales effected, services rendered, route schedule, expenses incurred, business conditions, competition, if any, etc. 2024-27 / Sales and Distribution Management- I Page 12 of 132  ✔ Organizing A salesman, i.e., a traveling salesman, is required to organize his tour programme. He has to prepare the route and time schedules for his tour so as to systematize his sales efforts. ✔ Attending sales meetings A salesman is required to attend the sales meetings convened by his employer at periodical intervals to discuss the marketing problems, sales promotion activities, sales policies, etc. ✔ Touring A traveling salesman, has to undertake touring regularly to cover the sales territories assigned to him. ✔ Arranging for packing and delivery A salesman, i.e., a counter salesman, has to arrange for the packing of the goods sold and the delivery of the packages to the buyers. ✔ Window and counter displays A salesman, i.e., an indoor or counter salesman, has to arrange for the window and counter displays of the products in an attractive manner so as to attract or induce the prospects to buy. ✔ Promotion of goodwill Every salesman has to build up satisfied clientele (i.e., customers) for his employer and thereby promote the goodwill of his firm. ✔ Recruiting and Training Recruiting new salesmen, imparting training, by accompanying them while making sales calls. 2024-27 / Sales and Distribution Management- I Page 13 of 132  ✔ Working with Middlemen Salesmen establish direct relations with middlemen — distributors, wholesalers, etc., and collect market information and pass it on to their firm. A.3 Importance of sales If you want to learn what sales is useful for, then check out the points given below: Revenue Generation: Revenue and sales are closely related. It is the cash that customers give the company in exchange for goods or services. Without income, a business cannot pay its bills, pay its workers, invest in expansion, or even stay afloat. Revenue provides financial support for all business activities. Business Survival: The survival of a business depends on sales. No matter how cutting-edge a product or service is, there would be no market or demand for it without successful strategies. It guarantees that a company will remain valuable, relevant, and competitive. Market Expansion: Successful sales enable companies to investigate new markets and clientele. This growth may be geographic, reaching out to new areas, or demographic, focusing on various customer types. By reducing reliance on a single market, customer base diversification lowers risk. Employment Possibilities: A successful sales department generates numerous job opportunities. To support the process, several positions outside of sales are required, including those in marketing, customer service, logistics, and production. The economy will grow as a result of this job creation. Innovation and Research: Sales interactions offer insightful information about customer preferences, behaviors, and new trends. Businesses can stay ahead of the curve by innovating and creating new products or services that cater to customer needs by understanding their wants and needs. Marketing Alignment: Marketing strategies are improved by effective feedback. It aids marketing teams in honing their messaging, determining their target markets, and customizing campaigns to reach 2024-27 / Sales and Distribution Management- I Page 14 of 132 prospective clients more. This alignment ensures the conversion of marketing efforts into fruitful leads. Customer Relationships: When interacting with customers personally, salespeople serve as the company’s public face. These connections are based on mutual understanding, meeting customer needs, and trust. Strong connections result in repeat business, customer loyalty, and favorable word-of-mouth recommendations. Brand Visibility: Sales efforts introduce Potential customers to a company’s goods or services. Successful marketing initiatives increase brand recognition and visibility, improving brand recall in consumers’ minds. Competition and Innovation: Competition pushes companies to improve. Companies innovate to outperform competitors, enhancing customer experiences. Economic Growth: Businesses boost economic growth by selling goods and services. Economic activity generates taxes, jobs, and consumer spending. Partnerships and Alliances: Sales can lead to business partnerships. These alliances allow companies to share strengths, expand their reach, and offer complementary products or services. Feedback Loop: Sales interactions provide a valuable feedback loop. Experts ask customers about product performance, satisfaction, and improvement. Feedback refines and develops products and services. Company Culture: An ethical, customer-focused culture can impact the entire company. Customer-centricity encourages collaboration, innovation, and value delivery. A.3.1 Important to Producers: Salesmanship is important to producers and manufacturers. For pushing products into the competitive market, salesmanship is necessary. To capture new markets also salesmanship is very important. Salesmen increase the sales volume. It brings larger profits to the 2024-27 / Sales and Distribution Management- I Page 15 of 132 manufacturers. Salesmen work as the “eye and ear” for the manufacturers. They improve their products according to the taste of the consumers. They improve their sales policies by keeping in mind the suggestions, impressions and complaints of the consumers. He is the creator of demand. Hence, it leads to increased production and increased business activity. As such it increases employment opportunity as well as personal incomes. A.3.2 Important to Consumers: Salesman educates and guides the consumers. He gives them more satisfaction. ‘Consumers are right’ in the marketing. As such, he gives more importance to them. Salesman helps the consumers in making the right decision and proper selection of the products which they want to buy. Salesmanship increases the rate of turnover, and hence reduces unsold stock. As such it minimizes the economic stagnation. Consumers can select the best products according to their requirements, taste and money. A.4 Roles and responsibilities of salesman ✔ Selling: It includes meeting the prospects, taking orders, demonstrating products, increasing sales to the existing customers, sincerity in quoting prices and terms of sales and consistently following the approved policies and methods of his firm. ✔ Traveling A salesman has to undertake journey to cover the territory assigned to him. ✔ Collecting: A salesman may be required to make collections of the bills relating to products sold by him. 2024-27 / Sales and Distribution Management- I Page 16 of 132  ✔ Reporting: He has to prepare and send daily, weekly and monthly reports to his firm. These reports contain the expenses incurred, calls and sales made, service rendered, customers lost to the firm, competition, if any, business conditions, mileage of the journey made and route schedules followed. ✔ Handling Complaints: He is expected to attend to the complaints of the customers. He may settle the claims himself or recommend terms on which the head office should finalize settlement. ✔ Collection of Credit Information: Some firms depend upon their salesmen for the information about the creditworthiness of their customers. ✔ Advising and Counseling: Salesman gives advice to the customers on matters relating to the product and marketing problems. ✔ Organizing: Salesman is expected to take active interest in preparing the route and time-schedules for his sales journey with a view to put in systematized sales efforts. ✔ Attending Sales-Meetings: Salesman have to attend the meetings which are held at periodic intervals to keep the sales men well informed about the new products, new sales policies etc. ✔ Promotion of the Goodwill of the Firm: It is the duty of the salesman to cultivate customers, keep them satisfied and thus maintain and further increase the goodwill of the firm by enhancing its prestige in the eyes of these 2024-27 / Sales and Distribution Management- I Page 17 of 132 customers A.4.1 Role of Sales person It is generally debated whether a good salesman can make a good sales manager or whether a sales manager should sell. The traditional thought emphasized that field sales manager should basically be a high class salesman. However modern thinking views that selling and managing are two different types of jobs and the more a person becomes a salesman the less he is a good manager. In reality we find that in small organizations even the branch manager is basically a salesman. As the size of the organization grows and more specialization is introduced, the distinction between actual selling job and the managing job gets clearer. Whereas many sales managers are involved in both selling and managing activities; so the question again arises how much of selling activity should be done by the sales manager. It all depends on the type of organization, the type of product and other considerations to determine the roles and responsibilities of sales personnel. In general, he is expected to perform as- Revenue generator for the firm-Sales people occupy the unique role of revenue producer in their firm and try to increase sales volume to contribute company's profitability. The financial results of an organization depend on the performance of its sales management. Just like management, sales persons also have the pressure of "meeting and beating targets" set for their company. They are constantly reminded of their responsibility to improve profitability by increasing sales and revenue. Consultant to customer- Salesperson is in fact a link between the firm and the buyers. His objective is not to fool the customers but to gain their confidence, convince them about the product or service and its superiority over competitors. A salesman serves the employer and his customers as well, so takes care of interests of both the parties by his objection handling and problem-solving skills. He listens to the customer, identifies his need, offers alternative solutions, evaluates alternative solutions and continues selling until the buyer takes purchase decision. Buyers also value the information furnished by salesmen who help them in consultative manner. 2024-27 / Sales and Distribution Management- I Page 18 of 132 Image builder-Salesman has the crucial role of building the image or status or good will of company. It is done by building the company's product image, service image, managerial philosophy, management objectives and policies. He is to establish that how his company is different from others and why it is worth appreciating as the best of all others in the market. He is to sell company's idea, vision, goals, objectives, policies, strategies that go in keeping prospects satisfied and delighted so that they demonstrate others that it is worth to do business with this organization than others. The greatest thing in business is credibility, status and the image of sales organization. Relationship builder- The role of salesmen in building successful buyer- seller relationship and maintaining it, is very crucial. Each time a transaction takes place between a buyer and seller, thebuyer and seller develop a relationship. Some relationship may be short term transactions taking place only for once, which are called 'market exchange', e.g. purchase of durable furniture or a musical instrument. But other business relationship may involve many transactions and may last for many years, as in case of purchases by business houses or Government organizations. These are called 'functional relationship'. Open and honest communication builds trust between a buyer and seller to enter in transaction for mutual gain. Thus, salesmen help in developing long term business relationships for the benefits of both the parties. Responsibilities of Sales person- A.4.2 Responsibilities of sales Personnel To call on customers- The foremost duty of every salesman, in general, is to call on existing customers or a new customer. Calling on customer is keeping regular touch with existing customers which is also called as 'keeping accounts alive'. It also means opening 'new accounts' or creating new customers in sales territory. It is the responsibility of a salesman to learn the art of converting a prospect into a customer. These calls are made either at the office of the customer or house of a customer or any other suitable place agreed by them. This helps in increasing customer base, sales and profitability of the company. 2024-27 / Sales and Distribution Management- I Page 19 of 132 To maintain and extend sales territory- A sales territory is a geographical area consisting of number of prospects and customers. A salesman has to work in sales territory where he keeps the existing customers and creates new customers by his skill of persuasion. He is responsible for converting suspects to prospects by clearing all fears and doubts and then converting that prospect into a customer in his territory. A territory may be a city area, district area, or a division area or even a state. As a representative of manufacturing company, or whole-saler or retailer he moves from city to district, district to division or state, to extend his sales territory. To increase sales- A company generally does not deal in a single product, but has a product line and product range. It is the duty of the salesman to bring those products to the notice of customers, retailers and wholesalers. This results in overall improvement of sales and profits of the company. To build company image- The greatest thing in business is credibility, status and the image of an organization. A salesman has crucial role of building the good will of his company. By promoting company's products/services, vision, goals, objectives and policies, he keeps customers informed, satisfied and delighted. He also establishes how his company is different from others and the best of all others in the line. To create product knowledge- The world of competition and technology brings new ideas, new products, new processes, new services at much cheaper cost every day. The information of these products and services is not reaching to the people who are not connected by information communication network. They do not know about new products, services and their uses. It is the sales force which can bring these products and services into the knowledge of people. In each call they make, they must present these products and services and speak of their superiority, benefits and convenience to create awareness. To guide dealers- Dealers are the people, who helpin successful distribution of goods and services of a firm. Whereas sales people are working for manufacturers, wholesaler and retailers, the dealers also play a big role in selling. Salesmen can help distributors in 2024-27 / Sales and Distribution Management- I Page 20 of 132 promotional activities of advertisement and publicity of company's product.They may guideto position the products and services in exhibitions or in window display and counter display in the showrooms of dealers. To provide feedback to the producers- Sales people collect detailed frank and factual information from buyers about the needs and expectations of a product. They also explore whether buyers expect any innovation in existing products and services from the producers. Salesman are in fact the spokesmen of „consumer- the king'. The manufacturers produce products according to market requirements and decide about quality standards, price range and quantity needed. So sales men are expected to bring the customers’ voice back into the company to help with product development and marketing. To train new salesmen- Every year so many young people join sales line to make their career in various positions. At the same time, the aged and willing sales people who made their career-retire. As salesmen in the field of selling, they have a big role in teaching the tricks of the trade and act as role model. It is their responsibility to train and prepare new sales force for the organization. To collect payments tactfully: Collection of dues is the most difficult job in sales- A Salesman cannot compel the person to pay but he has to develop the ability to drive the customer to pay.He should be skillful enough in collecting dues presently, yet retaining the customer for future. It is because, if he loses one customer by enforcing his right to collect, there is danger of losing other good customers, as a disturbed customer can spoil the name of salesman and the selling house. Timely collection of payments for his transactions is also a responsibility of a good salesman. To report and participate in Sales Meetings - Meeting provides a forum for exchange of ideas, techniques, methods, tricks that enhance the company sales as well as his knowledge about various dimensions of his sales career. Salesman is a bridge between the outside world and the organization. He must make timely reporting and participate actively in the sales-meetings. This keeps him updated, increases his confidence and helps in developing his 2024-27 / Sales and Distribution Management- I Page 21 of 132 capacity to organize the line of activities in sales field. Integrity of character- It is the prime responsibility of a salesman to possess the qualities of honesty and integrity. He must gain the confidence of the customer and should be loyal to the employer as well. A.4.3 After sale services- After sales service refers to various processes which make sure that customers are satisfied with the products and services of the organization. It means that sold products and services meet or surpass the expectations of the customers. Selling process is not over after the receipt of order. In fact, customers are an asset of every business and a good sales person must try his level best to satisfy his customers by his services, at the time of sale or even after the sale. By demonstrating care about his customers', salesman builds a good relationship with the customers which can bring them back to his organization again. Under after sale service the organization plans a follow up call or a visit by salesman, to ensure that everything went well. It is to check if the product is received on time and without any damage during transit? If such is the case, the salesman should arrange for replacement. The salesman helps customers with instructions and warranty information. Any problem or complaint should be handled promptly to leave customer satisfied. a) After Sales Service Techniques: To keep customer happy, generally the following after sales service techniques are adopted by the organizations- ✔ Regular Contact- Sales Professionals stay in touch with the customers even after the deal. They call them occasionally to exchange pleasantries. ✔ Support Services- They give them the necessary support to install, maintain or operate a particular product. For example, sales professionals selling laptops must ensure windows are configured in the system and customers are able to use net without any difficulty. Similarly, organizations selling mobile sim cards must ensure the number is activated immediately once the customer submits his necessary 2024-27 / Sales and Distribution Management- I Page 22 of 132  documents. ✔ Grievance handling-They listen to customers' grievances and make them feel comfortable. ✔ Any product found broken or in a damaged condition is exchange immediately by the sales professional. ✔ A modern organization creates a toll-free number where the customers can call and discuss their queries or create a section in organization’s website where the customers can register their complaints. Salesman take feedback of the products and services from the customers. Feedback helps the organization to know the customers better and incorporate the necessary changes for better customer satisfaction. Salesmen ask the customers to sign Annual Maintenance Contract (AMC) with their organization. AMC is an agreement signed between the organization and the customer where the organization promises to provide after sales services for certain duration at nominal costs. b) Why to provide After Sales Service? After sales service is an essential part of company's sales strategy to satisfy customers with the products and services offered by the organization. It is considered as a part of customer relationship management which helps in creating customer loyalty and retaining them in future. The loyal customers start believing in the brand and get associated with the organization for a longer duration. A satisfied and happy customer may make repeat order. He speaks good about the organization and its products, which brings more individuals and eventually more revenues for the organization. So after sales service plays a pivotal role in strengthening the bond between the organization and customers. which brings more individuals and eventually more revenues for the organization. After sales service plays a pivotal role in strengthening the bond between the organization and customers as it is easier to retain a loyal customer than to find a new one. 2024-27 / Sales and Distribution Management- I Page 23 of 132  A.5 Qualities of sales man Source: https://www.socoselling.com/traits-of-good-versus-bad-salesperson/ 1. Mindset Alongside consistency and intuition, great salespeople possess a strong mindset that can take rejection after rejection. Instead of getting discouraged, the great salesperson uses this as motivational fuel to get the next prospect to say yes. More so, I think people feel like sales are trying to convince someone to do something that they believe that person doesn’t want to do, which isn’t right at all. Rather, it’s all about your perception of sales. When I walk into a room, I always feel like I have something tremendous to give you. I can help your sales professionals reach their goals. So, it’s two things—first, your perception and your belief in what you are conveying. So therefore, I believe in what I do. Second, I think what I do makes a difference and helps people and that it matters. So, I project that sales 2024-27 / Sales and Distribution Management- I Page 24 of 132 mindset. 2. Good Listener Great salespeople listen to the customers’ needs and use them to propose a solution that works best for them. Above all, they understand that sales professionals should be listening 80% of the time and only talking 20% of the time. Of that 20%, half of that should be asking questions. That leaves only 10% for selling and telling. 3. Prepared Great salespeople come prepared for meetings with all the necessary sales materials, product information, and answers to anticipated objections. This helps them to appear confident and knowledgeable, which instills trust in their clients. 4. Confident A level of arrogance allows a salesperson to assume they’ll make a sale before ever meeting with a prospect. A certain level of confidence is necessary for a salesperson to assume that they can make a sale before even meeting with the prospect. This level of confidence helps them project authority, expertise, and a winning attitude. 5. Self-Motivated The best salespeople are driven and self-motivated. They have clear goals in mind and do everything necessary to achieve them. They have an unrelenting work ethic and a level of grit that helps them power through the tough times. Great salespeople have their own goals in mind and do whatever it takes to meet or exceed them. This is also known as drive or grit. 6. Product Knowledge A great salesperson knows everything about their product or service and how it compares to the competition. More so, they know people don’t buy features; they buy benefits. Features answer the question, “What is it?” and benefits answer the question, “What’s in it for me?”. 7. Friendly Great salespeople can easily build rapport with all types of people, whether on the phone or in person. Building rapport with customers is one of the most important steps in the sales process. A strong relationship with a customer creates mutual trust and a lasting relationship that can 2024-27 / Sales and Distribution Management- I Page 25 of 132 lead to repeat business. As the saying goes, ‘People do business with people they know, like and trust.’ 8. Follows Up The best salespeople don’t wait for the customer to follow up with them. Instead, they proactively check in to see how they can help the customer move forward. This helps to maintain the relationship and keep the sales process moving. 9. Organized Successful salespeople keep track of all their prospects, past clients, and lost sales in a CRM system. This helps them know when to follow up, which leads to increased sales. 10. Quick On Feet The best salespeople are quick on their feet and can adjust their pitch based on the current situation. They are prepared for any questions or objections and can pivot the conversation to meet the needs of the customer. This flexibility helps them close more deals and build stronger relationships with customers. 2024-27 / Sales and Distribution Management- I Page 26 of 132 Source: https://www.socoselling.com/traits-of-good-versus-bad-salesperson/ A.6 Nature and Importance of Product knowledge ✔ Personality is not Enough Sales personality without product knowledge is just like a body without soul. Perfect knowledge of the product is highly essential for the salesman in dealing with the customers. Through product knowledge is essential for a salesman to succeed in his selling job. ✔ Ensures Better Sales While selling a product, the salesman generally puts more stress on its benefits and utilities. Unless he knows the product in detail, he cannot provide the information about the product and its utilities required by customers. A through product knowledge thus helps the salesman to make customers understand how it will satisfy their need. ✔ Strengthens self Confidence A thorough knowledge of the product helps the salesman to speak with self confidence and courage. He cannot be defeated either by his customers or rivals. Detailed knowledge of the product also helps the salesman to remove doubts and suspicions about the products from the minds of the customers. ✔ Makes selling a Pleasant Task The salesman knowledge is perfect about the product, he finds his job. Therefore, the salesman is expected to know every detail of what he is selling or is expected to sell. A self-satisfied salesman naturally ensures better sales. ✔ Ensures satisfactory Meeting of Objections or enquiries The salesman should be well equipped with all the technical as well a non-technical knowledge of the product. Prompt answers from the salesman impresses the buyers. 2024-27 / Sales and Distribution Management- I Page 27 of 132  ✔ Enables to Stand Competition The victory in selling depends on the up-to-date detailed technical as well non-technical knowledge of the products. A competent salesman generally remains well equipped with information about the product he sells and the product. ✔ Draws the Perfect Image of the Product A perfect knowledge of the product helps the salesman to paint a clear picture of the product in the minds of the buyers. Once the salesman is able to do that, products are sold automatically. ✔ Multiple Earnings With complete product knowledge the salesman is able to sell more, Earnings of the salesman depends on the Sales volume. Thus, with increase in sales and profit, the income of the salesman also increases, the salesman works on commission basis, the salesman is also able to increase his earnings. A thorough product knowledge brings confidence of the salesman. Knowledge of product is the foundation stone of all successful sales. Personality makes a good salesman and knowledge of the product makes him a better salesman. ✔ Ensure better demonstration Demonstration of the product in front of prospective buyers can effectively be made possible, only when the salesman knows very well about the product characteristics. ✔ To present accurate information about the product One cannot present a product to the satisfaction of customers unless be possess the factual and accurate information about the characteristics of the product. ✔ To justifies the higher price strategy Better quality and standard, and improvement in product suggest for higher price because of higher production costs. Customers will be prepared to pay increased price when they are 2024-27 / Sales and Distribution Management- I Page 28 of 132 fully satisfied with the quality/standard/improvements in the products. For the purpose of convincing the customers about increase in prices of the products, the salesman must know more about the product. ✔ Assists the buyers in their buying decisions Where the salesman possesses sufficient knowledge about the quality, price, standard and uses of the product, he will be in a better position to guide the buyers in having such a product, thus helping them in their buying decisions. ✔ Vistas for advancement in career Sufficient knowledge about the product ensures more sales and brings larger profits to the firm. The product and producer image are increased by way of brand loyalty among the customers. Ultimately this will open new vistas for the salesman towards advancement in his career. A.7 Knowledge about customers Customer knowledge is understanding the needs, desires and behaviors of your customers. It can include where and how they shop, what they buy, what advertisement techniques they respond to and promotions or sales that interest them. You can gather customer knowledge to improve your understanding of your customer's desires and actions, which may help you increase your customer base. Here are four main reasons customer knowledge is important: ✔ Helps Decision Making Understanding how your customers think and behave can help your company make decisions that please your customers and may increase business. For example, if the coffee cup company where you work discovers that most customers prefer the color red, you may stock more red cups when ordering supplies. You can use customer knowledge to make decisions when ordering products, introducing new items and creating sales promotions. 2024-27 / Sales and Distribution Management- I Page 29 of 132  ✔ Increases Profit Using customer knowledge to make decisions and create an experience customers want may improve your profits. Customer knowledge can help you create products that your target market wants to buy, which can increase the number of total purchases. You can also use customer knowledge to grow your customer base by applying the information you gather to develop marketing and products that appeal to more consumers. This may result in more people buying your product. ✔ Identifies Growth Opportunity Customer knowledge allows you to discover areas where you can improve customer relations that may increase your customer satisfaction. For example, if you discover that most of your sales come from online purchases, you can use that information to improve your internet services. Understanding how your customers use your company and what they may want can help you identify areas where you can expand or improve your business. ✔ Builds Trust Trust is an important part of customer interaction because a client is more likely to buy products or services from a company they believe is reliable. Increasing trust can build your customer base and may improve brand loyalty for your products. You can use customer knowledge to address concerns, determine what they look for in a quality product and identify actions that may build a customer's trust. A.7.1 Categories of customers based on their needs ✔ Industrial customer Industrial customers generally understand what they want and why they need it. They are also known as business customers. They make purchases for the industry Example: machines, tables. etc. ✔ Institutional customers Institutional customer makes purchases on unnecessary things. The product he purchases will not be useful for him Example: Wi-Fi for college. 2024-27 / Sales and Distribution Management- I Page 30 of 132  ✔ Individual customers Individual customers purchase product for their personal use and not for any other purpose Example: Wi-Fi for home. A.7.2 Categories of customers-based sales ✔ Potential customer Potential customer is a customer who knows all information about the product ✔ New fresh customer New fresh customer is a new customer for the product who purchases for the first time ✔ Impulsive customer Impulsive customer can make buying decision in instant and go for one shop and not for several to choose ✔ Discount customer Discount customers are those who prefer products on discount ✔ Loyal customer Loyal customer is a customer who goes for a same shop all over the time. A.7.3 Kinds of buying motive There are two types of buying motives. They are: a) Primary motive Primary buying motives are those which exist in the human being since birth. The primary buying motives are as follows ✔ Food and drink ✔ Comfort ✔ To attract opposite sex ✔ Welfare of beloved one ✔ Freedom from fear and danger 2024-27 / Sales and Distribution Management- I Page 31 of 132  ✔ Social approval ✔ To be superior b) Secondary buying motive Secondary buying motives are those which are created by the atmosphere in which man live. The main secondary motives are as follows ✔ Bargaining. ✔ Information. ✔ Cleanliness. ✔ Efficiency. ✔ Convenience. ✔ Dependability. ✔ Quality. ✔ Style and beauty. ✔ Economy, profit. ✔ Curiosity. B. Sales Presentation B.1 Sales aid Sales aids are resources sales reps distribute to prospects to offer product information or enhance sales presentations. Sales aids are visual in nature, generally supported by concise copy, and often presented in face-to-face meetings. Some are as simple as individual slides, while others are more interactive. Sales aids are most commonly associated with healthcare and pharmaceutical sales, but the concept isn't necessarily specific to those industries. Any sales representative looking for a 2024-27 / Sales and Distribution Management- I Page 32 of 132 succinct but comprehensive way to inform prospects about the nature and benefits of a product stands to gain a lot from understanding sales aids. Whether it be by complementing a sales presentation or connecting with a perfectly new prospect, sales aids can be excellent assets for any salesperson looking to capture and keep potential customers' attention. B.1.1 HOW TO CREATE SALES AID? ✔ Understand your product and the world around it ✔ Put the pain point or the concept in front or center ✔ Tell a story ✔ Make any hard data aesthetically pleasing ✔ Consider getting creative with your medium B.1.2 Use of technology for sales ✔ Customer relationship management Today, most sales organizations use some type of CRM system. CRM absolutely provides better visibility into sales opportunities and allows sales managers to track deals as they progress through the pipeline. By monitoring these opportunities, sales managers can review stage, probability, and velocity to improve forecast accuracy. ✔ Video conferencing Video conferencing used to require big, bulky, expensive equipment. Today, anyone can hop on a video conferencing call. This has been a great enhancement for sales managers whose salespeople work remotely. ✔ Virtual learning Sales people today no longer have to wait for in-person events or classroom training to improve their skills. Thanks to virtual learning platforms (VLT) and Learning Management 2024-27 / Sales and Distribution Management- I Page 33 of 132 Systems (LMS), sales managers can provide sales people with ways to engage with sales training anytime, from almost anywhere. ✔ Mobile devices All salespeople today are on mobile devices -- and not just phones. They’re using iPads, laptops, and other devices that help them routinely during a given day of selling. As an example, sales acceleration software from Q-Stream, (a partner of ours) can send out questions to the salesperson's mobile device in the form of real-world sales scenarios. ✔ Social network Social tools are getting a lot of attention, especially as more millennial enter the sales ranks. My view is that sales managers can provide much-needed direction for salespeople who might be trying to use too many platforms at once. Instead of multiple networks, focus on cultivating a high- quality presence on the key social networks the target customers are using. As an example, special network such as B2B sales, LinkedIn and Twitter work particularly well. B.1.3 Market survey and its importance Market Research: Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy. It helps a business understand its target market by gathering and analyzing data. 2024-27 / Sales and Distribution Management- I Page 34 of 132 Source: https://www.mightyforms.com/it/blog/types-of-market-research Market research is the process of evaluating the viability of a new service or product through research conducted directly with potential customers. It allows a company to define its target market and get opinions and other feedback from consumers about their interest in a product or service. Research may be conducted in-house or by a third party that specializes in market research. It can be done through surveys and focus groups, among other ways. Test subjects are usually compensated with product samples or a small stipend for their time. Importance of Market Research Acquiring new customers and sales is the main focus of every business; market research ensures both of that. Whether it’s a sole proprietorship or a large corporation, market research is equally important for every business. Here are some of the following reasons why it’s important; Identify Problem Areas in Business Market research helps us to look for some new opportunities that our business is lacking. Once the market research is finished, then it becomes clear to us about our targeted customers and how we can approach them. There at this point, you’ll see the problems and the opportunities to manage those problematic areas. For example, it would require you to be partnered up with other businesses. Or the new sale location, or add some product bundle offer. Minimize Business Risks 2024-27 / Sales and Distribution Management- I Page 35 of 132 Having said earlier that new customers and a steady flow of sales is the main focus of every business; market research helps you to find those opportunities with minimum risk involved to achieve your market goal. However, you can minimize the risk by the number of ways like; test the product or service before launching it into the market. If your product is failing, then it would answer the questions like why your customers aren’t coming back. It would also give you a clear insight of the problem, if the sale has started dropping, then it would give you the suggestions like lower quality, problem in the site or distribution channel is taking more time. Well-informed Business Decisions When you know your problems and you also know how you can solve them by using the minimum risk. For instance, who and where your customers are and why they are dissatisfied; whether to launch a new product or discontinue the old product or service; or make some improvement in the existing product. In other words, you have all the necessary ingredients to make a clear business decision. New Areas for Expansion One of the major problems that all the business face while advertising is exactness. They don’t exactly know which audience to target. Market research tells you the demographics of your audience, their nationality, their language, and culture. Once you know your targeted market, now you can target your customers by using the paid ads tool of social media. For instance, separate ads for students on campus, completely different ads for single dads, pregnant ladies, and single moms. Market research allows you to follow a separate approach for each separate niche. Market Trends The market research gives you a clear idea about market trends like what problems people are facing and how you can solve them. The interest of people these days; whether they are playing video games or watching movies, which niche is more competitive; people want necessity products or want a luxury product and service. SWOT Analysis Market research provides you a detailed SWOT analysis like strengths, weaknesses, opportunities, and threats of business. With the help of internal and external analysis, you can make a better decision. 2024-27 / Sales and Distribution Management- I Page 36 of 132 Source:https://www.slideshare.net/slideshow/flipkart-amazon-snapdeal-swot-analysis/1213 05436 PESTLE Analysis Political, economic, social, technology, legal and environmental are known as the external factors that can affect your business operations and performance. Market research provides you a well-detailed PESTLE analysis about the environment in which you are running your business. 2024-27 / Sales and Distribution Management- I Page 37 of 132  B.1.4 Methods of Market Research We have been talking about market research; now the question is how we can perform market research. However, there are two methods of market research, primary and secondary. a) Primary Market Research Methods As the name implies primary method means that collecting the information by using the 2024-27 / Sales and Distribution Management- I Page 38 of 132 direct and primary source because it involves an in-depth analysis of some particular problem or an issue. Some of the important primary market research methods are given below; Interviews Either conducting a face to face interview or a telephonic interview; it’s an open-ended and two-way process in which the interviewer and the interview can both ask questions. Now the success of the interview depends on the quality of questions asked by the researchers. Focus only on those points where you need information, omit rest. Online Surveys A form with a list of checkpoints is sent to the audience either via email or direct message to get the feedback of the people. Some organizations offer rewards after the online survey, the purpose is to keep the interest level up. Online surveys shouldn’t be too lengthy, so the people would leave the form without even finishing and it should be made interesting. Focus Groups It is a very famous method used by businesses to observe views of experts from different fields; a focus group involves 6 to 10 people. Moderation starts the discussion and stimulates it from time to time; views, gestures and body language of the people are observed. Businesses learn which niche to focus on. Observation Observation also falls in the category of primary research method, but it doesn’t involve a direct connection between the observer and the subject. Bakery is the most common example; where cameras are installed at different locations, at which product customer spends more time is observed. b) Secondary Market Research Methods The secondary market research method means that information is collected by using the already existing data. Research reports and other documents similar to this are common examples of the secondary method. Some of the important methods of secondary market research are given below; Data available on the Internet Googling or internet surfing is a very common method of secondary data collection. Thousands of websites are there online to provide information on almost every topic. The 2024-27 / Sales and Distribution Management- I Page 39 of 132 best thing about this method is that it is free. Government & Non-government agencies Government, non-government agencies and small business centers are also a great source of secondary data collection source; where you just have to pay a certain price to get the relevant information and data that you require. Data obtained from such organizations is usually considered authentic and trustworthy. Commercial information TV stations, magazines, newspapers, Radio, and journals also fall in the category of secondary commercial data collection sources. These sources usually have the direct and first-hand link with the information. Commercial sources have a vast range of data, businesses, and organizations that want to collection collect data from these sources, and then they have to be specific about their category. B.1.5 Market Research Process We live in a very competitive business world where the market keeps on changing; high sales at one time and zero in the next month. When businesses face such issues, then market research is performed. However, market research is a step by step process, it starts with; Define the problem First of all, the main focus is to find out the exact problem. Finding the exact problem is the key to the success of market research. Develop Market Research Plan Once the problem is identified, the next step is to develop a plan that how you’re going to conduct market research. Data Collection Once the plan is laid out for the market research, collect relevant data that is helping the market research plan and answer the problem defined earlier. Analyze the Data When you have sufficient data collection to answer questions; now analyze the data to see if any pattern is being formed. If it does, then what it means to research. B.1.6 Importance of market survey ❖ Understanding the demand and supply chain of the target 2024-27 / Sales and Distribution Management- I Page 40 of 132 market: A product is most likely to be successful if it is developed by keeping in mind the demand and supply of the target market. This way, marketers can obtain insights about market capabilities to absorb new products and concepts to develop customer-centric products and features. ❖ Developing well-thought marketing plans: The World is a target market for an organization, especially a well-established one. Getting data from the target market through market research using market surveys and segmentation can be a source of creating concrete and long-term marketing plans. ❖ Figure out customer expectations and needs: All marketing activities revolve around customer acquisition. All small and large organizations require market surveys to gather feedback from their target audience regularly, using customer satisfaction tools such as Net Promoter Score, Customer Effort Score, Customer Satisfaction Score (CSAT) etc. Organizations can analyze customer feedback to measure customer experience, satisfaction, expectations etc. ❖ Accurate launch of new products: Market surveys are influential in understanding where to test new products or services. Market surveys provide marketers a platform to analyze the scope of success of upcoming products and make changes in strategizing the product according to the feedback they receive. ❖ Obtain information about customer demographics: Demographics form the core of any business and market surveys can be used to obtain intricate and sensitive details about customer demographics such as race, ethnicity or family income. 2024-27 / Sales and Distribution Management- I Page 41 of 132  C. Types of Selling C.1 Transactional Selling Using this type of sales technique, the intention of the salesperson is to overtly sell their product. There doesn’t appear to be much of a sales process. Any process that is in place normally follows the adage of ‘pile them high, sell them cheap’. It’s a quick sale. This type of selling is reserved for the one-off sale where there is not much chance of repeat business so developing a long-term relationship is not a priority for the salesperson. There’s not a massive fact find with this type of selling and the number of sales questions that are asked are limited. You’re not going to ask lots of questions when purchasing a sports bag for the gym for example! Most transactional sales occur in a business to customer (B2C) environment especially in retail stores. Meaning: Transactional selling is a negotiation strategy that focuses solely on making a sale. It emphasizes competitive pricing, social proof, and purchase urgency. The goal is to make the greatest number of individual sales possible. Transactional selling typically has very short sales cycles and low customer lifetime value. Emotional connections aren’t important in this sales methodology—what matters most is closing the sale. Reps aren’t necessarily trying to develop strong, prolonged relationships with customers. So, individuals move through the sales pipeline rapidly. 2024-27 / Sales and Distribution Management- I Page 42 of 132 In short, transactional selling’s motto might be: “One and done, and on to the next.” How can you generate value in transactional selling? Although transactional sales are generally completed quickly, like all sales they are based on convincing the prospect that your product or service delivers value. Here are some top ways to generate value with transactional selling. Build a connection. Even in brief interactions, take the time to establish rapport with your prospects. Show interest in their concerns and use preferred names or pronouns to make the prospect feel understood and valued. Incentivize immediate purchase. Create a sense of urgency by offering time-sensitive incentives like limited-time discounts, exclusive deals, or free trials. Tap into their fear of missing out to encourage them to take action swiftly. Believe in your product. Customers pick up on your authenticity, so express genuine enthusiasm for the product or service you’re selling. When you convey your excitement, it can influence the prospect to be more interested in what you’re offering. Take your time. This might sound counterintuitive when transactional sales are all about quick interactions, but rushing the conversation will damage your ability to close the deal. Take a few extra minutes to engage with the prospect and listen to any pain points they share. You could pick up on insights that lead to a successful sale. Personalize your approach. Customers want to feel that you care about them, and the best way to communicate that is to customize your pitch. Adjust your approach based on their responses and needs, and address their questions directly to increase trust. Examples of Transaction Marketing Transactional Marketing involves using specific strategies to encourage immediate customer purchases. Here are practical examples that demonstrate how businesses implement transactional marketing: 1. Flash Sales: This method revolves around offering significant discounts on products or services for a short period. The limited-time nature creates urgency, prompting customers to make quick decisions. Companies often promote flash sales online or during special events to attract customers seeking immediate deals. 2. Seasonal Promotions: Businesses frequently employ transactional marketing during specific seasons or holidays. They introduce special promotions, discounts, or bundled offers 2024-27 / Sales and Distribution Management- I Page 43 of 132 to coincide with festive periods. By aligning promotions with seasonal trends, companies entice customers to make purchases tied to the occasion, taking advantage of heightened demand. 3. One-time Discounts: This strategy involves offering temporary price reductions on products. It could include limited-time price cuts, buy-one-get-one-free offers, or similar promotions. These discounts appeal to cost-conscious consumers looking for immediate savings, motivating them to make purchases promptly. 4. Limited Stock Offers: Creating a sense of scarcity is a common tactic in transactional marketing. Companies may highlight limited stock availability for a specific product, emphasizing it as a one-time opportunity. This scarcity-driven approach compels consumers to act quickly for fear of missing out on a unique or exclusive item. 5. Contests and Giveaways: While contests and giveaways may seem more aligned with promotional efforts, they can also be transactional. By requiring participants to make a purchase or take advantage of a special offer to enter a contest or receive a free item, businesses encourage immediate transactions. This approach not only boosts sales but also generates excitement and engagement. C.2 Product-Oriented Selling As you can imagine, this is where the salesperson just talks about the product and very little else. Salespeople often get roped into this type of sale when a prospect says to them ‘what do you do and why are you selling this to me?’ It revolves around the features and benefits of the product and tries to blind the prospect with science. Demonstrations and examples of the product in action are the normal way of proceeding with this selling. Do you remember in “The Wolf of Wall Street” when Jordan Belfort asked someone in the crowd to “sell me this pen?” well, this is an example of product-orientated selling. I’m not a big fan of it because it’s mainly one way without a detailed fact find. 2024-27 / Sales and Distribution Management- I Page 44 of 132 Product-oriented companies are tech-savvy. They can innovate with new technologies to address customer needs—even if they are unknown—and generate market demand. The primary goal is to delight the customer with a high-quality product that caters to their needs better than those offered by competitors. Apple can be labelled as a product-oriented company. Apple focuses on its quality and relies on innovation to enter new markets and create demand. Apple’s product-oriented approach allows them to address the unanswered or unarticulated customer wants and needs with attractive and innovative electronics that offer a competitive advantage over similar products from rivals. Although Apple combines product and marketing orientations, its state-of-the-art tech gadgets are the reason it’s one of the world’s leading companies, second only to Amazon. That being said, Apple leverages customer service and business marketing strategies to drive customer satisfaction and boost brand loyalty even further. Advantages of product orientation include: Focus on creating and offering high-quality goods and services Innovative products that focus on providing the best user experience Better market research leading to a reduced risk Disadvantages include: Potential for missed market opportunities Product obsolescence due to technology developments Difficult to pull off if a product isn’t unique C.3 Solution Selling Using this type of sales technique, a salesperson will identify and figure out the needs of a 2024-27 / Sales and Distribution Management- I Page 45 of 132 customer through different questions and will then present a solution to those needs as is required by the customer. This creates a discourse between the salesperson and prospect but doesn’t go so far as to solve specific problems that the customer may have. This style of selling normally follows the typical sales funnel stages of A.I.D.A. Solution selling is all about selling outcomes, a solution. You will need a solid unique selling proposition and be able to demonstrate and paint a picture of what the customer’s situation will be like when their problem is solved through your solution. It’s called “solution” selling and not “product” selling for a reason: you’re selling a solution, a recommendation, or an outcome. To talk about an outcome, you need to understand the challenges and needs of where your prospect is now. Here’s a series of steps you can follow when perfecting your own solution sales techniques: Understand your customer Effective sales conversations only happen when you understand your customer. So, start there! First, explore your company’s buyer personas to familiarize yourself with the type of organization, person, and pain points you’ll be dealing with most often. This information is theoretical, and you’ll need to make adjustments when you interact with a real client, but it’s a smart place to start. Next, read up on the industry and research particular customers you plan to meet. Your customer relationship management product may help you do this using artificial intelligence 2024-27 / Sales and Distribution Management- I Page 46 of 132 (AI). Finally, use your discovery call with a potential client to ask leading questions and learn more about them. Start with the following and see where the conversation takes you: What is your biggest priority this year? What obstacles stand in your way? What solutions have you already tried? What do you stand to lose if you can’t fix this problem? What do you stand to gain if you can? By allowing your understanding of the customer to develop 1:1, you’ll capture a clear and detailed picture of the customer’s circumstances and needs. You’ll then be able to assess how your solution will fit into the bigger picture. Understand your products Solution selling may not be about selling product features, but it’s still important to understand them. After all, your product’s features are the reason you’re able to solve your customer problems. Once you have an overview of your customer’s basic needs, you’ll have the context you need to be able to map your products’ features to those challenges to identify potential solutions. Here are a few things you can do to quickly build up your understanding of your product’s features: Attend a live or pre-recorded demo of your product. A live or recorded product demo gives you a good sense of how customers are introduced to your product. It will also walk you through the most straightforward use cases of the product for you to learn. Listen to recorded sales calls or customer calls. Many organizations use call recording software to capture real-life customer feedback. Incorporate “listening tours” with customers into your routine so you can stay up-to-date with how they perceive your product. Take notes. Build a habit of taking notes and summarizing what you learn from prospects in a notebook or digital app. Reflect on these notes weekly and curate your own body of knowledge about your product’s features. Show clients exactly what they’re missing After completing the first two steps, you’ll be well on your way to a solution selling process that’s tailored to your customer’s needs, and not just a generic list of features on a sales 2024-27 / Sales and Distribution Management- I Page 47 of 132 sheet. Why? Because you’ll have a deep understanding of the problems they’re experiencing, and you’ll understand the priority of those problems. You can then map each problem to a solution or feature available in your product, and paint a picture of how this problem can be solved holistically. For example, let’s say you’re selling a cloud-based business technology solution to a small manufacturing business. Their sales reps keep losing deals because of supply chain forecasting issues. The real problem? They don’t have real-time inventory information to react and adjust proactively. Here’s what your product offers that can serve as a solution: Real-time inventory information for every stakeholder and a single source of truth will ensure they’re always on same page. With this, they can efficiently identify and get ahead of any challenges related to the supply chain. As you share these details, be sure to show them how they can succeed with your partnership, don’t tell them how your product works. Close the deal and maintain the relationship for the future The relationship-focused approach of solution selling continues throughout the sales funnel all the way up to closing the deal and beyond. In fact, our State of Sales Report highlights that the ongoing relationship with a customer is a growing area of focus for sales teams: 80% of sales reps say maintaining customer relationships after the close is increasingly important, and 92% say they are at least partially evaluated on post-sale metrics like customer value and customer retention Pros and cons of solution selling Every sales strategy has benefits and drawbacks, and solution selling is no exception. If you’re thinking about this approach, here are some pros and cons to consider. Pros of solution selling Focuses on the customer’s long-term success. Solution selling focuses on the customer’s long-term vision for their business and emphasizes eliminating challenges that are limiting their growth. This approach builds up a partnership based on trust and mutual benefit, rather than a temporary, transactional relationship. By working with you, your customer gains access to more efficiency in their business, and you capture a potentially recurring source of revenue — it’s the definition of win-win. Customized to each customer. 2024-27 / Sales and Distribution Management- I Page 48 of 132 Solution selling grows out of a 1:1 relationship with a customer, resulting in a well-designed, well-implemented recommendation that’s unique and customized to each customer. This should lead to a happier customer who is more likely to return for your input and recommendations again and again. Cons of solution selling Time commitment. Solution selling works for almost every sales scenario. But because you must prioritize long-term value and ROI over short-term gains, you will need to invest significant time and energy in building recommendations and a long-term relationship with a prospect. High-touch. Solution selling requires the salesperson to be intimately familiar with the customer and engage in in-depth conversations about their business needs, ultimately requiring more per-customer research and time in conversation than other kinds of selling. Longer sales cycles. Partly because of the increased frequency of meetings and partly because of the customization of the solution itself, solution selling can require a longer sales cycle or cadence than other kinds of selling. C.4 Consultative Selling This type of sale requires an element of trust and relationship between the salesperson and the prospect. You might think that solution selling, and consultative selling are the same, but the main difference is that in solution selling the focus is just on what the solution is. Whereas with consultative selling in addition to the solution being proposed, the salesperson will cover the features and benefits and why they should buy. The whole purpose of consultative selling is not to focus on just the product but to focus really on the relationship and how that is going to be established between the salesperson’s company 2024-27 / Sales and Distribution Management- I Page 49 of 132 and the prospect’s company. The salesperson gives their prospect a good listening and comes across an expert in their field. They advise, guide, help and nurture their prospects and clients. There’s no hard sell here like the take-away close for example! This type of selling is especially effective for solopreneurs and online coaches. This requires a constant review of how the prospect’s business can be helped by the salesperson and turns the salesperson into a form of consultant to their business. There’s plenty of sales follow up as the salesperson is constantly in touch with their clients without bugging them. They are always on hand and ready. The Consultative Selling Framework The Consultative Selling Framework provides sellers with a consistent, repeatable process to execute sales conversations more effectively. Source: https://www.richardson.com/sales-resources/defining-consultative-sales/ The Framework consists of 6 steps prepare, connect, understand, recommend, commit, and act. In the next section, we'll explore each of these steps in more detail. 1. Prepare Research your prospect’s role, as well as common challenges in their industry and recent 2024-27 / Sales and Distribution Management- I Page 50 of 132 changes at their company, to plan for a productive and engaging meeting. Check out our suite of sales tools that help embed best practices, like call preparation, into your sales team's workflow. 2. Connect Use rapport-building skills to set a positive tone for the meeting and build trust to ensure the buyer is comfortable sharing critical information. 3. Understand Use questioning skills to develop a deep understanding of the buyer's needs. 4. Recommend Formulate a value statement that draws clear connections between the customer's challenges and the proposed solution using straightforward language. 5. Commit Use process-focused communication to start closing. This step is often repeated as new stakeholders enter the conversation and the details of the solution and contract are finalized. At this stage, sellers should use agile sales techniques to get the deal over the finish line. 6. Act Maintain flawless follow-up with the customer to boost credibility and build momentum toward the final close. Understanding Customer Needs in Consultative Selling One of the core tenants of consultative selling is: a sales professional must use authentic curiosity to deeply understand customer needs. Some examples of consultative-style questions that demonstrate genuine curiosity are: ⮚ What do you want to achieve? ⮚ What are your current methods? ⮚ What’s working well? ⮚ To ensure that we are future-focused in our recommendations, what are your plans going forward? The answers to these questions provide vital insights into the customer’s challenges. Following the consultative sales process improves the seller’s ability to resolve objections and 2024-27 / Sales and Distribution Management- I Page 51 of 132 position solutions to advance the sale. Consultative Sales Skills and Techniques In consultative selling, the sales professional learns about customer needs before talking about a product or solution. Product knowledge is transformed into a tailored solution that is positioned based on the customer’s needs. For successful consultative selling discussions, focusing on avoiding being seller-centric, embracing authenticity, leading the conversation with a plan, building decisive momentum, leveraging insights through questioning, understanding the buyer's behavioral psychology, and working from facts not assumptions. In the next section, we explore these 7 key behaviors in greater detail. 1. Avoid Being Seller-centric Many sellers believe they’re customer-focused, but few truly are. Sales professionals facing pressure to close often resort to seller-centric behaviors to try to strong-arm customers or gloss over concerns. However, these behaviors erode trust. Sellers need to understand the person in the other chair. Doing so means forming an accurate diagnosis of their problem. This insight improves the seller's ability to effectively position solutions and build trust with the customer. 2. Embrace Authenticity Sales professionals must give before they get. Prioritize solving the buyer’s business challenges early in the process to foster openness. This openness helps sellers more accurately diagnose their buyer’s challenges, stated needs, and unknown needs. Using this information, the seller can show the buyer the right data to reach a resolution. 3. Lead the Conversation with a Plan A direct approach that starts the conversation with a clear intent helps sellers gain an early indication of the buyer’s expectations. If the intended path isn’t aligned with the buyer’s goals for the conversation, the seller can adjust accordingly. 4. Build Decisive Momentum Sales professionals can guide the buyer through the dialogue by eliciting feedback. This helps them get a sense of how well they understand the solutions and ideas discussed. This periodic checking develops commitment incrementally throughout the buying process. It 2024-27 / Sales and Distribution Management- I Page 52 of 132 also builds decisive momentum in which alignment with the buyer makes each successive decision easier than the last. 5. Leverage Insights through Questioning Asking progressively smarter questions helps the buyer connect the dots with a line that traces to the best solution. Insightful questions quickly get to the core issues and enable the seller to float ideas. Buyers will be more open to thinking differently about solutions when the concepts are presented as questions. 6. Understand Buyer Behavioral Psychology Buyers are human beings, and human beings have three fundamental needs for well-being that affect how they perceive what is happening, what they listen to, and how they ultimately make decisions. These needs are Autonomy, Competence, and Relatedness. Strong questioning skills help sellers respect these needs by staying emotionally connected with the buyer, avoiding coming across as manipulative, and creating a safe environment to discuss challenging or sensitive issues. 7. Work from Facts, Not Assumptions Anchoring is a form of cognitive bias where a person relies too heavily on one piece of information. Inexperienced sellers usually anchor to their own assumptions rather than seeking out the facts through dialogue. Benefits of Adopting a Consultative Selling Approach In sales, "consultative" and "solution" are often overused terms. However, true solutions require a consultative approach. Without being consultative, the so-called solution is usually little more than a standard product pitch. Sales professionals who genuinely embrace the consultative approach experience many benefits, including: Increased revenue from improved close rates and customer expansion Competitive advantage from a market-aligned sales approach Uncovered opportunities within current accounts from surfacing unrecognized needs Shortened sales cycles by driving momentum and building buyer confidence to commit 2024-27 / Sales and Distribution Management- I Page 53 of 132 Source: https://hiredna.com/how-to-use-value-based-selling-in-saas-to-drive-more-conversions/ C.5 Insight Selling Lots of research has proved that salespeople who have this specific type of salesmanship do different things to the norm. It’s based on a simple 3 level model that brings on successful results: Level one is to connect, where salespeople connect the customer needs and their company solutions to the issues that the buyers have. Level two is the convince stage, where salespeople convince their prospects, they can achieve maximum returns with lower risk and that they are the most effective company to deal with if you want the results that have been promised. Level three of insight selling is known as the collaboration stage, where salespeople bring new ideas to the table and have insights as to the future operations of the company they will be working with. It’s important to recognize that each of these types of sales has their place. If you understand the type of sale that’s absolutely right for each buyer type, then you will be in a strong position to use the specific type in the right way at the right time to bring the right results for both you and your customer. 2024-27 / Sales and Distribution Management- I Page 54 of 132 Source: https://slideplayer.com/slide/6000053/#google_vignette C.6 Social Selling 2024-27 / Sales and Distribution Management- I Page 55 of 132 Many sales professionals are moving their prospecting and selling to online methods. Gone are the days where you would make cold calls all day long. With social selling it is mainly focused on LinkedIn, Twitter and Facebook depending on what social media platform is right for your industry. With this approach it is all about profile building, networking, relationships, creating thought provoking content and then attempting to move your virtual relationships into the physical world via a meeting or a call. It requires a completely different sales mindset than traditional sales of prospecting and hammering out those cold calls. Our Social Selling Training programs are very popular, so we know that this type of selling is becoming the norm. In a nutshell, social selling is a strategic method for sellers to connect and build relationships with prospects through social networks. In recent years, social selling has morphed into virtual selling as sellers are increasingly using sales technology and sales tech (and not just social media) to connect with buyers. Social selling and virtual selling allow salespeople to build trusted relationships, boost social credibility, and ultimately reach their sales goals. The 4 pillars of social selling Social selling is built upon four key components: creating your brand, finding your buyers, engaging those buyers with relevant insights, and building lasting relationships. Each of these components is supported by the others, forming a foundation that allows you to maximize social selling. Let’s tackle them one by one: 1. Creating your brand Start by creating a professional brand account on your chosen social platform. You can create paid ads, track metrics, and craft posts demonstrating your product’s value with case studies and thought leadership content. Do your research before setting up an account. If your target audience isn’t on TikTok, then focus your energy on other platforms. Check out your competitors’ profiles. How are they drafting their “about me” section? Ask friends and colleagues to view your profile and provide their honest feedback about your tone and messages. Important tip: It is necessary to distinguish your business from personal social accounts. Personal accounts are for keeping in touch with friends and family. Business accounts are for 2024-27 / Sales and Distribution Management- I Page 56 of 132 lead generation and brand awareness. How you speak to your aunt differs from how you talk to a prospect. With a business account, you can set and maintain your brand voice and keep your brand standards consistent across all digital channels. 2. Finding your buyers Search a few of your most loyal customers and see what platforms they spend the most time on. You can then expand your search by viewing who is in their network. If you don’t have an established customer base, you can see who is following your competitor’s profiles or search for posts with trending hashtags that speak to the solutions you offer. The tools you use also play a major role. We’ll discuss those in-depth further down. 3. Engaging them with insights Team up with your marketing department to highlight the latest blogs, reports, and thought leadership assets. You’ll want these handy when leaving a comment or messaging a prospect. Don’t just randomly chat with someone. Make sure the comment i