Selling Strategies Methods Techniques In Sales Management

Selling Strategies Methods Techniques in Sales Management – There are two types of selling strategies, first is “Direct” and second is “Indirect” in sales management.

Definition of Direct Selling: Exchange of products or services directly to consumers on personal basis. 

What is Direct Selling: The product is sold to consumers avoiding the intermediaries within the provision chain. The salesperson gets in direct contact with the patron to deliver the merchandise or service to the house, workplace, or alternative area. This sort of transaction is helpful for consumers of remote areas, thus making goods available.    

Direct Selling Business Model:

a. Single Level – This could be face-to-face transaction (door-to-door or one-on-one presentation). The exchange of goods or service is completed on to the consumer directly; each sales rep is responsible for his sale.

   b. Party Plan or Host Level – It’s a crowd or a group product exchange. The presentations are made by hosting social events and offering products available.

c. Multi-Level – The transaction of products or services is created through the network of independent direct sellers. The remuneration of a sales rep is collective of his independent sale and also the sale through his network channel.

Point to Remember:

To make an on the spot sale, the following points should be considered –

a. Build a relationship, not a purchase – The sale representative must build the relevance of the client before the sale. This model requires direct contact with the client and relation is the key to success.

b. Know your product – The sales rep must know and understand the merchandise he's trading. The sale must be made during an awfully limited time and there's no second chance in direct business dealing, so eat-sleep-drink your product/service.

c. Know your customer - Understand your customer, their needs, and requirement. Offer what the customer requires and this might happen only after understanding the customer behavior, taste, and financial implications.

d. Upgrade yourself – Upgrade your skills. Knowledge is that the key to success thus attempts to understand the local market, competition, and demographical requirement of your working ground.

e. Build your network – Make relation and build your network as you've to comprehend the success market player. People-sell-People, so build your brigade who are your sales machines.

f. Do your homework – Know your workplace, understand the society, locals whom you're presenting the merchandise. Work on your script, presentation, setups, and geographical needs.

Advantages of Direct Selling Method:

a. You're the Boss of your product presentation. Do whatever you would like to make a buying deal. Your experience is with you.

b. You're an entrepreneur, you'll work from anywhere. You may be able to work at your convenience, anywhere, anytime.

c. No specialization required, your experience and skill are everything. No need for specific education or degrees.

d. Time is money, work for the foremost amount of your time as you wish. The longer into your presentation means more sales, more sales mean extra money.

e. You're in direct touch along with your client hence you're the director and actor of your presentation.

Disadvantages of Direct Selling:

a. Two is typically better than one, you alone have to make product presentations directly unless making multi-level.

b. Limited income option, as there is a single-level sale presentation.

Definition of Indirect Selling: Indirect Sales is additionally a buying deal of fine or service by a third party.

What is Indirect Selling: Indirect Sales is performed with the assistance of intermediaries or middleman or partner as there's not any direct contact between seller and buyer. 

Indirect sales allow companies to sell more products and services without an extensive network of staff and thus expanding geographically. Indirect sale is provided by a third- party like a reseller, affiliate, etc.

 

Indirect Sales Strategies:

(a)  Affiliates – Person or an organization that sells products or services to customers for exchange of commission. Affiliates are paid only the sale is formed. Affiliate sale is popular in online business. Online promotion is done to attract traffic using various tools and scripts.

(b) Re-sellers Programs - Identical to affiliates but are smaller in scope, Reseller Programs are usually tech products and customary in hardware and software industries. Resellers interact with the customer on behalf of the corporate. Reseller partners consider promotion to create a buying deal it's very fashionable in software industries and technology hardware. (e.g. Apple reseller program)

(c)  Independent Sales Representatives – Independent Sales Representatives represent product or service during a really specific region. Independent Sales Representatives are easy to rescale or down as they're lower overheads (like cutting travel and office expenses) and are paid on a commission basis on new business and renewal business. (e.g. insurance industry agent)

(d) System Integrators – System Integrators promote “solutions” to the patrons. Usually, in B2B system/contacts, they target system integration by bringing together sub-systems into one system. (e.g. companies like IBM as they supply the software and hardware solutions) 

Types of Indirect Sales:

(a)  Franchising - Leasing out a widely known brand or trademark and paying interest to the brand owner for purchasing the franchise.

(b) Dealership - Dealers are special agents who buy goods at wholesale prices and resell them with an additional charge at retail to other firms. 

Advantages of Indirect Method:

(a)  Minimum costs for the organization of jobs: it's more cost-effective to outsource your sales functions once you think about the value of hiring, training, and equipping new salespeople for your team.

(b) Easier to scale: Indirect sales channels enable you to rescale after you would like to enter a fresh market or increase sales in existing markets. It’s also easier to scale down when sales decline or your internal sales teams can handle existing sales.

(c)  The efficiency of this work: Employing third parties to sell your products or services enables you to specialize in other areas of your business (e.g., development and quality, employee training, operations, marketing). It also allows you to use your resources in other areas of the business that require support.

(d) Less risk: Trading through indirect sales channels may be less risky thanks to evaluating new or existing products in new markets.

(e)  Established trust: Indirect sales channels have already got established relationships with customers and markets. They’ll save the time of trying to enter a fresh market and reach new customers.

(f)  Raising the quantity of product distribution

 

Disadvantages of Indirect Selling:

(a)  Loss of personal bond between seller and purchaser: The third party could limit or eliminate your involvement within the sales process; it could also take longer for your product or service to realize the customer.

(b) Loss of control over brand: Since a 3rd party is transacting your product or service, you'll be ready to lose control over how your brand is marketed and perceived. This might make it tougher to work out brand loyalty. Customer service is compromised.

(c)  Uncertain revenues: Since you've no control over the sales process, you'll not accurately predict your revenue stream.

(d) Shared revenues: hoping on the link with the third party, you'll share a percentage of your sales revenue with your partners.

(e)  Inability to appear at and track the products independently

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