Nature and Scope of Sales Management

MBA III Punjabi University

According to a jobs provider company Manpower, sales positions are the hardest to fill. Sales one of the most expensive activities in any firm (constitutes more than 20% of revenue) Starting salaries for sales people higher than most of other positions Many CEOs like Mark Hurd (HP), start in sales

What is Sales Management?

Sales management is defined as the activities required to lead, direct, or supervise the personal selling efforts of an organization. Sales management is also defines as the attainment of sales force goals in an effective and efficient manner through:
o Planning o Staffing o Training o Leading o Controlling firms resources

Nature of sales management

Is an art
oConceptual skills oPeople skills oTechnical skills oDecision skills

Is a science
oIs a process with definite steps

Contd

Aids in achievement of organizational objectives

oThrough relationships (both business and consumer) oMonitoring performance oRealize profits

Scope of sales management

Encompasses several activities of a manager Manage marketing activities (4 Ps) Marketing research and intelligence Applicable at all places where selling is done:
Manufacturing and wholesale Retail Services (banking, insurance, software)

Contd.

Employable in firms which have no direct sales function like for manufacturing intermediaries Has several roles such as recruitment and selection, training, compensation, appraisal, motivations, assignment, organizing, etc. 3 major objectives of sales management:
Sales volume Contribution to profits Continuing growth

Contd

Implement control
Set standards and communicate Measure and evaluate actual performance Take corrective action

FIGURE 1.1 A SALES PERSONNEL CAREER PATH

President Vice President of Marketing

National Sales Mgr.

Zone Sales Manager Regional Sales Manager District Sales Manager Key Account Salesperson Salesperson

Sales Trainee

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

PLANNING

The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

STAFFING

Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

SALES TRAINING

The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

LEADING

The ability to influence other people toward the attainment of objectives.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

CONTROLLING

Monitoring sales personnels activities, determining whether the organization is on target toward its goals, and making corrections as necessary.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

SALES PERFORMANCE

Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.

FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

CE O Presiden t Vice President of Marketing National Sales Leader Zone Sales Leader Regional Sales Leader District Sales Leader Assistant District Sales Leader Nonmanagerial Salespeople Sales Trainee Salesperson

Top Sales Leaders (Strategic)

Middle Sales Leaders (Tactical)

First-Line Sales Leaders (Operational)

Key Account

Basis of Difference

MARKETING MANAGEMENT

SALES MANAGEMENT

1. SCOPE

Marketing management is The scope of sales a very wide term. It includes management is less in Sales management. comparison to marketing management. It is a part of marketing. It is a new concept in comparison to Sales management. It includes all the activities performed for promoting customer satisfaction. It includes activities of consumer research so as to identify customers need, preferences, tastes, so that product planning and development can be done according to customers preferences. It includes Selling activities. It is an old concept.

2. Evolution

3. Activities

It mainly includes selling activities related to transfer of ownership of goods an services from seller to buyer.

Basis of Difference 4. Producer V/s Consumer oriented

MARKETING MANAGEMENT It is customer oriented. It stresses on consumer needs, satisfaction and welfare. It emphasizes on Profitmaximization through promoting customer satisfaction. Marketing Manager works under the General manager of Organization

SALES MANAGEMENT It is Producer- oriented. Its main aim is to increase sales and earn more profits for manufacturer or seller. It emphasizes on profit maximization through sales maximization.

5. Approach to Profit

6.Control

Sales Manager works under Marketing Manager