Introduction to sales and distribution management Meaning of sales managementSales management means the planning, direction, and control

of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating. It also engages a sales force. It is the attainment of an organization's salesgoals in an effective & efficient manner through planning, staffing, training, leading &controlling organizational resources

The sales manager is the person responsible for leading and guiding a team of salespeople.

Definition of sales managementAccording to American Marketing Association, `Sales management is the management of Sales Force. ` How to manage-

Right person right job right place right time right compensation right qualifications Relationship Based Selling Relationship based selling means that the company takes care of customer specifications. Buyer is the king not the seller In other words, doing business in such a way that company is worthy of customers trust. Company is buyer based, not seller centric.

Nature and scope of sales management Integration with marketing management relationship selling varying sales responsibilities

THE SCOPE OF THE SALES MANAGEMENT VARIES WITH THE -NATURE OF THE INDUSTRY -PRODUCTLINES -GEOGRAPHICAL SPREAD -NATURE OF SELLING EXAMPLE-in hotel industry, there is only one sales manager [ one man job] -in consumer industry, there is sales manager supported by zone managers / sales representatives.

The scope of the sales management, in broad terms includes, The following Establish Sales force objectives Organizing the Sales force Recruiting and Selecting Salespeople Training Sales Personnel Compensating Sales People Motivating Sales People Developing sales plans Developing sales development programs

Process of sales management / how to design and manage a sales force

Controlling

Setting objectives

Implementing

Process of sales management

Training and development Deciding compensation

Planning

Recruitment and selection of sales force

Problems coordination lack of information lack of authority lack of communication less supervision lack of customer interest target setting sales forecasting

Leads to
Functions of sales manager discovering new ideas for better results marketing products managing conflicts responding feedback performing sales management function assigning sales territories to sales force meeting with sales force deciding the strategies market research product research advising top management on various sales issues setting targets

 controlling targets maintaining healthy relationship customers monitoring sales policies

Duties of sales manager

To yourself

To company

To customers

To yourself-A sales manager must be very clear about his role in the organization. He should know what he is supposed to do at the workplace. To company A sales manager plays a key role in the success and failure of an organization. He is the one who plays a pivotal role in achieving the sales targets and eventually generates revenue for the organization. A sales manager devises strategies and techniques necessary for achieving the sales targets. He is the one who decides the future course of action for his team members. A sales manager is also responsible for brand promotion. To customers listening to customer requirements and presenting appropriately to make a sale; maintaining and developing relationships with existing customers in person and via telephone calls and emails;

 cold calling to arrange meetings with potential customers to prospect for new business; responding to incoming email and phone enquiries; acting as a contact between a company and its existing and potential markets; negotiating the terms of an agreement and closing sales. Skills of sales manager

People skills- motivation, leadership, communication, and coordination Managing skills- planning, organizing, controlling, and decision making Technical skills- training, selling, negotiation and working on computers etc

Selling process determine objectives deciding strategies review

Alternative selling process1. Prospect for Leads You can't prospect effectively without knowing all about your product(s). If you don't understand the product, how could you know who will want to buy it? 2. Set an Appointment It's time to use those leads you collected in stage 1. Many salespeople prefer to cold call over the phone, but you can also call in person, send email or even mail out sales letters. 3. Qualify the Prospect

The qualification stage usually takes place at the appointment itself, although you can also qualify briefly during your initial contact. The idea is to confirm that your prospect is both able and potentially willing to buy your product. 4. Make Your Presentation The presentation is the core of every sales cycle, and it's probably where you'll invest the most preparation time. Keep in mind that you're not just selling your product... you are also selling yourself! You represent your company, so appearance counts. 5. Address the Prospect's Objections Here's where you get to deal with your prospect's concerns. The one you'll hear most often? I have to think about it. 6. Close the Sale Once you've made your presentation and answered your prospect's questions and objections, it's time to ask for the sale. This is the secondmost neglected stage of the sales cycle. which is especially sad given that it's probably the most critical one. 7. Ask for Referrals This is hands down the most commonly neglected step. Too many salespeople are so relieved to get a sale that they grab their things and race out the door the second they get the chance, for fear the prospect will change their mind

Sales strategies-: 1. Relationship strategy- Buyer and seller act as partners and maintains a good relation. P- Preparing strategically for a long term high quality relationship to solve customers problems A- Ask questions from the potential buyers regarding their needs R- Restates customers need T- Team with support people to provide the customer with solutions N- Negotiation (double win solutions should be adopted) E- Exceeds customer satisfaction R- Review 2. Double win strategy- there are basically two approaches under this strategyWin-lose approach- under this approach one party loses either the buyer or the seller. One of the them has to bear the loss. Features are: See a problem Fix the blame Let loss happen to them Lives in the past Make promises that never keep

Win-win approach- under this approach both the parties remain in benefits. Both the parties earn profits as goods are produced what consumer wants and is charged fairly so there is no loss to seller also. Feature are Help others to solve the problems Fix what caused the problem Make life a joyous happening for others and themselves Leaves the past, lives in the present and set goals for the future Make commitments to others and themselves and keep both of them. 3. Instant service- aims at Q-C-D Triangle i.e. highest quality, lowest cost and least delivery times. Customer delight is achieved by combining:Supply chain management After sale services Unique selling positioning/ brand equity Exceeding customer expectations Process management- it means how much cost is involved in a particular process. Main aim is to keep the cost minimum. Features are as follows On time delivery Competitive prices Reliability of product or service Uniqueness of product or service 4. Hard sell vs. soft sellHard sell- where goods arent produced according to customers specifications. Features are as follows: Concern for self Canned presentation

 Talking Pushing product Presenting features Advocating without acknowledging Soft sell- where goods are produced exactly what the consumer wants or desires. Features are as follows: Concern for customer Questions for discussions Listening Providing buying opportunities Presenting benefits Acknowledging needs 5. Integrated sales strategyUnder this strategy no strategies are formulated before hand. Everything is done considering business and customer both. Goods are produced according to customers desire. 6. Client centered sales strategyIt considers: What client is What he or she does Where, when, why and how he or she does it His needs are analyzed And goods are offered according to his preferences

Methods of selling-

Tele-marketing Tele-marketing Sale on Sale on Internet Internet

Sales through Sales through large scale large scale stores stores

Methods ofof Methods selling selling

Sales through Sales through whole sellers whole sellers and retailers and retailers

Direct Direct selling selling

Tele-marketing- this is the concept of Selling product on the phone. it is direct marketing tool It is very cheap and reliable method. It is limited to consumer durables. For example; customer care or home shop 18 etc Sale on internet- under this method product can be seen, a buyer can see free demonstration on the internet itself, Product features can be seen. Customer has to be fully aware. For example snapdeal.com, myntra.com, flipcart.com etc Sales through large scale stores- these stores are mostly present in urban areas due to increased flow of manufactured goods. These can be of various kinds like Departmental stores Chain stores like easy day

 Mail order houses Hire purchase shops Super markets like big bazaar Fixed price shops Cooperative stores Sales through whole sellers and retailers- Following functions are performed by whole sellers and retailers Assembling and buying Storing and warehousing Transporting Financing Risk bearing Grading, packing and packaging Providing market information Advertising Selling Direct selling- in this relationship of company and customer starts building even before the sale of product. For example Avon, Amway and Eureka Forbes etc. Factors affecting method of selling

Nature of product Price of the product Cost of the product Size of the market Consumer convenience Policy of organization

Types of sales manager

Top level manager- these are those managers who are responsible for Sales planning Scanning external environment Setting short and long term objectives Developing strategies Making decision for implementing of strategies Controlling performance Coordination of various functional areas Regional level manager- these are those managers who are responsible for Device strategies Executes plans made by top level Act as linking pin between lower level and top level Manage several branches Operational/ branch/ first line managers- these are those managers who are responsible for Appoints sales person Monitor performance Motivate sales person Provide day to day supervision to the sales person Types of compensation plans-: There are two types of compensation plansFinancial and non financial compensation plans Financial compensation-:

Those incentives which satisfy the subordinates by providing them rewards in terms of rupees. Money has been recognized as a chief source of satisfying the needs of people. Money is also helpful to satisfy the social needs by possessing various material items. They include compensation, salary, fringe benefits and incentives. It should: Provide a regular income at minimum level Simple and easy to understand for the sales man Economical Encourage competition among salesmen Fair to both sales force and management

Commissio n on sales Profit sharing

Bonuses

Insurance schemes

Financial plans

Offering shares

Fringe benefits in kind Performance related pay

Pensions

This method also includes reimbursement of expenses incurred by sales persons for the sales of goods and services i.e. meals and entertainment air travel automobile rentals lodging travel account tour expenses account

 communication and service expense account Non financial compensation:These include motivation and its implication to sales management. So, some fringe benefits are available for the purpose:

Praise or recognitio n

Security of service

Suggestio n scheme

Job enrichment

Non financial incentive s

Promotion opportunities

Participatio n in decision making Laundry benefits Insuranc e schemes

Medical expenses

Some other non financial compensation plans are: company car supplemental life insurance and medical insurance schemes tax return participation personal tax and financial planning low or no interest loans deferred compensation retirement benefits relocation benefits stationary facilities air travel and first class AC for train travel etc special perquisites for outstanding performance special business associates membership