Sales management is an important part of an organization's business

cycle. Whether you are selling a service or a product, sales managers are
responsible for leading the sales force, setting the objectives for the team,
planning and controlling the entire sales process, and ultimately ensuring the
execution of the team vision. More than any other group in an organization, the
role of a sales team is probably the most crucial one, since it has a direct impact
on an organization's revenue.

“Marketing management is the analysis, planning implementation and control of

programmes designed to bring about desired exchanges with target markets for
the purpose of achieving organisational objectives

To achieve this objective the organisation has to give heed to the right pricing,
effective advertising and sales promotion, discerning distribution and
stimulating the consumer’s through the best services. To sum up, marketing
management may be defined as the process of management of marketing
programmes for accomplishing organisational goals and objectives. It involves
planning, implementation and control of marketing programmes or campaigns.

Functions:
(i) Sales research and planning(ii) Demand creation.(iii) Sales costs and
budget.(iv) Price fixations.(v) Development of products (vi)Establishing sales
territories.(vii) Co-ordination of sales..These functions differ from company to
company according to their size and the nature of their products.

GOAL SETTING :- Goal setting is usually based on a company's overall sales goals,
modified by the mix of products to be moved. Overall sales goals must be met, of
course, but balance must also be maintained. A company that makes three
different types of boats, for instance, of which the highest-priced model has the
highest profit margins but the lowest-priced boat is easiest to sell, the goal will
be structured to move as many of the highest-priced models as possible

PLANNING, BUDGETING, AND ORGANIZING :- After goals are set, the sales manager
may accept, or be required to modify, the general approach to sales in the current
year. Both ongoing patterns and new ones require budgeting and, occasionally,
changes to the organization. Fundamental structural issues are involved such as
the distribution channel, the forces to be deployed, and the sales program
(incentives, pricing schedules, cooperative advertising programs, etc.) that will
be used. A company, for instance, may be engaged in making a transition from
direct sales using its own sales branches as distributors to using independent
distributors.
IMPLEMENTATION :- Implementation of the plan will have different emphases
depending on whether the operation is up and running or required to be built or
rebuilt. Recruiting, training, and setting compensation are primary
implementation activities of start-ups or expansions. So are designing sales
territories and assigning sales goals to each.

CONTROLLING AND EVALUATING :- After the sales plan has been implemented,
the sales manager's responsibility becomes controlling and evaluating the
program. During this stage, the sales manager compares the original goals and
objectives with the actual accomplishments of the sales force. The performance
of each individual is compared with goals or quotas, looking at elements such as
expenses, sales volume, customer satisfaction, and cash flow.

REGULATION :- Besides markets and industries, another chief environmental

influence on the sales management process is government regulation. Indeed,
selling activities at companies are regulated by a multitude of state and federal
laws designed to protect consumers, foster competitive markets, and discourage
unfair business practices. Chief among anti-trust provisions affecting sales
managers is the Robinson-Patman Act, which prohibits companies from engaging
in price or service discrimination.

Sales forecasting is the process of estimating future sales. Accurate sales

forecasts enable companies to make informed business decisions and predict short-
term and long-term performance. Companies can base their forecasts on
past sales data, industry-wide comparisons, and economic trends.

1 Jury Method 2 Survey of Expert’s Opinions 3. Test Marketing Result.4.

Consumer’s Buying Plan.5. Market Factor Analysis.6. Expert Opinion 7.
Econometric Model Building.8. Past Sales (Historical Method).9. Statistical
Methods.

1. Jury of Executive Opinion: -This method of sales forecasting is the oldest.

One or more of the executives, who are experienced and have good knowledge of
the market factors make out the expected sales. The executives are responsible
while forecasting sales figures through estimates and experiences

2. Sales Force Opinion:-Under this method, salesmen, or intermediaries are

required to make out an estimate sales in their respective territories for a given
period. Salesmen are in close touch with the consumers and possess good
knowledge about the future demand trend. Thus all the sales force estimates are
processed, integrated, modified, and a sales volume estimate formed for the
whole market, for the given period.

3. Test Marketing Result:

Under the market test method, products are introduced in a limited geographical
area and the result is studied. Taking this result as a base, sales forecast is made.
This test is conducted as a sample on pre-test basis in order to understand the
market response.

4. Consumers’ Buying Plan:

Consumers, as a source of information, are approached to know their likely
purchases during the period under a given set of conditions. This method is
suitable when there are few customers. This type of forecasting is generally
adopted for industrial goods. It is suitable for industries, which produce costly
goods to a limited number of buyers- wholesalers, retailers, potential consumers
etc.

5. Market Factor Analysis:- A company’s sales may depend on the behaviour

of certain market factors. The principal factors which affect the sales may be
determined. By studying the behaviours of the factors, forecasting should be
made. Correlation is the statistical analysis which analyses the degree of extent
to which two variables fluctuate with reference to each other.

6. Expert Opinion: -Many types of consultancy agencies have entered into the
field of sales. The consultancy agency has specialized experts in the respective
field. This includes dealers, trade associations etc

7. Econometric Model Building:-This is a mathematical approach of study

and is an ideal way to forecast sales. This method is more useful for marketing
durable goods. It is in the form of equations, which represent a set of
relationships among different demand determining market factors. By analyzing
the market factors and sales , sales are forecast.
9. Statistical Methods:-Statistical methods are considered to be superior
techniques of sales forecasting, because their reliability is higher than that of
other techniques.

Distribution management refers to the process of overseeing the movement

of goods from supplier or manufacturer to point of sale. It is an overarching term
that refers to numerous activities and processes such as packaging, inventory,
warehousing, supply chain, and logistics.

Objectives :
(i) To Give Better Customer Service:-By improving the physical
distribution system, the company’s promotional efforts are
strengthened.
(ii) To Enhance Sales:-By making sure that basic products in regular demand
are always available, and having contingency plans for quick order processing of
items.
(iii) To Decrease Cost:- By intelligently organising the physical distribution
system and determining the optimum number and location of warehouses,
improving materials handling, increasing stock turnover, and using sealed
containers to ship products.

Types of Intermediaries :-These are the middlemen that ensure smooth

and effective distribution of goods over your chosen geographical market.
Middlemen are a very important factor in the distribution process. let us take a
look at the types of middlemen we usually find.
1] Agents:-Agents are middlemen who represent the produces to the
customer. They are merely an extension of the company but the company is
generally bound by the actions of its agents. One thing to keep in mind,
the ownership of the goods do not pass to the agent. They only work on fees
and commissions.

2] Wholesalers:-Wholesalers buy the goods from the producers directly. One

important characteristic of wholesalers is that they buy in bulk at a lower rate
than retail price. They store and warehouse huge quantities of the products and
sell them to other intermediaries in smaller quantities for a profit.Wholesalers
generally do not sell to the end consumer directly. They sell to other middlemen
like retailers or distributors.

3] Distributors:-Distributors are similar to wholesalers in their function.

Except they have a contract to carry goods from only one producer or company.
They do not stock a variety of products from various brands. They are under
contract to deal in particular products of only one parent company

4] Retailers:-Retailers are basically shop owners. Whether it is your local

grocery store or the mall in your area they are all retailers. The only difference is
in their sizes. Retailers will procure the goods from wholesaler or distributors
and sell it to the final consumers. They will sell these products at a profit margin
to their customers.
Meaning of compensating sales force Compensating sales force means giving
monetary and non monetary benefits in return for the services rendered by sales
force. The basic sales force compensation elements are salary , commission ,
bonus, fringe benefits or any combination of thes

1. Meaning of compensating sales force Compensating sales force means giving

monetary and non monetary benefits in return for the services rendered by sales
force. The basic sales force compensation elements are salary , commission , bonus,
fringe benefits or any combination of these.

2. Components of compensation plan Fixed component It provides stable income to

the sales force. It is in the form of salary. Variable component It has a motivational
role and it is linked with job performance of the sales force. It is given in the form of
commission.

3. Definition of compensating sales force “ A sound sales compensation plan must

have three elements: Attract skilled and well- motivated sales personnel towards
organisation. Motivate sales persons. Retain efficient sales persons in the
organisation.” According to Phillip Kotler

4. Methods of sales force compensation 1. Straight salary method :- This is simplest

compensation plan in which salesman receive fixed salary at regular interval of time .
Generally , salary is paid to sales force according to salary grade approved at the
time of appointment . Under this grade , generally sales force continue to get annual
increments and are paid other allowances like dearness allowance ,meals allowance,
travelling allowance , medical allowance

Training programme is designed for sales-force on the basis of the experience gained
by the sales executive, nature of the job and the difficulties encountered by the
sales-force. A training programme is the detailed training material with emphasis on
difficulties faced by the salesmen

A.Individual training methods:-Individual sales methods are micro-level

training methods designed from the angle of each salesman. These represent
individualistic and highly personalized approach involving direct interaction
between the trainer and the trainee.

1. On the job training:-It is that method under which salesman is given the
opportunity of observing and performing the selling job of a typical salesman.
Keen observation and active participation are the tenets of learning on the job
2. Programmed instruction:-Programmed instruction or learning is a linear
programme of instruction in which the total subject matter of training is broken
down into certain chunks called ‘frames’ the numbered instructional units.
B.Group training methods:Group training methods are those that are employed in
training the salesmen in group. Here, the trainees may be passive observers or
listeners or can be active participants
1. Lectures.2. Discussions.3. Role playing.4. Sensitive training
Importance of Material Management:
Material management is a service function. It is as important as manufacturing,
engineering and finance. The supply of proper quality of materials is essential for
manufacturing standard products. The avoidance of material wastage helps in
controlling cost of production. Material management is essential for every type of
concern.

The importance of material management may be summarized as follows:

1. The material cost content of total cost is kept at a reasonable level. Scientific
purchasing helps in acquiring materials at reasonable prices. Proper storing of
materials also helps in reducing their wastages. These factors help in controlling
cost content of products.
2. The cost of indirect materials is kept under check. Sometimes cost of indirect
materials also increases total cost of production because there is no proper
control over such materials.
3. The equipment is properly utilized because there are no break downs due to
late supply of materials.
4. The loss of direct labour is avoided.
5. The wastages of materials at the stage of storage as well as their movement is
kept under control.
6. The supply of materials is prompt and late delivery instances are only few.
7. The investments on materials are kept under control as under and over
stocking is avoided.
8. Congestion in the stores and at different stages of manufacturing is avoided.