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Leni Varghese
SALES MANAGEMENT
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“Sales Management is the most
critical activity and the most
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difficult function in an organization.
It is like fuel to an engine.”
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“You can take away my money and take away
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Sales Management
"The planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising,
paying and motivating as these tasks apply to personal sales
force."
- The American Marketing Association defines Sales Management
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Sharing of information with other departments
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How do you identify customers?
How do you approach a potential customer?
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The Deal
(Terms, credit, availability, delivery,
installation, ongoing support & applications)
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Why do you lose existing accounts to
competitors?
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What can you do to strengthen
relationships with your existing
customers?
What factors might get in the way of
achieving these goals?
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Death of the Salesman – Arthur Miller
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Cold calling / Door knocking / door-to-door selling?
Product & services?
Prospect / customer / consumer
Sale Gestation period (time from enquiry to sale) /
Lead Time (from order to delivery)
Profit margin (SP – Cost) / Mark-up (Cost + Profit)
Customers, consumers, prospects?
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Nature of Sales Management
v Crucial function of an organization
v Only revenue generating function in the
organization
v Contribute to Profits
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v Helps in attaining long term growth
v Selling helps an organization achieve its business
goals.
v Integration with marketing management
i. Field Selling – Personal selling
ii. Head-quarter marketing team – Promotion,
Marketing research, Marketing Logistics,
Customer service, Coordination
v Relationship Selling
i. Transactional Selling
ii. Value-added relationship Selling
iii.Collaborative Partnering Relationship Selling 11
v Varying Sales Positions & Responsibilities
v
Essence of Sales Management
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mer is the Boss – “Yesterday, Today & Tomorrow”
Customer is Profit – Everyone else is Overhead
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Scope of Sales Management
Strategic
Tactical
Operational
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A Changing Market Place
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International Considerations
Ethnic Composition
Religious Orientation
Social Class Environment
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Education
Gender Bias
Differences in Negotiation styles
Differences in decision making
Job Status and Company Protocol
Perceptions of time
Personal Relationships
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Role of Sales Manager
Objectives are Decided
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Strategies are formulated
Delegation to Salesman
Time bound Goals
Achievement
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Responsibilities of a Sales Manager
Understanding the economic structure of the industry
Identifying segments within your market
Identifying your target market
Identifying your best customer in place
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Undertaking market research to develop Profiles (demographic,
psychographic and behavioural) of your core customer
Understanding your competitors and their products.
Developing new products
Undertake environmental scanning mechanism to detect opportunities and
threats.
Understanding your company’s strengths and weaknesses
Auditing your customers’ experience of your brand
Developing marketing strategies for each marketing mix.
Creating a sustainable competitive advantage
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Objectives of Sales Management
Quantitative Objective
Qualitative Objective
Sales
Provide technical advice to
Revenue customers
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Profits Provide training to middleman’s
Market Share sales personnel
Controlling Internal Costs Collect & report relevant market
To obtain new accounts - Sales information to the
To retain & capture market share –
management
Market Share Maintain customer relationship
To increase sales volume - Revenue Sales team successfully delivers
To determine sales volume that the company’s value
contributes to profitability - Profits proposition, brand strategy
and message
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For sustainable
By keeping expenses low competitive advantage
Difference between sales and Marketing
Marketing and sales are close relatives. Marketing sets the
scene. Sales finish the job. When all else is said and done,
marketing is part of the sales process. Sales is the end result of
marketing.
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Sales is a part of marketing. It is the transfer of title of
ownership of goods.
Marketing is concept oriented and sales is product oriented.
Marketing function creates the dark function and sales
function craft the rain.
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Benefits of Effective Sales Management
Higher quality and professionalism.
Easier sales.
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Less turn over.
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Challenges to Sales Management
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vDispersed prospects
vHigh Cost of sales
vLow revenue per customer
vIneffective channel sales team.
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Responsibilities of Sales Management
Building the right sales strategy
Hiring the right team
Creating the right compensation plans,
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territories and quotas
Setting the right projections
Motivating your team
Tracking revenue against goals
Resolving conflicts
Training and coaching sales reps
Managing processes
Getting the sale!
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Sales Management Process
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Disqualify
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DUTIES OF THE SALES MANAGER
Holds a unique position in the sales organisation.
Plans, organises, directs, staffs & coordinates whole sales
organisation.
He is the person who steers the wheels of sales organisation.
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His status and power depends on the size of the organisation
in
his charge.
In small firms the general manager or managing director
performs this duty.
But in big manufacturing firms there usually a sales manger.
In giant sized companies for some territories and/or products
sales managers are appointed.
Whatever the position of the sales manager, he is the guiding
and driving force of the sales organisation
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Holds a unique position in the sales organisation.
Plans, organises, directs, staffs & coordinates whole sales
organisation.
He is the person who steers the wheels of sales organisation.
His status and power depends on the size of the organisation in
his charge.
In small firms the general manager or managing director
performs this duty.
But in big manufacturing firms there usually a sales manger.
In giant sized companies for some territories and/or products
sales managers are appointed.
Whatever the position of the sales manager, he is the guiding
and driving force of the sales organisation
Environmental Changes affecting Sales
Management
Shorter Product Life Cycle
Longer, More Complex Sales Cycle
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Reduced Customer loyalty
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Sales Strategies
Sales Marketing Salesforce Salesforce
Objectives
Increase / Strategy Strategy Tactics
Goals (Action Plans)
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How do they obtain their
goals?
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Planning for sales
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SALES FUNNEL
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Why Sales so Important
sales team is the voice of your company
The sales team will make or break your marketing
efforts.
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Sales and marketing serve one purpose: to
generate revenue.
The sales team does a great job delivering the
company’s value proposition, brand strategy and
messages.
sales team is a revenue machine.
Sales – cost of sales = gross margin
Gross margin – expenses = net profit
Sales, gross margin and expenses are affected by
the caliber and performance of sales management
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Adaptive Sales Management
Strategic Planning: Areas of focus and activity are centrally
defined at the SAM Server by Management. Sales,
marketing and product management can define customer
call routes, key call objectives, campaign activities,
competitor intelligence, Plano-grams and sales best
practices etc. Product and pricing information is loaded
and synchronised as required with other systems.
Tactical Planning: Field representatives digest the information
that Management has pushed out to them through SAM and
plan their days accordingly.
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In-Field Execution: Field representatives use SAM in the field
to make well organised and highly focused calls. Field
activities are aligned with corporate strategies and allow
focus to be on selling, relationship building, and customer
service. SAM is also a sales and communication tool, with
important news, presentations, product information and
advertisements being instantly available for viewing with
the customer.
Market Intelligence: While in the call, field representatives
gather important customer and market information, this can
be through the use of surveys, merchandising, ranging etc
Information Exchange: As frequently as necessary
information is sent to/synchronised with the SAM server to
facilitate collaboration with other workers and provide
information for analysis and reporting.
Rapid Information Analysis: SAM Analytics is a complete
Business Intelligence tool, that allows information to be
reported, analysed and interpreted in a fast efficient manner
by the appropriate person/s within the company.
Strategic Planning begins the cycle again, but with the
opportunity to improve effectiveness, adapt to market /
competitive forces and ultimately enhance the entire sales
process for increased sales and a markedly improved
customer experience.
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