Sales Management

Unit-1

In the Unit-1
Sales Management Introduction
Evolution of Sales Management (Still; Ch-1) Nature and Importance of Sales Management (Havildar; Ch-1) Meaning and Definition of Sales Management (Still;Ch-1) Responsibility of Sales Manager (Still; Ch-1) Objectives of Sales Management (Still; Ch-1) Functions of Sales Management (Still; Ch-1) Role and Functions of Sales Manager/Executive (Still; Ch-1) Sales Vs Marketing (Panda ch-1) Types of Personal Selling (Panda Ch-1) Types of Sales (still; Ch-2)

Organization of Sales Department

(Richard Still;Ch-6-9)

The Effective Sales Executive

Functions of the Sales Executive Qualities of Effective Sales Executives Relations with Managers of Other marketing Activities

Organization of Sales Department

Purpose of Sales Organization Setting up a Sales Organization Basic Types of Sales Organization Basic types of Sales Organization structure Filed Organizations of Sales department Schemes for dividing line authority in the sales organization

Sales Departments Integration with other departments

Sales Management Position in Marketing

Pull Vs Push Strategy Sales Management Customer Relation Direct Marketing

Evolution of Sales Management

Pre Industrial Era
Small Scale Industries dominated the economic Demand exceeds supply

Industrial Era
Industrial Revolution Increased Productivity Supply exceeds demand Increased completion in selling

Emergence of Specialized Sales Departments Marketing Activity Holistic Marketing Approach

Integrated Solution

Evolution of Sales Management

Holistic Marketing Approach
Internal Marketing Integrated Marketing
Product and Services Channels Communication

Holistic marketing

Socially Responsible marketing

Ethics Environment Legal Community

Relationship Marketing

Customers Channel Partners

Meaning And Definition of Sales Management

Sales management means the planning, directing and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal sales-force .
(American Marketing Association)

However Modern Sales Manger has additional responsibility than simply managing sales-force.

Characteristics of Modern Selling

Customer retention and deletion Adding value/satisfying needs Database and knowledge management Customer Relationship Management

Problem Solving and system Selling

Customer

Marketing the Product

Responsibility of Sales Manager

Organizing Sales Effort
Inside ensure effective communication within and other departments Outside- key contact with customers, and other external Public Maintaining effective distribution network.

Participation in Key Marketing Decisions

Budgeting, Products, Marketing Channel, Advertising and other marketing programmes

Handling Distribution Problems

Objective of Sales Management

Sales Volume Contribution to Profit Continuing Growth Supports to Marketing Dictions Charting the course of future operations.

Nature and Importance of Sales Department (Chapter-1- havildar)

Integration with Marketing Management
Promotion Marketing research Marketing Logistics Customer Service Co-Ordination

Relationship selling Varying Sales responsibilities

Role and Functions of Sales Manager/Executive

Organization and Coordination Planning and Coordination Coordination with other elements in the marketing programme Coordination with the distributive Network
Gaining Product distribution Obtaining Dealer identification Reconciling business goals Sharing promotional risks

Coordination and implementation of overall marketing strategy

Sales Vs Marketing
Starting Point Focus Means Ends

Selling Concept

Factory

Factory

Selling and Promoting

Profits Through Sales Volume

Marketing Concept

Market

Customer Needs

Coordinated marketing

Profits Through Customer Satisfaction.

Sales Vs Marketing
# 1 Selling Emphasis on Product Marketing Emphasis on consumer needs and wants Company first determines customers needs and wants and then decides on how to deliver a product to satisfy these wants. Management is profit-oriented Planning is long-term oriented, in terms of new products tomorrow's markets and future growth Stresses need and wants of buyers

Company manufactures the product first and then decides to sell it

Management is sales-volume oriented Planning is short-term in terms of today's product and markets Stress need of a seller

Sales Vs Marketing
# 6 Selling Views business as goods producing process Emphasis on staying with existing technology Marketing Views business as consumer satisfying process Emphasis on innovation in every sphere, on providing better value to the customers by adopting a superior technology All departments of a business operate in an integrated manner, the sole pupose being generation of consumer satisfaction Consumers determine price, price determines cost Marketing view the customers as the very beginning of a business

Different department work as highly separate watertight compartments

9 10

Cost determines price Selling view customers as the last link in business

Types of Personal Selling

Personal Selling can be broadly classified into
Industrial Selling
Selling to Resellers Selling to business users Institutional Selling Selling to Government

Retail Selling
Retailers Dealers Wholesales

Services Selling

Types of Selling
Selling Function Order Takers Order Creators Order Getters

Inside Order takers Delivery Salespeople

Missionary Salespeople

Front Line salespeople

Sales Support Salespeople Technical Support

New Business Salespeople

Merchandisers Outside Order Taker Organizational Salespeople Consumer Salespeople

Organization The Sales Effort

Nature of Sales Management Positions

Position Guide
Sales Manager

Reporting Relationship
The Vice President of Marketing

Job Objective
The primary objective is to secure maximum volume of sales through effective development and execution of sales programmes and sales policies for all products sold by the division

Duties and Responsibilities

Sales Program Organization Sales force Management Internal and External Relations Communication Control

Performance Criteria
Sales exceed the quantities Profit Contribution of the sales department is in line with plan The details of sales plans are in writing and are acceptable to marketing Department Minimizing turnover rate of sales executives

Nature of Sales Management Positions

Position Guide
District Sales Manager

Reporting Relationship
The Sales Manager

Job Objective
The primary objective is to secure maximum volume of sales through effective development and execution of sales programmes at district level in accordance with established sales policies and programmes within the limits of the sales budget.

Duties and Responsibilities

Supervision of Sales personnel Control Administration Communication

Performance Criteria
Sales exceed the quantities Limit the Sales Expenses within the budget Minimizing turnover rate of sales executives

Qualities of Effective Sales Executives

Ability to define the position's exact functions and duties in relation to the goal Ability to select and train capable subordinates and willingness to delegate sufficient authority to enable them to carry out assigned tasks with minimum supervision Ability to utilize time efficiently Ability to allocate sufficient time for thinking and planning Ability to exercise skilled leadership

Sales Executives Relations with Managers of other marketing Activities

Relation with Product Management Relation with Promotion Management Relation with Pricing Management Relation With Distribution Management

The Sales Organization

Purpose of Sales Organizations

1. To Permit the Development of Specialist 2. To assure that all necessary activities are performed 3. To achieve coordination or balance 4. To define authority 5. To economize on executive time

Setting up a sales organizations

Defining the objectives Delineating the necessary activities Grouping activities into jobs or positions Assigning personnel to positions Providing for coordination and control

Basic Types of Sales Organizational Structures

Line Sales Department Organization Line and Staff sales organization Functional Sales Organization Committee Sales Organization

Basic Types of Sales Organizational Structures

Line Sales Department Organization

Basic Types of Sales Organizational Structures

Line and Staff sales organization

Basic Types of Sales Organizational Structures

Functional Sales Organizations

Basic Types of Sales Organizational Structures

Committee Sales Organization
Sales Training Committee
General Sales Manager, Sales Training Manager, Representative, Divisional, or Regional Sales managers Draft training plans and formulate sales training policies

Customer Relation Operation Personnel Merchandising New Products

Schemes for Dividing Line Authority o in the Sales Organizations

Geographic Division of the Line Authority

Schemes for Dividing Line Authority o in the Sales Organizations

Product Division of Line Authority

Schemes for Dividing Line Authority o in the Sales Organizations

Customer Division of Line Authority
General Sales Manager

Manager Lumber Industry

Manager Construction Industry

Manager Mainlining Industry

Branch Sales Manager

Branch Sales Manager

Branch Sales Manager

Sales Personnel

Sales Personnel

Sales Personnel

Schemes for Dividing Line Authority o in the Sales Organizations

Marketing Channel Division of Line Authority
General Sales Manager

Manager Chain Store

Manager Wholesale Sales

Manager Export Sales

Sales Personnel

Sales Personnel

Sales Personnel

Sales Department Relations

Company Success is Affected by

Not Just with
Good Product at competitive prices

Company Success is Affected by

Dealings and associations of the Sales department with customers and other publics Relations of sales department with other departments Influences the company s reputations with many publics. Public relations is additional responsibility of sales excecutive.

Interdepartmental relations and Coordinations Formal Coordinating Methods

It can be achieved one or more of three methods
Grouping allied activities under a high-ranking activities
Chief Marketing executives have reporting directly to them the heads of department performing marketing activities

Achieve coordination through the general administrative officers

President, executive Vice President, or GM

Coordinating Committees made up of representatives of concerned departments

Informal Coordinating Methods

Sales Department Relations

Coordination of Personal Selling with Other Marketing Activities Sales and Advertising Sales and Marketing Information Sales and Services Sales and Physical Distribution Coordination's of personal selling with other departments Sales and Production Sales and Research and Development Sales and Personnel Educational Relations Sales and Finance Press Relations Sales and Accounting Sales and Purchasing Sales and Public Relations Sales and Legal Sales department external relations Final Buyer Relations Industry Relations Government Relations

Coordination Of Personal Selling With Other Marketing Activities

Sales and Advertising
Personal Selling Increases adverting impact Sales Department assist the Advertising department in Selecting themes and media, in preparing schedules, and in securing dealers support for cooperative advertising programs Advertising Department helps sales department in furnishing sales aids for the sales force Advertising conserves the sales force s time Advertising geared to help sales people where and when they need it most

Coordination Of Personal Selling With Other Marketing Activities

Sales and Marketing Information
Marketing Information systems assist the sales department by
Gathering data Analyzing sales problems Assisting in determining sales potentials and setting quotas Measuring the effectiveness of the sales effort

The sales department provides the information system

Raw statistics and other information's needed for sales market analysis forecasting

Sales and Services Sales and Physical Distribution

Coordination Of Personal Selling With Other Marketing Activities Sales and Services Sales and Physical Distribution