adbms sales management.ppt

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Sales Management

Initially sales management was equatedwith sales force management. As timewent on the concept of salesmanagement became broader.

According to AMA “The planningdirection and control of personal sellingincluding recruiting, selecting equipping,assigning, supervising paying andmotivating of the sales force

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defined as the management of a firm’spersonal selling function whiledistribution is the management of theindirect selling effort i.e.selling throughextra corporate organizations whichform the distribution network of thefirm. The sales management task thusincludes analysis, planning, organizing,directing and controlling of the

’

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It is the sale and delivery of goods/services from the manufacturer to the consumer can be consummateddirectly i.e. by the firm itself through itsown sales force or indirectly through a

network of middleman such aswholesalers and retailers.

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Contact- finding and communicating with prospectivebuyer

Prospecting- Bringing together the marketers offeringand the prospective buyer

Negotiation - Reaching an agreement on price andother terms of the offer so that ownership and possessioncan be transferred.

Promotion - Of the marketers offerings, and his

satisfaction generating potentialPhysical distribution - Actual transfer of possession

Collection- Of relevant consumers information andrevenue in exchange of goods or services

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Objectives of SalesManagement

Corporate Objectives

Profitability SalesVolume

Growth

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Describing thePersonal Selling

Function

Defining the

StrategicRole of theSales

Function

Developingthe SalesForce

Directingthe SalesForce

Determining

Sales ForceEffectivenessand

Performance

Sales Management Model

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Transactions Relationships

Local Global

Management Leadership

Individuals Teams

Sales Volume Sales Productivity

Sales Management Trends

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All organizations use their own salesforce or distribution network to reachout to their customers. Activities of the sales organization would have tobe coordinated with channel

operations if sales goals have to beeffectively realized.

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Promotion and the AIDA Model

Exhibit 14-4

Promotion Objectives Adoption Process AIDA Model

Informing

Persuading

Reminding

AttentionInterest

Desire

Action

AwarenessInterestEvaluationTrialDecision

Confirmation

}

}

{

14-9

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The advocates of this theory define that allthe circumstances, which led to the saleswere appropriate for the sales to have taken

place. In other words, if the sales person issuccessful in securing the prospect’sattention, maintaining his interest and

inducing his desire to buy the product,t he sales will result. Moreover, if the salesperson is highly skilled, he will take control of

the presentation, which would lead to sales.

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This theory emphasizes on the needs or problems of the buyer.The sales personassist the buyer in finding an

appropriate solution to the problem.Thissolution may be in terms of a product or service. This theory is based on the

analysis of the sequence of events thatgoes in the buyer’s mind during thesales presentation.

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Deciding upon typeand quality of salespersonnel required

Determination of thesize of the sales forceOrganization of thesales departmentTerritory designRecruitment & trainingproceduresTask allocation

CompensationPerformanceappraisal

FeedbackmechanismManaging channel

relationshipCoordination withMarketing

department

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Step1- Assessment of the competitivesituation and the corporate goals todetermine the output that salesmanagement is expected to give.

Step2- Define sales management

objectives in terms of deliveringthese outputs both quantitative andqualitative.

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Step3- Design sales strategy bydeciding upon: type of sales effortrequired, type of sales personnelrequired, size of the sales force,territory design, channel support &

coordination

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Examples ofl Selling

Telemarketing

Inside selling

Retail selling

Field selling

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Characteristics of Personal Selling

Flexibility Adapt to situationsEngage in dialog

Builds Relationships

Long term Assure buyers receiveappropriate services

Can not reach mass

audienceExpensive percontact

Numerous callsneeded to generatesale

Labor intensive

ConPro

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ORDERGETTERS

Currentcustomers

Newcustomers

ORDERTAKERS

Inside Order Takers(via mail, telephone,

internet)

Outside Field Sales

SUPPORTPERSONNEL

MissionarySalespersons

TradeSalespersons

Technical

Salespersons

Types of Salespersons

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16-18

• Salespeople have many names• Agents• Sales consultants• Sales Representatives• Account

Executives• Sales Engineers• District Managers• Marketing representatives

• Account Development

• Sales people have many names

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PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

APPROACHING THE PROSPECT

FOLLOWING UP

CLOSING THE SALE

HANDLING OBJECTIONS

MAKING THE SALES PRESENTATION

Pre approach: QUALIFYING PROSPECTS

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Roles of Selling

a. Identifying decision makers,decision processes, and

qualified buyersb. Promoting to corporate,travel trade, and other

groupsc. Generating increased sales

at the point of purchase

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• Providing detailed and up-to-date information to the traveltrade

• Maintaining a personalrelationship with key clients• Gathering information on

competitors’ promotions

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Functions of Sales Management

a. Sales-force staffing

and operationsb. Sales planningc.

Sales performanceevaluation

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Contents of the Sales Plan

a. Sales activitiesb. Sales objectivesc. Sales budget

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Roles of the Sales Plan

a. Preparing sales

forecastsb. Developing sales

department budgetsc. Assigning sales

territories and

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FIGURE 17-A How salespeople create value for customers

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FIGURE 17-3 The sales management process

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THE SALES MANAGEMENTPROCESS (cont.)

Input = activities and efforts

Sales Force Evaluation

Output = results

Sales Plan Implementation

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THE SALES MANAGEMENTPROCESS (cont.)

Sales ForceComputerization

Sales Force Automation and CustomerRelationship Management

Sales ForceCommunication

Sales Force Automation

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“Sales force automation (SFA)

is the use of technology tomake the sales function more

effective and efficient.”

Sales Force Automation

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Sales Organisation The sales organisation divides an

enterprise in the demand of the sales.

The sales organisation is responsiblefor the sales of materials and services.

The sales organisation is divided indistribution channels and divisions.

Each sales organisation has its ownentry range.

One sales organisation can be

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Sales Organisation: Purpose

To delegate authority andassign responsibility

Achieving coordination andbalance

Authority from top dpwn to fieldlevel sales men

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Setting up a sales organisation

Define the objectiveGroup the activities into jobsRecruit staff Provide for coordination andcontrol

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Types of Sales Organisations

Line FunctionPresident

Vise PresidentMarketing Manager Marketing Manager South West

SE MESales Officer

MR

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Tyes of Sales OrganisationLine and Staff

Marketing Manager

TrainingMana der t

ProductioManager

salesManag

Regional Sales Manager

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Funtional Sales Organisation

M- Sales M-Training M-Territoty M-SP M -DIS

SR SR SR SR SR

General Manager Sales

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How to Organise Field Force

Geographical OrganisatioProduct OrganisationCustomer Organisation

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Manpower Planning

Size of The Sales Force----

-----Work Load Method

Sales Potencial MethodIncremental Method

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Manpower Planning- PeesommelManagement

Job Job Job JobAnalysis Description Specification Evaluation

RecruitmentSeletionTraining

Performance AppraisalCompanc\sation

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Recruitment of Sales PersoneelSourcesWord of MouthSales Rep of Competing Companies

Sales Rep of non Competing CompaniesInternal TransfersCampus RecruitmentsPlacement Firms

Advertisements

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Selecting Sales Personeels

Reception of Applicant Application Blank

InterviewInspection of Past career Primary SelectionFinal SelectionMedical Check

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Sales Training

Training Programmes involves Aim

Identification of Training NeedsContentMethodsExecutionEvaluation

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Training Methods

On The Job TrainingOff the job trainingConference methodCase Study

Role Play

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Executive training andDevelopment

thee attempt to improve management

efficiency through a planned and delibratelearning process which seeks to developin managers cirtain attribute, skills and

knoeledge.

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Training Execution andEvaluation

The training PhilosophyTraining Organisation

Site of the training methodPadagogy

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Motivation and Morale of salespeople

What is motivationMotives of wants and goods

Theories of motivationMotivation towards goal directedbehaviour

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Compensation

Charectoristics of good compensationFairwage

Integrated to the motivational progrrameEqual pay for equal workEasy to understandEasy to administer

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Job evaluation andcompensation plan

Techniques of jobevaluationSimple ranking

Job gradingPoint system

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Controlling sales people:evaluationand supervision

Setting StandardsMeasuring actual performances

Objective of monitoringSales reportComparison of standards set and actualperformances

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Sales Territories

Territory may representGeographical area

Group of customers A market An industry

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Goals of territory management

To cover the market properlyTo deploy sales people effectively

To service the customer effectivelyTo evaluate the sales representativeTo control sales expenses

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Territory Management

GeneratingNew Accounts

ManagingExistingAccounts

PersonalTime

Management

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• An organised way of continually gathering and analysinginformation from every source relevant to the organisation

• MIS consist of people, equipment, and procedures to gather,

sort, analyse, evaluate and distribute needed information to themarketing decision makers• A MIS incorporates & combine the main aspects of marketing

research into a centralised management function which willmaintain a tight control on research procedures & ensure an

accurate data bank of information about customers, productsetc.• A MIS which can link external data with internal sources, such

as sales record, customer records & competitor information willprovide a strong basis for informed marketing decisions

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• MIS - mainly concerned with how tomanage information

• Ongoing information eg sales record• Monitored information - about the

economy• Requested information - Surveys

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• Developing Information-Involves obtaining the needed information for managers from different sources

• Internal data is secondary research already availablewithin the organisation. This can come from-Accounting-Sales force

-Marketing-Manufacturing