Sales and
Marketing
Management
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Is marketing & selling synonymous?
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Is marketing & selling synonymous?
The task of a sales manager is to increase sales, the task that
confronts a marketing manager is to increase
profits.
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Difference between Selling & Marketing
SELLING MARKETING
Emphasis on product Emphasis on consumer needs and wants
Company manufactures the product first and then decides to sell it
Company first determines customer needs and wants and then decides how to deliver a product to satisfy these wants
Management is sales volume oriented
Management is profit oriented
Planning is short-term oriented in terms of today’s products and markets
Planning is long-term oriented in terms of new products, tomorrow’s products and future products
Stresses needs of a seller Stresses needs and wants of a buyer
Views business as a goods producing process
Views business as a consumer satisfying process
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SELLING MARKETING
Emphasis on staying with existing technology and reducing cost
Emphasis on innovation in every sphere, on providing better value to customers by adopting a superior technology
Different departments work as highly separate watertight compartments
All departments of a business operate in an integrated manner, the sole purpose being generation of consumer satisfaction
Cost determines price Consumers determine price, price determines cost
Selling views customers as the last link in business
Marketing views the customers as the very beginning of a business
Difference between Selling & MarketingCon..
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Starting
PointMarketFactory
The Selling Concept
The Marketing Concept
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Starting Point
MarketFactory
Focus Customer needs
Factory
The Selling Concept
The Marketing Concept
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Starting Point
MarketFactory
Focus Customer needs
Factory
Means Coordinated marketing
Selling &
promoting
The Selling Concept
The Marketing Concept
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Starting Point
MarketFactory
Focus Customer needs
Factory
Means Coordinated marketing
Selling & promoting
EndsProfits
through customer
satisfaction
Profits through
sales volume
The Selling Concept
The Marketing Concept
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When We Are Marketing, We Are:
1. Deciding what products we are going to sell2. Determining the prices at which we are going
to sell3. Deciding whom we are going to sell4. Estimating the likely result of the profit
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Marketing and sales are inseparable functions. Both are complementary to each other. Sales function cannot exist in a vacuum. It acts as a feedback for marketing personnel. The actual test of a product in terms of quality, attributes, expectation, price worthiness ….
When We Are Marketing, We Are:Con…
1. Deciding what products we are going to sell2. Determining the prices at which we are going
to sell3. Deciding whom we are going to sell4. Estimating the likely result of the profit
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D
1
Quantity’000
Price (Rs)
D
432
If demand determines the upper threshold for price, then costs determine the
lower one
The Demand Curve
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Profits
Loss
Sales Revenue
Fixed Costs (a)
Variable Costs (b)
Total Costs (a+b )
Break-even Point
Output
Sales Revenue
CostSales managers must understand different
costing concepts
A Simple Break-even Chart
Women’s PERFUME – THE AMOUNT OF IMPORTANCE (NOT Rs.)
Product: 15%
Price: 15%
Place: 25%
Promotion: 40%
Service: 5%
Area where substantial
improvements and cost savings can be
made
Objective 2 Objective 3
Hierarchy Of The Marketing Plan
Objective 1
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Objective 2 Objective 3
Hierarchy Of The Marketing Plan
Objective 1
Strategy A Strategy B Strategy C
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Tactic A1
Objective 2 Objective 3
Tactic A2 Tactic A3
Hierarchy Of The Marketing Plan
Objective 1
Strategy A Strategy B Strategy C
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• Objectives: Where we intend to go? (specific & quantitative benchmark)
• Strategies: How do we intend to go? (Broadly descriptive)
• Tactics: The precise route to be taken (detailed)
Hierarchy Of The Marketing Plan
Tactic A1
Objective 2 Objective 3
Tactic A2 Tactic A3
Objective 1
Strategy A Strategy B Strategy C
1
Philosophy
1. Company Objective
2. Business
Goals
1. Corporate Mission
Marketing Strategy System
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1
Philosophy
1. Company Objective
2. Business Goals
1. Corporate
Mission1.
Opportunity
2. Threat
3. Strength
4. Weakness
Business opportunit
yOpportunity/ problem
2
Marketing Strategy SystemCon..
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1
Philosophy
1. Company Objective
2. Business Goals
1. Corporate
Mission1.
Opportunity
2. Threat
3. Strength
4. Weakness
Business opportunit
yOpportunity/ problem
2 3
Target marketMarket
segmentation
1. Where (Target Area)
2. Who (Target
Customer)
3. What Needs (Target Needs)
Marketing Strategy SystemCon..
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1
Philosophy
1. Company Objective
2. Business Goals
1. Corporate
Mission1.
Opportunity
2. Threat
3. Strength
4. Weakness
Business opportunit
yOpportunity/ problem
2 3
Target marketMarket
segmentation
1. Where (Target Area)
2. Who (Target
Customer)
3. What Needs (Target Needs)
4
Marketing Target Sales Target
1. What (Product)
2. How Much (Qty./
Amt.)
3. Until When (Time
Limit)
Marketing Strategy SystemCon..
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1
Philosophy
1. Company Objective
2. Business Goals
1. Corporate
Mission1.
Opportunity
2. Threat
3. Strength
4. Weakness
Business opportunit
yOpportunity/ problem
2 3
Target marketMarket
segmentation
1. Where (Target Area)
2. Who (Target
Customer)
3. What Needs (Target Needs)
4
Marketing Target Sales Target
1. What (Product)
2. How Much (Qty./
Amt.)
3. Until When (Time
Limit)
5
Marketing Mix
differentiation
strategy
1. Product Service
2. Price
3. Channel
3. Promotion by•Salesman•Sales Promotion•Advertisement•Publicity
Marketing Strategy SystemCon..
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1
Philosophy
1. Company Objective
2. Business Goals
1. Corporate
Mission1.
Opportunity
2. Threat
3. Strength
4. Weakness
Business opportunit
yOpportunity/ problem
2 3
Target marketMarket
segmentation
1. Where (Target Area)
2. Who (Target
Customer)
3. What Needs (Target Needs)
4
Marketing Target Sales Target
1. What (Product)
2. How Much (Qty./
Amt.)
3. Until When (Time
Limit)
5
Marketing Mix
differentiation
strategy
1. Product Service
2. Price
3. Channel
6
Action Program practical measures to achieve
target
1. Means
2. Ways
3. Budget3. Promotion by•Salesman•Sales Promotion•Advertisement•Publicity
4. Share of Role
5. Action Schedule
Marketing Strategy SystemCon..
Strategic Marketing Objective
Sales Objective Sales Strategy
Build 1. Build sales volume2. Increase distribution3. Provide high service
levels
1. High call rates on existing accounts
2. High focus during calls3. Call on new accounts
(prospecting)
Hold 1. Maintain sales volume
2. Maintain distribution3. Maintain service
levels
1. Continue current call rates on current accounts
2. Medium focus during calls3. Call on new outlets when they
appear
Harvest 1. Reduce selling costsTarget profitable accounts
2. Reduce service costs and inventories
1. Call only of profitable accounts2. Consider telemarketing or
dropping the rest3. No prospecting
Divest 1. Clear inventory quickly
1. Quantity discount to targeted accounts
Marketing Strategy & Sales Management
The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s approach includes:• Maintaining good customer relations• Managing profitability of a firm• Managing customer complaints• Building brand value in the eyes of the
customer
The Nature And Role Of Sales Management
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The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s approach includes:• Maintaining good customer relations• Managing profitability of a firm• Managing customer complaints• Building brand value in the eyes of the customer
Best marketing programs can fail if sales staff is ineffective or improperly managed.For customers sales staff represents the face of the company and impressions determine future business relations.
The Nature And Role Of Sales Management
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The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s approach includes:• Maintaining good customer relations• Managing profitability of a firm• Managing customer complaints• Building brand value in the eyes of the customer
Best marketing programs can fail if sales staff is ineffective or improperly managed.For customers sales staff represents the face of the company and impressions determine future business relations.
Functions of a sales manager are classified into:1. Personnel selling – Individual or team to establish
and build a profitable relationship over time through multiple transactions
2. Sales management – Planning, organizing, directing and controlling all sales activities
The Nature And Role Of Sales Management
Referred to as:• Directional• Managerial• Functional structure• Lines of authority & responsibility
Organization For MarketingCon..
Referred to as:• Directional• Managerial• Functional structure• Lines of authority & responsibility
Factors for consideration are:1. Will the need for a decision be recognized and given
adequate consideration by the appropriate members of the organization?
2. Will there be sufficient time for the decision making process?
3. Whether the necessary data on existing and alternative courses of actions are available and utilized?
4. Will the skills, knowledge and potential of the organizational members be used to maximize their contribution to the decision making process?
Organization For Marketing
Production
Managing Director
Sales Marketing Finance H.R Managem
ent
Sales Oriented Company
Organisational Implications Of Adopting The Sales Concept
Production
Managing Director
Sales Marketing Finance H.R Managem
entField Sales Force
Sales Office Administratio
n
Advertising
Market Research
Publicity
Sales Oriented Company
Organisational Implications Of Adopting The Sales Concept
Production Marketing Finance H.R Managem
ent
Market-oriented Company
Organisational Implications Of Adopting The Marketing
ConceptManaging Director
Production
Sales
Marketing Finance H.R Managem
ent
Field Sales Force
Sales Office Administratio
n
Advertising
Market Research
PublicityMarket-oriented
Company
Publicity
Organisational Implications Of Adopting The Marketing
ConceptManaging Director
Sales promotion
National Sales Manager
Example Of A Sales Organization Structure
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National Sales Manager
Regional Sales Managers
Example Of A Sales Organization Structure
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National Sales Manager
Regional Sales Managers
District Sales Manager
Example Of A Sales Organization Structure
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• Determining sales force objectives and goals• Finalizing sales force organization, size, territory,
and quota• Forecasting and budgeting sales• Selecting, recruiting, and training of the sales force• Motivating and leading the sales force• Designing compensation plan and control systems• Designing career growth plans and building
relationship strategies with key customers
Duties And Responsibilities ofA Sales Manager
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Describing The Personnel Selling Function
Sales Management Model
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Describing The Personnel Selling Function
Defining The Strategic Role In Personal Selling
Sales Management Model
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Describing The Personnel Selling Function
Defining The Strategic Role In Personal Selling
Designing The Sales Organisation
Sales Management Model
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Describing The Personnel Selling Function
Defining The Strategic Role In Personal Selling
Designing The Sales Organisation
Developing The Sales Force
Sales Management Model
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Describing The Personnel Selling Function
Defining The Strategic Role In Personal Selling
Designing The Sales Organisation
Developing The Sales Force
Directing The Sales Force
Sales Management Model
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Describing The Personnel Selling Function
Defining The Strategic Role In Personal Selling
Designing The Sales Organisation
Developing The Sales Force
Directing The Sales Force
Determining Sales Force Effectiveness & Performance
Sales Management Model
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Managing Director
Marketing Organisation Structure
ProductionDirector
FinancialDirector
MarketingDirector
Human ResourceDirector
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Managing Director
Marketing Organisation Structure
ProductionDirector
FinancialDirector
MarketingDirector
Human ResourceDirector
General Sales Manager
Marketing Manager
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Managing Director
Marketing Organisation Structure
ProductionDirector
FinancialDirector
MarketingDirector
Human ResourceDirector
•Field Sales Force•Customer Service•Product Service
General Sales Manager
Marketing Manager
•Market Research•Product Planning•Sales forecasting•Production Scheduling•Sales Budgeting•Pricing•Advertising•Stock Control•Credit Control
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•Engineering•Production R & D•Design•Market Research•Finance•Purchasing•Credit Control •Advertising•Sales Promotion•Physical Distribution•Sales•Customer Servicing•Product Servicing•Dealer Training•Etc. Etc
Marketing
Organisation Structures
Customer Oriented Managing Director
An Organization Structure Of A 2-wheeler Company
GM Marketing
GM Sales
GMService
GMCommercia
l
GM(Spare
s)
Director Marketing
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Advertising
Retailing
Network Developme
ntSales Mgmt.
Statistics
Credit Control
Pricing
Market Research
Goods Movement
Branches (12)
Rural Marketing
An Organization Structure Of A 2-wheeler Company
GM Marketing
GM Sales
GMService
GMCommercia
l
GM(Spare
s)
Director Marketing
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Advertising
Retailing
Network Developme
ntSales Mgmt.
Statistics
Credit Control
Pricing
Market Research
Goods Movement
Branches (12)
Branch Manager
Rural Marketing
Area Mgr.
Comm. Asst.Service Engg.Depot
InchargeSpare Part
I/C
An Organization Structure Of A 2-wheeler Company
GM Marketing
GM Sales
GMService
GMCommercia
l
GM(Spare
s)
Director Marketing
• Creating a dealer network• Preparation of annual Dealer Network
Development (DNM) plan• Appointment of dealer network• Categorization of the dealers• Initial support to new dealers• Dealer productivity norms• Termination of dealers
Distribution – Its Role & Importance
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Sales and Distribution Management – Tapan Panda, & Sunil Sahdev (Oxford), TPSS – Text book
Sales & Distribution Management –Dr Matin Khan, Excel Books(Rs.200/-)
Marketing Channels – Coughlan, Anderson, Stern, El-Ansary 7th. Edition, Pearson
Marketing Channels ( A Management View) - Bert Rosenbloom, The Drydon Press
ABC's of Selling - Charles Futrell Sales Management: Decisions Strategies and Cases - Still,
Richard R Gupta, S.L. Sales and Distribution Management Rampal, M.K., Gupta, S.L. Cases and Simulations in
Marketing Management
Books And References
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