sales and distribution (2)
TRANSCRIPT
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Sales managers are incharge of personal selling
Sales managers are incharge of personal selling
activity and their primary assignment is
activity and their primary assignment is
management of personal sales force.
management of personal sales force.
They are responsible for organizing the sales
They are responsible for organizing the saleseffort both within and outside their companies
effort both within and outside their companies
Within the company they build formal and
Within the company they build formal and
informal organizational structures ensuring
informal organizational structures ensuringeffective communications not only is sales
effective communications not only is sales
department but in its relation with other
department but in its relation with other
organizational
organizational Units
Units
Outside the company, they serve as a key
Outside the company, they serve as a keycontact with customers and other external
contact with customers and other external
publics and are responsible for building &
publics and are responsible for building &
maintaining an effective distribution network
maintaining an effective distribution network
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They are also responsible for participating in the
They are also responsible for participating in the
preparation of information critical to key
preparation of information critical to key
marketing decisions such as on Budgeting,Quotas
marketing decisions such as on Budgeting,Quotas
and Territories
and Territories
They participate , upto an extent , in decisions
They participate , upto an extent , in decisions
on products, marketing Channels and distribution
on products, marketing Channels and distributionpolicies , advertising and other promotion and
policies , advertising and other promotion and
pricing.
pricing.
Thus they are both an administrator in charge of
Thus they are both an administrator in charge ofpersonal selling activity and a member of
personal selling activity and a member of
executive group that makes marketing decisions
executive group that makes marketing decisions
of all types
of all types
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Thus we can say that Sales Management is a key
Thus we can say that Sales Management is a key
function in many kinds of enterprises..
function in many kinds of enterprises..
Objectives of Sales Management:
Objectives of Sales Management:
There are three general Objectives such as
There are three general Objectives such as
Sales Volume
Sales Volume
Contribution to profits
Contribution to profits
Continuous Growth
Continuous Growth
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Sales Executives make a substantial
Sales Executives make a substantial
contribution to reach these Objectives but
contribution to reach these Objectives but
ultimately it is the responsibility of the Top
ultimately it is the responsibility of the TopManagement
Management
Top Management delegates to Marketing
Top Management delegates to Marketing
management which then delagates to Sales
management which then delagates to Sales
Management ,sufficient authority to achieve
Management ,sufficient authority to achieve
these three general objectives
these three general objectives
In the process ,Objectives are translated to more
In the process ,Objectives are translated to more
specific goals that the company has reasonable
specific goals that the company has reasonable
chances of reaching
chances of reaching
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During the planning which precedes goalDuring the planning which precedes goal
setting,sales executive provides estimates onsetting,sales executive provides estimates on
market and Sales potential,the capabilities ofmarket and Sales potential,the capabilities of
sales force etc.sales force etc.
After finalizing the goals ,it is upto salesAfter finalizing the goals ,it is upto sales
executive to guide and lead sales personnel andexecutive to guide and lead sales personnel andmiddlemen who play critical roles inmiddlemen who play critical roles in
implementing the sales plansimplementing the sales plans
Sales Management is influential in chartingSales Management is influential in charting
course of future operationscourse of future operations
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It provides higher management withIt provides higher management with
informed estimates and facts for makinginformed estimates and facts for making
marketing decisions and for setting salesmarketing decisions and for setting sales
and profit goals.and profit goals.
The sales management appraisal ofThe sales management appraisal of
market opportunities leads to setting ofmarket opportunities leads to setting of
targets for sales Volume,gross Margintargets for sales Volume,gross Margin
and net profit in units of products and inand net profit in units of products and in
currency termscurrency terms
This along with benchmarks of growthThis along with benchmarks of growth
projected for sales and profits at specificprojected for sales and profits at specific
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Relationship Selling: The Buyers and theRelationship Selling: The Buyers and the
sellers who do business together have somesellers who do business together have some
type of business or working relationshipstype of business or working relationships
Their relationship have a range or spectrumTheir relationship have a range or spectrumgiven below as :given below as :
Transactional Relationship SellingTransactional Relationship Selling
Value added Relationship SellingValue added Relationship Selling
Collaborative or Partnering RelationshipCollaborative or Partnering Relationship
SellingSelling
Every relationship is an exchange of desiredEvery relationship is an exchange of desired
product/service in return to the moneyproduct/service in return to the money
The attitude and culture of an organizationThe attitude and culture of an organization
are reflected in the attitude and behaviour ofare reflected in the attitude and behaviour of
individual buyers and Sales personsindividual buyers and Sales persons
Relationship selling is done to createRelationship selling is done to create
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IIt means important customers needt means important customers need
continuous attention through partnering orcontinuous attention through partnering or
collaborative relationships.collaborative relationships.
Relationship selling is the tactical or actionRelationship selling is the tactical or actionoriented arm of relationship marketing.oriented arm of relationship marketing.
Companys best sales people are assigned toCompanys best sales people are assigned to
sell and service A class or major customers.sell and service A class or major customers. Both selling and Buying organizations workBoth selling and Buying organizations work
collaboratively to lower cost or increase valuecollaboratively to lower cost or increase value
The focus is on single Transaction in case ofThe focus is on single Transaction in case of
businesses having Low priced or low profitbusinesses having Low priced or low profit
products or services like seeing a movie in aproducts or services like seeing a movie in a
theatre or eating out in a Restauranttheatre or eating out in a Restaurant
This is known as Transaction oriented sellingThis is known as Transaction oriented selling
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IIn case of Value added exchange,the focus isn case of Value added exchange,the focus is
on the sales person understanding the curenton the sales person understanding the curent
and future needs of the customersand future needs of the customers After the purchase is made, the sales personAfter the purchase is made, the sales person
contacts the customer to find out if thecontacts the customer to find out if the
customer is satisfied and has any futurecustomer is satisfied and has any future
needsneeds
Such customer has medium Sales and profitSuch customer has medium Sales and profit
potentialpotential
For example Maruti Udyog sales& ServiceFor example Maruti Udyog sales& Servicecenter contacts the customer after a sale iscenter contacts the customer after a sale is
made.made.