sales management 1 final

7/31/2019 Sales Management 1 Final

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Reference book

Sales Management

by

Edward W Cundiff,

Richard R Still,

Norman A.P Govoni


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Sales Management as a career

Advantages

Fast growth opportunities

Measurable performance

Opportunity to Build wide network/ relationshipHelps Build emotional intelligence

Opportunity to gain Industry knowledge

Inter Personal Skills

Can be the of the companyMore scope to enrich in all job functions

Generally turn to be good in HR

Personality becomes aggressive


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Sales Management as a career

Perils

Non performance easily identified

Some tend to remain just good salesmen

First to take the brunt of Non Performance


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The Modern Sales Personnel

Is good at:

Planning

Building and Maintaining effective OrganizationControl and Monitoring

Implementation

Achieving end Result


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Responsibilities in Sales Management

Achieve Targeted Sales

Contribute to Profit

Maintain Growth


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Evolution of Sales function (Pre-Industrial Era)

Demand > Supply

Buyer Seek Sellers

Manufacturing had Higher

Importance

No Mass Production


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Evolution of Sales function (Post-Industrial Era)

Mass Production Commenced

New Markets to be found

Specialized Departments for

Personal Selling

Competition Forced it

further


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How marketing Function got Split?

MARKETING

Sales

Advertising

Market

Research

Sales

Promotion

Credit/

Collection

Export

Traffic /

Shipping

Merchandis

sing


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Activities in Sales ManagementPlanning

Control of Personal SellingRecruitment

Training

Equipping

AssigningMotivating

Routing

Supervising

The Above activities are related to Personal Sales Force

Sales and Marketing Dept work together

Sales is both and Operational and Executive function


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Sales Management and Financial Results

Sales - Cost of Sales =GROSS PROFIT

Gross Margin - Expenses = NET PROFIT

Hence Sales has a Direct Influence on the Profitability

Any impact on Sales speaks on the Profit Directly


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Sales, Expenses and Profit relationship

Situation

Growth in Sales with Higher Growth Expenses

SolutionMaintain Sales growth but shrink Expenses

No result- shrink both Sales and Expenses

Catch

At times Sales Organization get blind to expenses insight of Sales Volume


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Sales Manager as aCo-ordinator


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Organizing & Co-ordination function

What do they co-ordinate ?Co-ordinate different order getting methods

Cross objectives of different channels

Co ordinate with other Marketing activities

Co ordinate personal Selling with Advertising and

Sales Promotion

Sales to capitalize on Advertising

How do they co ordinate ? Co ordination by participate methodAdvertising and Sales promotion an arial support.

What done best by Personal Selling and Advertising is

decided


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Co ordination with Distribution Network(In case of dealer network Management)

Create middlemen (dealers)

Persuade them to stock

Create market pull for them to stock

Co ordinate between company and dealer forPromotional work

Establish dealer identity among end users

Protect the interest of the company and the dealer

Share promotional Cost and Risk with dealer

Ajay & Co. Rahul & Co Sanjay & Co. Vijay & Co.


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Sales Management

&

control


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Analysis of the Situation

?What is the present performance level?How did we achieve the present level?Where are the trends for future?

How do we get to the target?


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Control measures should work at clockwise precision


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Setting Performance Standards

Fix upper and Lower limits of performance

Analyze factors like

Area

Market PotentialSalesmen skills

Assignment base

Past performance

Future objective

Cost of Sales

while fixing range of performance


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Gathering information on

Actual PerformanceIdentify the relevant information needed

Avoid duplication

Establish periodicity and time schedule for informationgathering

System for action plan based on information.


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Evaluating Performance

Compare results with Target / Standard

Question analyze more than standard variation

Consider influences out of control


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Action to correct Controllable Variations

Provide Directions on more effective wayGuide/ Train

Install Procedures & Practices to control


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Adjust the Un-controllable factors

Rework on Standard if un-realistic

Re look at the policies and procedures

Identify lacunae in Planning


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Sales Control Styles


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Yes, expectations are high


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Informal Control

More effective in smaller organizations

Should have a feel for the pulse of business

Able to quickly put you finger on the problem

Be close touch with market


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This is what you think of a company with no follow up


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Formal control

For larger organizationsHave written practices and sales policies

Build authority for changing

With exceptions makes changes


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Policy formation and review-

Informal control

Study all influencing factors prior to policy formation

Consider Intangible factors as well

Review periodicallyAmend based on:

Market response

Uncontrollable environment changes.

Acquire more information

In case of new product changes are more likely to

happen due to unknown factors


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Formal control on sales volume

Fix sales volume target based on market forecast

Monitor periodically

Review based on:

Industry sales trends

Activities of Competitors

Market share percentages

Govt Policies


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dont ou need for control and s stems


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Budgetary Control

Control of Sales, Expenses, Margins and hence profitIndividual profit and loss statement can be made for

Territories

Products

Marketing Channels

Class of Customers

Install review system and control Sales , Expenses

Take timely corrective action

Take decision of elimination with over all Marketing

objective in mind


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Pre requisite for success of Sales

Management Control

A de-centralized decision making

Senior Management pitches in when situation not

manageable

Time is the factor

Train and empower hierarchy down the line for

decision making


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sales management 1 final

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