sales management unit 1 part 1

8/3/2019 Sales Management Unit 1 Part 1

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Sales Management

Unit-1



In the Unit-1

Sales Management Introduction

Evolution of Sales Management (Still;Ch-1)

Nature and Importance of SalesManagement (Havildar; Ch-1)

Meaning and Def inition of SalesManagement (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 SalesManager/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 Eff ective Sales Executive ± Functions of the Sales Executive

± Qualities of Eff ective Sales Executives

±Relations with Managers of Othermarketing 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 inthe sales organization

Sales Departments Integration withother 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

Holistic

marketing

Socially

Responsible

marketing

Integrated

Marketing

Internal

Marketing

Relationship

Marketing

Ethics

Environment

Legal

Community

Customers

Channel

Partners

Product and Services

Channels

Communication



Meaning And Def inition 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 additionalresponsibility than simply managing sales-force.



Characteristics of Modern Selling

CustomerProblem

Solving andsystem Selling

Addingvalue/satisf ying

needs

Customerretention and

deletion

Database andknowledge

management

CustomerRelationship

Management

Marketing theProduct



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, Advertisingand other marketing programmes

Handling Distribution Problems



Objective of Sales Management

Sales Volume

Contribution to Prof it

Continuing Growth

Supports to Marketing Dictions

Charting the course of f uture 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 marketingprogramme

Coordination with the distributive Network ± Gaining Product distribution

± Obtaining Dealer identif ication

± Reconciling business goals

± Sharing promotional risks Coordination and implementation of overall marketing

strategy



Sales Vs Marketing

Starting Point Focus Means Ends

Selling Co

ncept Facto

ry Facto

ry

Selling and

Promoting

Prof its Through

Sales Volume

Marketing

ConceptMarket Customer Needs

Coordinated

marketing

Prof its Through

Customer

Satisf action.



Sales Vs Marketing

# Selling Marketing

1 Emphasis on ProductEmphasis on consumer needs and

wants

2Company manuf actures the product

f irst and then decides to sell it

Company f irst determines

customers needs and wants and

then decides on how to deliver a

product to satisf y these wants.

3Management is sales-volume

orientedManagement is prof it-oriented

4Planning is short-term in terms of

today's product and markets

Planning is long-term oriented, in

terms of new products tomorrow's

markets and f uture growth

5 Stress need of a seller Stresses need and wants of buyers



Sales Vs Marketing

# Selling Marketing

6Views business as goods producing

process

Views business as consumer

satisf ying process

7 Emphasis on staying with existingtechnology

Emphasis on innovation in every

sphere, on providing better value to the customers by adopting a

superior technology

8Diff erent department work as highly

separate watertight compartments

All departments of a business

operate in an integrated manner, the

sole pupose being generation of

consumer satisf action

9 Cost determines priceConsumers determine price, price

determines cost

10Selling view customers as the last

link in business

Marketing view the customers as the

very beginning of a business



Types of Personal Selling

Personal Selling can be broadly classif ied 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 CreatorsOrder Getters

OutsideOrder

Taker

Delivery

Salespeople

InsideOrder

takers Missionary

Salespeople

Front Line

salespeople

Sales Support

Salespeople

Consumer

Salespeople

Organizational

Salespeople

New Business

Salespeople

Technical

Support

Merchandisers



Organizatio

n The SalesEffo

rt



Nature of Sales Management Positions

Position

Guide

Reporting

Relationship

Job Objective Duties and

Responsibilities

Performance

Criteria

Sales

Manager

The Vice

President of

Marketing

The primary objective is to

secure maximum volume of

sales through eff ective

development and execution

of sales programmes andsales policies for all products

sold by the division

Sales Program

Organization

Sales force

Management

Internal andExternal Relations

Communication

Control

Sales exceed

the quantities

Prof it

Contribution of

the salesdepartment is

in line with

plan

The details of

sales plans are

in writing and

are acceptableto marketing

Department

Minimizing

turnover rate

of sales

executives



Nature of Sales Management Positions

Position

Guide

Reporting

Relationship

Job Objective Duties and

Responsibilities

Performance

Criteria

District

Sales

Manager

The Sales

Manager

The primary objective is to

secure maximum volume of

sales through eff ective

development and execution

of sales programmes atdistrict level in accordance

with established sales

policies and programmes

within the limits of the sales

budget.

Supervision of

Sales personnel

Control

Administration

Communication

Sales exceed

the quantities

Limit the

Sales Expenses

within thebudget

Minimizing

turnover rate

of sales

executives



Qualities of Eff ective Sales Executives

Ability to def ine the position's exact f unctions and duties in

relation to the goal

Ability to select and train capable subordinates and

willingness to delegate suff icient authority to enable themto carry out assigned tasks with minimum supervision

Ability to utilize time eff iciently

Ability to allocate suff icient time for thinking and planning

Ability to exercise skilled leadership



Relation with Product Management

Relation with Promotion Management

Relation with Pricing Management

Relation With Distribution Management

Sales Executives Relations with

Managers of other marketing Activities



The Sales Organizatio

n



Purpose of Sales Organizations

1. To Permit the Development of Specialist

2. To assure that all necessary activities are

perfo

rmed3. To achieve coordination or balance

4. To def ine authority

5. To economize on executive time



Setting up a sales organizations

Def ining 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




Structures

Line Sales Department Organization




Structures

Line and Staff sales organization




Structures

Functional Sales Organizations




Structures

Committee Sales Organization

± Sales Training Committee

General Sales Manager, Sales Training Manager,

Representative, Divisional, or Regional Sales managers Draf t 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 Mainlining

Industry

Manager

Construction

Industry

Manager Lumber

Industry

Branch Sales ManagerBranch Sales

ManagerBranch 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 Export SalesManager Wholesale

SalesManager Chain Store

Sales Personnel Sales Personnel Sales Personnel



Sales Department Relations



Company Success is Aff ected by

Not Just with

± Good Product at competitive prices



Company Success is Aff ected by

Dealings and associations of the Sales

department with customers and other publics

Relatio

nsof

sales department witho

therdepartments Inf luences the companys

reputations with many publics.

Public relations is additional responsibility of

sales excecutive.



Interdepartmental relations andInterdepartmental relations and CoordinationsCoordinations

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 themthe heads of department performing marketing activities

Achieve coordination through the generaladministrative off icers

± President, executive Vice President, or GM

Coordinating Committees made up of representativesof concerned departments

Informal Coordinating Methods



Sales Department Relations

Coordination of Personal

Selling withOther MarketingActivities

Sales and Advertising

Sales and Marketing

Information

Sales and Services

Sales and Physical

Distribution

Coordination's of personal

selling with otherdepartments

Sales and Production

Sales and Research and

Development

Sales and Personnel

Sales and Finance

Sales and Accounting

Sales and Purchasing

Sales and Public Relations

Sales and Legal

Sales department external

relations

Final Buyer Relations

Industry Relations

Government Relations

Educational Relations

Press Relations



Coordination Of Personal Selling With OtherCoordination Of Personal Selling With Other

Marketing ActivitiesMarketing 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 cooperativeadvertising programs

± Advertising Department helps sales department inf urnishing sales aids for the sales force

± Advertising conserves the sales forces time

± Advertising geared to help sales people where andwhen they need it most





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 eff ectiveness 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





Sales and Services

Sales and Physical Distribution

sales management unit 1 part 1

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