Introduction to Sales

Management

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 Evolution of Sales Management

• Situation before industrial revolution in U.K. (1760

AD).
• Situations after industrial revolutions in U.K., and
U.S.A.
• Marketing function splits into sales and other
functions like marketing research, advertising,
physical distribution, and customer service.

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 Evolution of personal selling
Partnership
strategies

Business
management

Consultative
selling

Negotiation

Persuasion

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 Marketing concepts
The five different marketing concepts:
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal concept

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Societal marketing concept

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Concepts – Selling and Marketing
Starting Ends
Focus Means
point

Factory Factory Selling and Profits through

promoting sales volume

Selling Concept

Starting Ends
Focus Means
point

Market Customer Coordinated Profits through

marketing customer satisfaction

Marketing Concept
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Differences between Selling and Marketing
No. Selling
1 Emphasis on product
2 Company manufactures the product first and then
decides to sell it
3 Management is sales-volume oriented
4 Planning is short-term-oriented , in terms of
today’s products and markets
5 Stresses needs of a seller
6 Views business as a goods producing process
7 Emphasis on staying with existing technology and
reducing costs
8 Different departments work as highly separate
watertight compartments
9 Cost determines price
10 Selling views customer as the last link in business
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Marketing
Emphasis on consumer needs and wants
Company first determines customers’ needs and wants
and then decides on how to deliver a product to satisfy
these wants
Management is profit-oriented
Planning is long-term oriented, in terms of new
products, tomorrow’s markets, and future growth
Stresses need and wants of buyers
Views business as consumer satisfying process
Emphasis on innovation in every sphere, on providing
better value to the customers by adopting a superior
technology
All departments of a business operate in an integrated
manner, the sole purpose being generation of
consumer satisfaction
Consumers determine price, price determines cost
Marketing views the customers as the very beginning
of a business
 Marketing exchange process
Market anticipation

Marketing mix
•Product
Producer/ •Price Consumer
marketer •Place
•Promotion

Exchange offer of value

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 What is Sales Management?

• One definition: The management of the personal

selling part of a company’s marketing function.

• Another definition: The process of planning,

directing, and controlling of personal selling,
including recruiting, selecting, equipping, assigning,
supervising, paying, and motivating the personal
sales force.

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 Nature of Sales Management
It includes :
(1)Its integration with marketing management.
(2)Scope of sales management.
(3)Roles and skills of a modern sales management.

Its Integration with Marketing Management

Head-Marke
ting

Manager- Manager – Manager – Manager – Manager –

Promotion Marketing Sales Market Customer
Research Logistics Service
Nature and role of sales management
Specific duties and responsibilities of a sales manager:
❑ The determination of sales force objective and goals

❑ Sales force organization, size, territory, and quota finalization

❑ Sales forecasting and budgeting

❑ Sales force selection, recruitment, and training

❑ Motivating and leading the sales force

❑ Designing compensation plan and control systems

❑ Designing career growth plans and building relationship strategies with key
customers
❑ Integration of technology with sales function

❑ Augment the sales force by augmenting the sales-closing process

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 Scope of Sales Management
During early period, it was narrow :
namely, (i) recruiting, (ii) selecting (iii) training, (iv)
motivating and (v) supervising salespeople

Present period, it is broader.

It includes, in addition to above tasks, following:
(vi) forecasting sales, (vii) designing sales territories,
(viii) coordinating internally & externally, (ix)
participating in budgeting & strategic planning
processes.
 Importance of Sales Management

• The only function / department in a company that generates revenue /

income.
• Sales people provide market research and customer feedback
• Sales people provide solutions to problems
• Sales people provide expertise and serve as information resources
• Sales people serve as advocates for the customer when dealing with the
selling organization.
• The financial results of a firm largely depend on the performance of the
sales management
• Many salespeople are among the best paid people in business.
• It is one of the fastest and surest routes to the top management through
many positions.
• Fresh graduates need knowledge of sales management.

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Managing the sales force
- Compensation
- Motivation
- Morale building
- Sales coaching/supervision
- Evaluation/Appraisal
- Training & Development
• Managing the marketing channels
• Ensuring growth and developing new accounts
• Sales communication & report writing
• Sales coordination and sales control,including sales expense control
• Building sales organization
• Assisting market management in aspects like product mix, pricing,
distribution, advertising and sales promotion
• Creating and maintaining the right image for the company and its
products in the market.

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 Mistakes in Sales
1. Not understanding selling
2. Expecting things to improve by themselves
3. Talking too much and not listening enough
4. Using words that kill sales
5. Not knowing when to close the sale
6. Not knowing how to close the sale
7. Lack of sincerity
8. Not paying enough attention to details
9. Letting yourself slump
10. Not keeping in touch with markets about latest developments.

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 Roles and Skills of a Modern Sales Manager

Some of the important roles / functions of a modern sales

manager are:
• Senior level sales manager is a member of the strategic
management team.
• Coordinate internally and externally.
• First level sales manager is a team leader, working with
and managing salespeople.
• Managing multiple sales / marketing channels.
• Using technologies (like CRM) to build superior
buyer-seller relationships.

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 Skills of a Successful Sales Manager

• People skills include abilities to motivate, lead,

communicate, coordinate, develop team-oriented
relationships, mentor, and resolve conflicts.
• Managing skills consist of planning, organizing,
controlling and decision making.
• Technical skills include training, selling, negotiating,
problem-solving, and use of computers.

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 SALES MANAGEMENT SKILLS

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 Selling skills
Problem-solving
Communication
skills
skills

Negotiation Listening
skills skills

Conflict management
and resolution skills

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FIGURE SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

CEO

President

Vice President of
Marketing

National Sales Leader

Zone Sales Leader

Regional Sales Leader

District Sales Leader

Assistant District Sales Leader

Nonmanagerial Salespeople
Sales Trainee Salesperson Key Account
 Nature of Personal Selling.
It Includes:
(i) Transactional and relationship selling.
(ii) Varying sales positions.
(iii) Sales as a career.

Transactional and Relationship Selling

* Transactional selling focuses on getting
an order or closing the sale.
* Relationship selling builds long-term
relationships with key customers.
 Varying Sales Responsibilities / Positions / Jobs
Sales Position
• Delivery salesperson
• Order taker salesperson.
• Sales support salespeople
• Missionary selling
• Technical selling
• Creative, Problem-solving,
Consultative sellers.
•Key account sales executive
Brief Description Examples
• Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.
• Inside order taker. • Behind a counter in a garment shop
•Telemarketing salesperson takes orders • Pharmaceutical products’ orders from
over telephone. nursing homes.
• Outside order taker. Also performs • Food, clothing products’ orders, market
other tasks. information from retailers.
• Provide information, build goodwill, • Medical reps. in pharmaceutical
introduce new products industry.
• Technical information, assistance • Steel, Chemical industries
• Getting orders from existing and new • Automobiles, refrigerators, insurance
household consumers policies
• Getting orders from business • Software and business solutions.
customers, by solving their business and
technology problems
•Responsible for few important •OEM customer like Tata Motors for a
customers. tyre manufacturer.
 Types of Personal selling
1. Industrial selling (or B-2-B Selling)
Four categories are:
1. Selling to resellers
2. Selling to business users

3. Institutional selling
4. Selling to governments

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 Types of Personal selling
2. Retail selling
Selling to the ultimate consumers for personal or
non-business use or consumption

3. Services selling
Basically activities or benefits provided to consumers

Services are intangible in nature

Cannot be standardized

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 Selling situations
Sales task and function
The forms of selling include maintenance vs developmental
selling, contacts, technical expertise, and important personal
characteristics.

Maintenance selling
Involves the act of servicing the existing accounts, securing
promotional cooperation, counting inventory and taking
replenishment orders, and delivering the products.

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 Selling situations
Developmental selling
Salespeople engaged in developmental selling are called
business development sales executives as they try to contact
the potential customers and build business for the firm – the
real salespeople.

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 Types of selling

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 Types of selling
Order taker sales people
Inside order takers – retail sales assistants

Delivery salespeople – deliver products to customers

Outside order takers – respond to customer calls

Order creators
Missionary salespeople – persuade customers to promote a
seller’s brand. Eg : MR

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 Types of selling
Order getters
Set of people who persuade customers to make a direct purchase

• Organizational salespeople

• Consumer salespeople (door to door hawkers etc)

• Technical support salespeople
• Merchandisers/ sales support people

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 Sales as a Career

• There are several levels of sales management positions

• Companies develop attractive compensation plans for
salespeople.
• Exciting and challenging sales career- as it deals with people
whose needs/wants are ever- changing.
• Fastest route to the top management positions through sales
management.
 Some Aspects of Strategic Sales
Management
• Development of the strategic sales organization.
• Choosing target customers and retaining them.
• The role of sales force and customer relationship management
strategy.
• Designing sales territories and sales force deployment.
• Long-term sales planning and forecasting.
• Strategic sales management plan should be based on the
strategic marketing plan which should be consistent with the
company’s strategic plan.
 Sales Planning Includes
Sales Objectives, Strategies and Tactics

The main components of planning in a company are objectives, strategies

and tactics. Their relationship is shown below

Decide / Set Develop Evolve Tactics /

Objectives Strategies Action Plans

E.G. A company wants to increase sales of electric motors by 15

percent, as one of the sales objectives. (see the next slide)

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 Illustrating the Relationship Between Sales Objectives,
Strategies and Tactics in Sales Planning

Sales Goals / Marketing Sales and Distribution Tactics /

Objectives Strategy Strategies Action plans

∙ Increase ∙ Enter export ∙ Identify the countries ∙ Marketing / sales head to

sales markets get relevant information
volume by ∙ Decide distribution channels ∙ Negotiate and sign
15 percent agreements in 3-5 months
with intermediaries

∙ Penetrate ∙ Review and improve sales ∙ Add channels and channel

existing force training, motivation partners.
domestic and compensation ∙ Train salespeople in
markets ∙ Use effective and efficient deficient areas.
channels. ∙ Train field sales managers
in effective supervision.
∙ Link sales volume quotas
to the incentive scheme of
the compensation plan.
 Emerging Trends in Sales Management
• Global perspective.
• Revolution in technology.
• Customer relationship management (CRM) / Sales Force
Automation ( SFA )
• Sales force diversity.
• Team selling approach.
• Managing multi-channels marketing systems.
• Ethical and social issues.
• Sales professionalism.
• E-Selling.

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