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SALES AND DISTRIBUTION MANAGEMENT (MBA-MK-03)

UNIT-1

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University Syllabus

Introduction:
• Selling as a Part of Marketing, • Sales Management and Salesmanship,
• Sales Management Process, • The Ones of Personal Selling,
• Role of Sales Manager, • Process of Personal Selling,
• Concept of Personal Selling, • Qualities of a Successful Salesman.
Goals in Sales Management:
• Goal Setting Process in Sales Management, • Preparation of Sales Budget,
• Analyzing Market Demand and Sales Potential, • Formulating Selling Strategies,
• Techniques of Sales Forecasting, • Designing Sales Territories and Sales Quota.

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Introduction of Sales

 Sales management is defined as “the planning, direction and control of personal selling, including recruiting,
selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal
sales force”.

 Sales force is responsible for the sale of products of a company and to add profit to the business operations and
fulfill social obligations. Sales force should be hardworking, result oriented, well educated and competent to
handle changing situations.

Managing the Sales Force

 Successful sales force management means:

 The right organization and aggregation against product lines and geographies.

 The right strength and qualification.

 The right compensation and incentive system.

Nature or Characteristics of Sales Management

The nature and characteristics of sales management can be explained by:

1- Its integration with marketing management, 3- Varying sales responsibilities.

2- Relationship selling, and

Integration with Marketing Management

 As sales management is a part of marketing management, sales planning should be integrated with marketing
planning.

 A company’s marketing team typically consist of two basic groups:-

1- Field Selling (or personal selling) team, and 2- Head-quarter marketing team.

 These headquarter based service and support functions are:-

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


BY: MAYANK PANDEY
 Promotion  Marketing Logistics  Co-ordination

 Marketing Research  Customer Service

Relationship Selling

 Buyers and sales people, who do business together, have some type of business relationships.

 Their relationships have a range or spectrum.

Steps in Designing and Managing a Sales Force

I. Objective Setting IV. Recruiting and Selecting Sales Force

II. Designing Sales Force: Structure and Size V. Guiding and Motivating Sales Force

III. Deciding Sales Force Compensation VI. Performance Rating of Sales Force

 Organizing and Managing a Sales Force (Sales forces are regularly assigned particular sales territories.
Various factors are taken into account when deciding the sales force for a particular territory. These include
the physical size of the force for a particular territory, transportation links within a territory, purchasing power
of consumers and their educational and living standards.)

Roles and Skills of Modern Sales Managers

 The role of sales manager in the modern company has changed. Instead of demanding, controlling, volume
oriented sales manager, the modern and successful sales manager is a team leader rather than a boss to the
salespeople.

 Some of the important changes in the roles of the modern sales manager are as follows:-

• Playing a strategic role in the company.


MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)
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• Working as member of the corporate • Multiple sales channels.
team.
• Using Latest technologies.
• Working as a team leader.

Sales Manager’s Duties and Responsibilities

 The following are some of the principal duties of a sales manager:

1. Organizing sales research, product research, etc.

2. Getting the best output from the sales force under him.

3. Setting and controlling the targets, territories, sales experiences, distribution expenses, etc.

4. Advising the company on various media, sales promotion schemes, etc.

5. Monitoring the company’s sales policies.

Types of Sales Managers/Sales Management Positions

Sales Management — Formulation of Sales Strategy

1. Determining the size of the sales force 6. Task allocation

2. Decision regarding type and quality of sales 7. Compensation of sales force


force required
8. Performance appraisal and control system
3. Designing the sales organization
9. Feedback mechanism to be adopted
4. Territory designing
10. Managing channel relationships
5. Recruitment and training procedures
11. Coordination with marketing departments

Methods of Selling

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


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 Telemarketing: Selling Concepts on the Phone  Sales Through Large Scale Fixed Shop
Retailers
 Sales on the Internet
 Sales Through Wholesalers and Retailers
 Mail Order Sales
 Direct Selling

Role of Sales Manager


Sales Manager as Coordinator

 The sales manager performs the function of a coordinator also. He ensures that the other departments in the
company are well informed of sales activities so that they can produce what is required, when it is required and
whether the same can be produced with the existing facilities or it requires changes etc.

 The sales manager also carries out coordinating work with the distribution network.

Sales Management and Control

 Sales manager should act as per the objectives set by the organization. He should analyze:

 present condition of the  the plans for future  ways to achieve those
firm plans.

 Sales manager’s job is to exercise control over his staff so that on the one hand they may look for advice and on
the other hand, they may give their best efforts and bring results.

Personal Selling
 Personal selling identifies the unfulfilled needs of ordinary customers. It is true that many companies believe that
direct selling would work in this country.

 Amway, Avon, Modicare, Eureka Forbes are a few example of companies which are using personal selling (direct
selling) and adding value for customer satisfaction.

Personal Selling-Introduction

 Some important aspects of personal selling are:

1. It enhances customer’s confidence in the seller.

2. It promotes long-term business relations through personal intimacy.

3. It provides a human touch to business transactions.

4. It helps facilitate the seller to understand each customer’s needs and preferences more clearly.

5. It helps satisfy a customer by modifying the product as per the customer’s choice and preference.

6. Personal selling followed by personal service helps build long-term relations between the business and the
customer.

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7. It helps keep up with the competition in the market, based on product customization as per customer’s
preferences.

8. It is a powerful and effective tool for convincing the customer about the product.

Changing Face of Personal Selling

1. Value Sharing: The salespeople share the same values as their customers and perceive the customer’s needs with
the sole view to serve them better.

2. Relation Building: A value-based relationship helps the salespeople to constantly mobilize resources and modify
the end product by catering to the specifics of the buyer. This culminates in building long-term relationships.

3. Role Playing: The salespeople, in personal selling, go far beyond realising sales volume. They act as
consultants to their prospective customers constantly advising them of new products.

4. Changing Approach: personal selling comes in a package containing the inputs of the experts from different
areas such as maintenance, installation, trouble shooting, delivery staff, sales personnel, etc.

Efficacy of Personal Selling

 Personal Selling with Respect to Product Strategy

Since salespeople are in direct liaison with prospective customers, their input is valuable during product
development. Their inputs help design the product based on customer preferences and needs. Products are changing
very fast. Old products are being replaced. New products are tried. Some new products achieve acceptance from the
customer, while some are forgotten and result in total loss to the manufacturer.

 Personal Selling and Pricing Decisions

Sales personnel undergo requisite interaction with prospective customers to gauge their mood with respect to
different price levels. Hence, their inputs are considered useful in formulating pricing strategies. The sales personnel
are also well aware of the competitors’ price and, based on the market reaction and customers’ sentiments, they can
advise a more prudent price policy to the management.

 Personal Selling and Distribution

Whether the channel of distribution is direct or indirect, the sales force has a significant role to play. The end
result of any distribution effort is the ready availability of the product to the customer, in the right quantity and at the
right place. If the product is not available when it is actually required by the customer, then the whole business
activity and all related efforts are rendered useless. In view of this, the sales force plays an important role in
coordinating, liaisoning and advocating the product’s utility to the end user.

 Personal Selling and Product Promotion

The sales force actually stimulates and generates enough interest in the customer and helps him make the final
decision to buy the product. Sharing the same values that the customer does, a salesperson provides motivation and
generates interest and confidence in the customer for the product. Without this effort the whole exercise of advertising
and public relations would be futile. Advertising and public relations actually support the efforts of the sales force.
And thus personal selling promotes a product.

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


BY: MAYANK PANDEY
Steps in Personal Selling

Prospecting

 Acquaintance References  Company’s Records

 Cold Calling  Newspapers

 Centre of Influence Method  Retailers

 Personal Observation Method  Other Methods

 Direct Mail or Telephone Method

Pre-approach

1. It is a method by which a salesman concentrates only on the prospects and not the suspects, thus saving his time
and energy.

2. It helps a salesman gain all the possible information about the prospect before approaching him. Hence any kind
of loose talk or serious mistake can be avoided during the sales talk.

3. Because of the pre-approach method, the salesman gains ample knowledge about the prospect before
approaching him. Hence, he is able to give a sales presentation more efficiently, effectively and with confidence.

4. It does not waste the prospect’s time and energy since the salesman is already aware of the needs and preferences
of the prospect. As a result the sales presentation is focused around the needs of the prospect and is short,
meaningful and to the point.

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


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Approaching

1. Approach Adopted by Travelling Salesmen

• A salesman may directly approach the prospect without any introduction whatsoever and then conduct an
interview.

• Another manner in which a salesman can seek an appointment with a prospect could be by sending an
advance mailer explaining his product and its benefits vis-a-vis other products available in the market.

• There is no better method of securing an appointment with a prospect than through a reference given by
the friend, relative or business associate of the prospect.

• Another effective way of securing an appointment and interview with the prospect is for salesmen to give
away gifts to the prospects before asking for an appointment.

• Sale letters have proved to be another kind of door opener. Such letters provide ample detail about the
product, benefits and schemes available with the product.

2. Successful Approach

• A successful approach enhances the sale and it is thus important for the running of a business.

• A failed approach will give an opportunity to the rival company.

• The approach helps in enlightening the prospect by providing him ample information about the product,
price, competitor’s product, benefits etc.
MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)
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For an approach to be successful, given below are some key guidelines:

 Prior Appointment  Relaxed Atmosphere  Effective Presentation

 Timing  Open Mindedness  Follow up

 Command  Courtesies

3. Methods of Approach

 Cashing in on Brand Name or the Company’s  The Shock Approach


Reputation
 The Approach of ‘Making the Prospect Feel
 Customer Benefit Approach Important’

 Innovative Product Opens the Door to the  The Survey Approach


Salesman
 Interactive Approach
 The Premium Approach

Presentation and Demonstration


 A good presentation is as important as a good product. The significance of a good presentation of the product can
be gauged from the fact that many a time an attractively packed presentation is sufficient to sell the product. A
good presentation can be in the form of attractive packaging and display, conspicuous placement of the product in
the display window, etc. A good presentation also includes the interior decoration of the shop and appearance of
the article.

The Close

 This is the last stage of any sales presentation. The whole exercise becomes useless if the sale does not take place.
Therefore, it is the most crucial stage for a salesman. The main aim of the close is to convince the prospect to sign
the order form or to place an order immediately rather than in the future.

 How to add value through personal selling…… (Process of personal Selling)

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


BY: MAYANK PANDEY
SALESMANSHIP

 The basic features of salesmanship are as follows:

a. Salesmanship involves persuasion of customers: A salesman has the ability to convince the people to buy his
product.

b. Salesmanship involves winning buyer’s confidence: Modern salesmanship aims at educating the customer
and providing a solution to his problems. This helps in winning his confidence.

c. Salesmanship involves providing information: Salesmanship is an educative process. It tells customer the
ways in which they can satisfy their needs. Salesman provides information about products available, their broad
features and their uses and utility to the customers.

d. Salesmanship aims at mutual benefit: Salesmanship is a two way process. It results in benefits not only to the
sellers but also to the buyers. It helps in solving the problems of the buyers and satisfying their needs. Customer
satisfaction leads to increase the profitable sales volume for the salesman.

REQUISITES OF EFFECTIVE SALESMANSHIP


 In order to practice effectively the highly skilled profession of salesmanship, wide knowledge and experience is
necessary.

 To be effective, a salesman should have knowledge of the following types:

1. Knowledge of Self 4. Knowledge of competitors

2. Knowledge of firm 5. Knowledge of customers

3. Knowledge of product 6. Knowledge of selling techniques

QUALITIES OF A SUCCESSFUL SALESMAN

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


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 To be successful, a salesman must possess several qualities:

1. Physical Attributes: A successful salesman must have sound health and pleasing personality. His job is demanding
and his physique should be sturdy, free from disease and disability of all types.

2. Mental Attributes: A good salesman must have a high degree of intelligence and imagination. He should understand
the customer quickly and read his mind accurately. He requires initiative to make additional sale and win permanent
customers.

3. Social Attributes: A salesman has to deal with different types of customers. He should have the ability to get along
with people of all types. Sociability implies good manners, a liking for people, sense of humour and conversational
ability. Good salesmen need to be polite, self-disciplined and courteous.

4. Vocational Attributes: Salesmanship is a highly skilled vocation and requires ambition, aptitude and enthusiasm. A
good salesman needs to have creative ability, leadership qualities, urge for excellence, optimism, etc. He must be fully
familiar with firm, its products and customers, competitors’ products and selling products.

GOAL SETTING IN SALES MANAGEMENT

In business, goal setting has the advantages of encouraging participants to put in substantial effort; and, because every
member has defined expectations set upon him or her (high role perception), little room is left for inadequate effort going
unnoticed.

Managers cannot be constantly able to drive motivation and keep track of an employee’s work on a continuous basis.
Goals are therefore an important tool for managers since goals have the ability to function as a self-regulatory mechanism
that acquires an employee a certain amount of guidance Shalley, 1995 and Locke and Latham (2002) have distilled four
mechanisms through which goal setting is able to affect individual performance:

1. Goals focus attention towards goal-relevant activities and away from goal-irrelevant activities.
2. Goals serve as an energizer; higher goals will induce greater effort while low goals induce lesser effort.
3. Goals affect persistence; constraints with regard to resources will affect work pace.
4. Goals activate cognitive knowledge and strategies which allows employees to cope with the situation at hand.

SALES FORECASTING, QUOTA AND TERRITORY MANAGEMENT

Introduction

Demand forecasting is a useful tool for planning. It helps estimate and forecast the market share of a firm. Most firms are
very often confronted with the task of projecting future sales of their product. Identifying future sales problems is no easy
task for companies, small or big. In some cases, it is very difficult to get any information about future market sales. Sales
forecasting is not just an estimation of sales; it is also matching sales opportunities — actual and potential—with sales
planning and procedures.

What is Sales Forecasting?

Sales forecasting, according to Cundiff and Still, is “an estimate of sales during a specified future period which is tied to a
proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces.”

Steps in Sales Forecasting

1. Defining the objectives to be achieved.


MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)
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2. Dividing various products into homogeneous 5. Collecting and analysing the related information.
groups.
6. Drawing conclusions from the analysis made.
3. Analyzing the importance of various factors to
be studied for sales forecasting. 7. Implementing the decisions taken.

4. Selecting the method. 8. Reviewing and revising the sales forecasting


from time to time.

Methods of Sales Forecasting


Survey Method

The survey method is based on the opinion of buyers and consumers. It is useful with respect to industrial products but not
as far as consumer goods are concerned.

Expert Opinion

According to this method, a company invites the opinions of executives and consultants who are acknowledged experts in
studying sales trends.

Market Studies Method

This method is commonly used by marketers for consumer goods. It is also known as the Market Test Method.

Sales Force Opinion Method

This method estimates the buyers intentions from experienced personnel in the sales force. They can easily forecast for
their respective territories.

Statistical Methods

Statistical methods are considered to be superior techniques of sales forecasting because their reliability is higher than that
of other techniques. Some commonly used statistical methods are given below:

a) Trend Method

b) Graphical Method

c) Time Series Method

The Time Series Method shows the future trends of sales. The various techniques that can be used for determining these
trends are:

i. Freehold or Graphical Method: This is the simplest method for obtaining a straight line. A trend line is fitted by
freehand to know future sales.

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ii. Semi Average Method: According to this method, data are divided into two parts, preferably with the same
number of years.

For example, (3-year semi-averages)

Sales Quotas
Importance of Sales Quotas

Sales quotas serve several purposes. The important objectives are shown in the diagram below:

Q u o t a s p r o v id e p e r f o r m a n c e t a r g e t s
S a le s Q u o t a s p r o v id e s t a n d a r d Ss a l e s
Q u o t a s Q u o t a s p r o v id e c o n t r o l O b je c t i v e s
Q u o t a s a r e m o t iv a t io n a l

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Types of Sales Quotas

A sales organization can set many types of quotas. The most common quotas are shown in the following diagram:

T y p e s o f S a l e s Q u o t a s

S a le s V o l uP m r o e f i t E x p e n s e A c t i v i t y Q u o t a
Q u o t a s Q u o t a s Q u o t a s Q u o t a s C o m b in a t io n s

Territory Management

The following diagram outlines the activities of territory management

Why Establish Sales Territories?

A company can develop and use sales territories for various reasons. Some of the reasons are as follows:

 To obtain entire coverage of the market  To reduce sales expenses

 To establish a salesperson’s responsibility  To allow better matching of salesperson to


customer
 To evaluate performance
 To benefit salespeople and the company.
 To improve customer relations

Factors to be Considered when Designing Territories

In setting up or designing sales territories, these four steps must be followed:

1. Selecting a basic geographical control unit 2. Determining sales potentials in control unit

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3. Combining control units into tentative 4. Adjusting for coverage difficulty and
territories reallocating tentative territories.

The two basic approaches commonly used for designing sales territories are discussed below.

1. Market Build-up Approach

2. The Workload Approach

Sales Forecasting and Global Factors


With globalization of trade, it has become difficult to forecast accurately, more particularly for the long-term.
Technological changes, sudden appearance of a competitor from any part of the world, selling the goods at competitive
prices or even resorting to dumping, are some of the problems faced in accurate forecasting. It requires a well planned
effort to take into consideration the factors influencing the sales strategy, so that sales forecasting may be a realistic one,
as far as possible. This situation has been drafted by Warren J Keegan as follows:

In terms of cultural sensitivity, consumer products are more sensitive than industrial products. Another rule of
thumb is that food products, especially those served at home, frequently exhibit the highest degree of cultural sensitivity.
What this means to managers is that some products of daily life use are likely to demand significant adaptation. Others
require only partial adaptation and still others are best left unchanged.

Three stages that a company must go through as follows:

1. Cave dweller. The primary motivation behind launching new products internationally is to dispose of excess
production or increase plant-capacity utilization.

2. Naive nationalist. The company recognizes growth opportunities outside the domestic market. It realizes that
cultures and markets differ from country to country and, as a result, it sees product adaptation as the only solution.

3. Globally sensitive. This company views regions or the entire world as a competitive marketplace. New-product
opportunities are evaluated across countries, with some standardization planned as well as some differentiation to
accommodate cultural variances. New-product planning processes and control systems are reasonably
standardized.

SALES BUDGET

Introduction

A sales budget is a programme designed for a stipulated time frame that highlights the selling expenses and anticipated
sales, quantitatively and in value terms. This helps in making an objective estimate of net profit on the selling operations.

There are three types of sales expenses:

1. Fixed Expenses: These expenses pertain to the compensation of salespersons, office rent, insurance and interest
on fixed assets like vehicles, office space, office equipment, etc.

2. Performance-related Expenses: These include commissions, incentives, bonus and awards, etc.

3. Activity-related Expenses: These include travel and communication expenses, etc.

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Significance of a Sales Budget

 It serves as a scale, or a yardstick, to measure the performance/progress of the company in terms of the
performance of the sales personnel, regions, products, marketing channels and customers.

 It helps identify the areas in which the company needs to strengthen or improve its performance.

 It serves as an indicator to control the expenses associated with the sales activity and to keep a constant watch on
the net profits of the company.

 It helps the planners to frame policies for actual market situations and provides the platform to establish ways
and means to get the business where they want it to be.

 It provides vital statistics to relate and dedicate the resources in an effective manner so as to realise the forecasted
sales and convert these figures into reality.

 It helps keep expenses under control so that by using scarce resources, the objective of net profits may be
achieved.

Sales Budget (Factors to be considered)


The sales manager should take into consideration the following factors while preparing the sales budget:

 Past sales figures and trend  Proposed expansion or discontinuance of


products
 Salesmen’s estimates
 Seasonal fluctuations
 Plant capacity
 Potential market
 General trade prospects
 Availability of material and supply
 Orders on hand
 Financial aspect

Example

Sales Corporation Ltd has three sales divisions at Delhi, Jaipur and Lucknow. The company sells two products —
Product A and Product B. The budgeted sales of the year ending 31st December 1998 at each place are given
below:

Delhi : Product A 2,00,000 units @ Rs 16 each

Product B 1,40,000 units @ Rs 10 each

Jaipur : Product B 2,20,000 units @ Rs 10 each

Lucknow : Product A 3,00,000 units @ Rs 16 each

The actual sales during the same period were as follows:

Delhi : Product A 2,50,000 units @ Rs 16 each

Product B 1,50,000 units @ Rs 10 each

Jaipur : Product B 2,50,000 units @ Rs 10 each

Lucknow : Product A 3,10,000 units @ Rs 16 each

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


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Steps in Designing a Sales Control System
1. Objective setting 4. Deciding tools and techniques of control

2. Designing different control levels 5. Variance analysis and reasons thereof

3. Designing a reporting system and a feedback


system

Sales Audit
The Aim of the Audit

i. Find out the true and accurate position of sales.

ii. To exercise control over future planning and over the results of the company.

iii. To analyze the past performance and learn from mistakes made in the past or shortcomings in any operation of
the sales department.

iv. To bring alertness to the organization.

v. To award increments, promotions, giving extra rewards in case of exceptional performances and to punish those
whose actions have resulted in loss to the company.

Sales audit can be conducted in two ways:

 By internal staff of the company.

 By outside auditors like chartered accountants or consultants — experts in particular type of business activities.

Auditor’s Plans
An auditor can ask a number of questions.

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


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 What are the strengths, weaknesses, opportunities or threats to the company (known as SWOT analysis)?

 What are the changes in consumer behaviour?

 What are the major changes in market segmentation?

 What are the changes in the major competitors’ strategies?

 What are the changes in the competitive environment?

 What are the pricing strategies of the competitors?

 What are the main channels of distribution?

 Have the marketing objectives been achieved or not?

 What major advertising media are being used by the competitors?

Credit Control
Steps in Designing a Credit Control System

1. Identifying credit distributors and wholesalers or consumers on the basis of past experience.

2. Processing the credit sanction.

3. Circulating and implementing the credit sanction.

4. Aging analysis (see the format given below).

5. Reviewing credit sanctions from time to time.

Cust­ Customer’s Credit Sanctioned Total Below 60 60­120 Above


omer Name Amount Days Outstanding days (Rs) days(Rs) 120
Code (Rs) (Rs) days(Rs)

0005 M/s A.S Ltd 10,000 60 50,000 30,000 5,000 15,000


0008 M/s Tara Ltd 5,000 30 40,000 30,000 — 10,000
0014 M/s Gulati Bros 10,000 60 12,000 4,000 6,000 2,000

The following factors should be taken into consideration in the credit rating of dealers/distributors:

 Organizational set-up of the firm  Financial position of dealers/distributors

 Market reputation  Analysis of financial statement

 Trade line of dealers/distributors  History of payments.

Budgetary Control
Budgetary control has become an essential tool of management for controlling costs and maximizing profits. The
technique of budgetary control is, in fact, a must for every business enterprise. To exert control over the budgets,
every organization has to set up an effective budgetary control system. The following factors should be examined
at the time of budgetary control reporting:

 What changes are most likely in the business environment?

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 What are the major objectives to be achieved?

Market Share Analysis


Ratio Analysis

The following ratios are useful for management control:

o Current ratio o Earnings per share

o Liquidity ratio o Dividend payout ratio

o Proprietary ratio o Dividend per share

o GP ratio o Debtors turnover ratio

o NP ratio o Average collection period

o Operating profit ratio o Working capital turnover ratio

The following are some of the advantages of ratio analysis:

 Ratio analysis helps in planning and forecasting.

 It helps in intra-firm comparison.

 It simplifies financial statements.

 It helps in coordination, control and communication.

Variance Analysis

Comparison of standards with actual performance is required to understand the performance of sales. The
difference of the actual from the standard is known as variance. The variance may be favorable or adverse
according to circumstances. Sales variance is used in marketing control. It has many types.

Sales Analysis

Sales analysis is the detailed examination of sales volume by territory, salesperson, customer, product line, etc. It
works on the basic principle that the trends of the total sales volume conceal rather than reveal the market reality.
The following methods are used for sales analysis.

a. Sales Analysis by Territory b. Sales Analysis by Salesperson

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c. Sales Analysis by Product Line d. Sales Analysis by Customer

Sales Cost Analysis

Sales cost analysis is a detailed examination of the costs incurred in the organization and administration of the
sales and marketing functions and its impact on sales volume. The following are the important sales costs which
should be kept in mind by a sales manager:

 Cost of goods per rupee of  Cost per segment  Cost per channel member
sales
 Cost per territory  Average cost per order
 Profit per rupee of sales
 Cost per salesperson

MBA-MK-03 SALES AND DISTRIBUTION MANAGEMENT (UNIT-1)


BY: MAYANK PANDEY

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