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CHAPTER ONE

SALES MANAGEMENT

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1. 1 Definition of Sales Management
Initially the Sales Management referred exclusively to the direction of
sales force personnel. Latter, the term took on broader significance-in
addition to the management of personal selling.
 Sales management meant for all marketing activities,
including advertising, sales promotion, marketing research,
physical distribution, pricing, and product merchandising.
 Sales managers are responsible for organizing the sales
effort, both within and out side their companies.
 Within the company means product quality, price, effective
communication etc.
 Out side the company means demand of the product,
procurement of raw materials competition between the
industries and among the industries etc.

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Definition of Sales Management
• Another responsibility is also there, i.e. marketing
decisions, such as those on budgeting, quotas, and
territories.
• The Sales executives, do not carry the full burden in the
effort to reach these objectives, but they make major
contributions.
• Top management has the final responsibility to all the
factors. Sales executives provide estimates on market and
sales potentials, the capabilities of the sales force and the
middleman and the like. After finalizing all these things
and they will implement the selling plans.
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MARKETING
• American Management Association has defined as “The
Process of planning and execution, conception, pricing,
promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and
organizational objectives.”
• Sales Management is the process of current exchanges of
goods, while marketing Management is the process of
future exchanges of goods/services.
• This means sales Management involves current activities
designed to persuade customers to buy goods/services.
Thus sales management is a part of Marketing
Management.
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• David Jobber &Geoff Lancaster has defined as “ The
planning, direction and control of personal selling,
including recruiting, selecting, equipping, assigning,
routing, supervising, paying and motivation as these
tasks, apply to personal sales force.”

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1.2 Functions of Sales Management
There are THREE functions
1. Managerial Functions
 Planning:-This involves, forecasting demand, sales
territory planning, Personal selling and promotional
efforts.
 Organizing:-This involves, structure, resource
allocation, responsibility assignment and delegation of
authority etc.
 Direction:-This involves leadership, motivation,
communication etc.
 Control:-This involves, delegation, quota fixing,
performance evaluation, incentives and budgets.

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Co-ordination
This involves, liaison, integration of various elements,
public relations and good will, contact with prospective
buyers etc.
2. Staff Functions
 Recruitment and selection
 Deployment and evaluation of performance
 Training and development
 Career development
 Compensation and incentives
 Motivation and empowerment
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3. Advisory/Liaison Functions
3.1 Advisory Functions
 Specialized advises given to management like, Product
attributes about quality aspects, Pricing policies,
Promotional steps, distribution polices and channel
selection, advertisement polices like media selection,
Transportation and warehousing aspects etc.
3.2 Liaison Functions
 Liaison with departments, Production Department,
Finance department, Marketing Department, Research and
Development, Distribution net work, After Sales Service
department ( guarantee or warranty). Recently in USA
many companies are implementing the before sales service.
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1.3 Objectives of Sales Management
1. General objectives: - There are THREE general objectives
A. Generate sufficient sales volume
By proper planning, sales territories are assigned to
salesmen based on sales potential and sales forecast
made in the planning stage.
 Sales volume depends on the number of sales persons.
The sales persons are motivated by various methods like
commissions, incentive quotas etc.
 The top management fixes the economic level of
production i.e. above Break-Even Point to ensure
profitable operation.

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Objectives of Sales Management
B. Contribute towards current profit:-Sales Management
and financial results are closely linked to each other.
 Sales revenue has been directly linked to performance
efficiency of the sales force.
 Cost of sales includes salary, commission and travelling
expenses of sales person. In order to minimize these, and
optimum level of sales force is determined through
scientific methods.
 Sales revenue is related to sales which depend upon its
frequency and effectiveness of all.

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C. Ensure continuous growth of the organization

A number of growth strategies are available like


 Diversification
 Integration
 External growth: Joint venture, mergers,
acquisition, holdings etc.
 Competitive products and customer responses.
 Own products and customer response.
 New product information.
 Customer loyalty and good will.
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1.4 Characteristics of sales management
1. Clear cut authority, responsibility and accountability
2. Effective lines of communication
3. It must be flexible enough to adjust future changes on
growth and objectives. Like expansion or
diversification or contraction.
4. Capable of bridging the gap between market demand
and productive capacity of the firm.
5. Co-ordination of sales department and other
departments
6. Right information given to the concerned authorities
within the time about the organization .
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Importance of sales management
 Production management in the factory with suitable
planning, organizing, directing and control, produces
items of sufficient quantity at right time of right quality.
 Merchandising needs a lot of co ordination and control.
 Times have changed. Today’s the sales men are not only
motivated by monetary benefits, they need other benefits
like autonomy, dignity and recognition.
 Sales management and personnel employed were just like
ear and eyes of the firm.
 To collect right feed back from the customer’s are very
important for success of the firm, this information only
possible for sales mangers, because they directly involved
with the customers.
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Structure and Organization
 Each and every organization can maintain both
centralization and decentralization according to their
convenient
Structure and Organization

1. Line organization
 Here managers are line authority and enjoy considerable
freedom of the action. Those who are directly involved
in the organization is called line organization. Line
managers have the power and authority for taking
decisions and also performing their duties.
 Like marketing mangers or sales mangers, these are
directly involved in the sales and give direction to the
concerned sub- ordinates like sales men for sales aspect.
2. Line and Staff organization: Those who are not directly
involved in the organization are called staff. These persons
necessary directions to the line managers. These persons
give some advice to the concerned persons like the
marketing research officers give some directions to the
marketing managers about the product or new product.
3. Functional sales organizations
 In this function different sales functions are grouped and
placed under the direct control of managers who are
specialists in their own field. Salesmen are directly
controlled by each of these specialists.lke counter to
counter sales or direct sales or door to door sales(orders
takers, order creators. order getters etc.)
Types Of Sales
1. Order takers
A. Inside order takers
 Here the customer has full freedom to choose products
without the presence of a Sales person. The sales
assistant’s task is purely transactional–receiving
payment and passing over the goods.
 Another form of inside order taker is the telemarketing
sales team who support field sales by taking
customers’ orders over the telephone.
 This is applicable generally for essential
commodities or food stuffs etc.

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Types of Sales cont…..
B. Delivery salespeople
 The salesperson’s task is primarily concerned with
delivering the product. In the UK, India, milk,
newspapers and magazines are delivered to the door.
C. Outside order-takers
 These salespeople visit customers, but their primary
function is to respond to customer requests rather than
actively seek to persuade. They do not deliver and to
a certain extent they are being replaced by more cost
efficient Telemarketing teams.

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Types of Sales Cont…..
2. Order-creators
 Missionary salespeople:-In some industries, notably the
pharmaceutical industry, the sales task is not to close the
sales but to persuade the customer to specify the seller’s
products. For example, medical representatives calling on
doctors cannot make a direct sales since the doctor does not
buy drugs personally, but prescribes (specifies) them for
patients.
3. Order-getters
 They consists of those in selling jobs where a major
objective is to persuade customers to make a direct
purchase. These are the front line salespeople and in many
ways this type of selling represents the most challenging
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from the different types of selling.
Types of Sales Cont…..
 Orders may be negotiated nationally at head office
 These selling persons are on behalf of whole sale
distributors or producers are directly meet the retailers
and get orders and then delivered the goods to retailers
on the whole sale prices or some little bit concerned the
price .
 And in addition to that the recent research studies the
majority of the consumer goods industry , they will fix the
retail price and they will give some remuneration or
commission to the retailers or concerned sellers.
The end

THANK
YOU

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