Amity School of Business

Module I
Sales and Distribution Management

MKTG 302

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 Topics Amity School of Business

• Concept, Objectives and functions of Sales

Management
• Evolution of Sales Management
• Nature and Role of Sales Manager’s Job
• The Personal Selling Process
• Technology’s Impact on Sales( Big Data, Sales
Force Automation, Cloud CRM, Social
Platforms, Mobile Technology)
• New Means of Selling
• Ethical Issues in Management

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 Definition Amity School of Business

• Acc. to AMA Sales Management can be 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”.
• It is a business discipline which is focused on the
practical application of sales techniques and
management of a firm’s sales operations. It is an
important function as net sales through sale of products
and services and resulting profits drives most
commercial business.

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 Marketing Approaches Amity School of Business

Marketing Strategy deals with co’s orientation towards

marketplace. It deals with mainly four concepts:
a) Production Concept
b) Product Concept
c) Selling Concept
d) Marketing Concept

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Concept’s Amity School of Business

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Sales as a component of Marketing Mix
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Objectives Amity School of Business

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Functions of Sales Management Amity School of Business

(i) Sales research and planning.

(ii) Demand creation.
(iii) Sales costs and budget.
(iv) Price fixations.
(v) Development of products.
(vi) Establishing sales territories.
(vii) Co-ordination of sales.

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 Functions of Sales Management
Amity School of Business

1) Past Present
2) Sales Environment
Overview 3) International environmen
Sales
Environment

Supervising Planning Personal

Sales Sales Reps
Managers
Motivating
Recruiting

Training

Managing a sales force involves recruiting, hiring, training, supervising, compensating

salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.
 Amity School of Business

• The Sales Environment

– Legal Issues
• Consumer protection laws
• Antitrust laws
• Unfair trade practices
• Fraud and misrepresentation
• Uniform Commercial Code
• Direct-to-consumer sales
• Antidiscrimination laws

– Ethical Issues
• Creating ethical corporate structures
• Relationships with customers
• Relationships with competitors
• Relationships within the firm
• Relationships with society

(Source: Hite and Johnston)

 Sales Environment Amity School of Business

• International

– Ethnic composition
– Religious orientation
– Social class environment
– Education
– Gender bias
– Differences in negotiating styles
– Differences in decision making
– Job status
– Social aspects
– Personal relationships
(Source: Hite and Johnston)
 Sales Management
Amity School of Business

1) Automation
2) Forecasting
Overview 3) Financial Planning
Sales
4) Quotas
Environment
5) Time and Territory

Supervising Planning Personal

Sales Sales Reps
Managers
Motivating
Recruiting

Training

Managing a sales force involves recruiting, hiring, training, supervising, compensating

salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.
 Planning Amity School of Business

• Planning-is the conscious, systemic process of making decisions about

goals and activities that an individual, group, work unit, or organization
will pursue in the future and the use of resources needed to attain them
– Automating the Sales Force
Hardware
• Type of computers, printers, copiers, phones, etc.
Software
• What type software does the sales force need?
 Planning Amity School of Business

• Sales Forecasting
• How do we forecast sales?
– Sales force composite
– Jury of executive opinion
– Survey of buyer intentions
– Trend projections
– Moving averages
– Exponential smoothing
– Regression
 Planning Amity School of Business

• Financial Planning for Sales

– Budgeting
• Salespeople expenses
• Administrative expenses
• Other selling payroll
• Other selling expenses
• Communication expenses

– Profit objectives
• Break-even analysis
• Controlling the budget
• Selling the budget to top management
(Source: Hite and Johnston)
 Planning Amity School of Business

• Quotas
– Sales quota- the specific sales or profit objective a salesperson is expected to achieve
(Source: Perreault and McCarthy)
• Dollar sales
• Unit volume
• Margin
• Selling effort
• Product type
(Source: Kotler)
– Other types of quotas
• Expense quotas
• Profit quotas
• Activity quotas
(Source: Hite and Johnston)
 Planning Amity School of Business

• Time and Territory Management

– Optimum time must be spent with those prospects with the greatest
potential

– Territory management involves:

• Identification and classification of prospects
• Analysis and development of the salespeople’s work loads
• How many salespeople will the territory support
• Territory’s boundaries
• Optimum way to travel from one prospect to the next
(Source: Hite and Johnston)
 Sales Management
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Overview
Sales 1) Recruiting
Environment 2) Selecting

Supervising Planning Personal

Sales Sales Reps
Managers
Motivating
Recruiting

Training

Managing a sales force involves recruiting, hiring, training, supervising, compensating

salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.
 Recruiting Amity School of Business

• Recruiting
– Recruitment- set of activities and processes used to legally obtain a
sufficient number of individuals that takes the people’s and the sales
force’s best interests into consideration

– The sales manager should recruit individuals whose values and goals
match those of the firm

– Where do you find sales recruits

• Other departments Recommendations
• Institutions
• Professional associations
• Employment agencies
• Unsolicited applicants
 Recruiting Amity School of Business

• Selecting
• What is the firm looking for?
– People that can sell successfully
– Remain with the company over a long period of time

• Problems
– Legal and ethical restrictions
– Firm must maintain a good image
– Must have a valid job description
 Sales Management
Amity School of Business

Overview
Sales
Environment

Supervising Planning Personal

Sales Sales Reps
Managers
Motivating
Recruiting

2) Developing Training 1) New sales force

current sales training
force

Managing a sales force involves recruiting, hiring, training, supervising, compensating

salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.
 Training Amity School of Business

• Training
– Sales Training- effort put forth by an employer to provide the
salesperson job related culture, skill, knowledge, and attitudes that
result in improved performance in the selling environment
– What is needed for a training program to work?
• Provide a job description
• Provide product knowledge
• Provide company knowledge
• Provide market knowledge
• Selling techniques

– Why train
• Decreased turnover
• Increased sales
• Enhanced customer relationships
• Decreased costs
(Source: Hite and Johnston)
 Sales Management
Amity School of Business

Overview
Sales
Environment

Supervising Planning Personal

Sales Sales Reps
Managers
Motivating
Recruiting

1) Motivating
2) Compensating Training
3) Indirect Incentives

Managing a sales force involves recruiting, hiring, training, supervising, compensating

salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.
 Motivating Amity School of Business

The most commonly used definitions of salesperson motivation include

three dimensions:
(1) intensity, referring to the amount of mental and physical effort put
forth by salespeople,
(2) persistence, describing the salesperson’s choice to expend effort over a
period of time, and
(3) direction, implying that salespeople choose where their efforts will be
spent among various activities.

• Motivating
– Recognition

– Awards
 Motivating Amity School of Business

• Compensating
– Salary

– Commission

– Bonus

– Combinations

(Source: Hite and Johnston)

 Sales Management
Amity School of Business

1) Leadership Overview
2) Supervision Sales
Environment
3) Evaluating

Supervising Planning Personal

Sales Sales Reps
Managers
Motivating
Recruiting

Training

Managing a sales force involves recruiting, hiring, training, supervising, compensating

salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.
 Supervising Amity School of Business

• Leadership
– Leadership- the process of getting things done through others
– Leadership Styles
– Types of leadership

• Supervision
– Supervision- the actual oversee and directing of the day-to-day activities of
salespeople
 Evolution of Sales Management
Amity School of Business

• Pre-industrial Revolution Period

• Production-oriented process
• Sales-Oriented period
• Customer-oriented period

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 1.Pre-industrial Period Amity School of Business

• Small scale industries existed prior to Industrial

Revolution period.
• The craftsman turned entrepreneur, looked after all
areas and functions of management. These areas are
production, finance and design and development .
• Sales and marketing was never a serious problem in
those days since demand for exceeded supplies.
• Selling was only a part-time job for these entrepreneurs.
• This job was mainly confined to demonstration or display
of their craftsmanship.

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 2.Production –oriented period Amity School of Business

• Industrial Revolution in 1760’s heralded this period.

• Mass production technique introduced during this period,
increased the production level manifold.
• Characteristics of this period:
• Prevaled in developed nations in the west till 1930’s.
• Focus was on manufacturer and production capacity.
• Emphasis was laid on production process which yielded
volumes.
• Marketing meant “ sell what is produced”
• Environment was that of a seller’s market.

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 3.Sales-oriented period Amity School of Business

• Economic recession of 1930’s was the starting point

where demand declined.
• Characteristics:
• Prevalent in the developed nations in the past. Still
prevalent in developing nations.
• Focus is on sales and sales promotion with emphasis on
sales volume.
• Marketing means” product does not sell by self- it has to
be pushed. Customers are to be manipulated.
• Environment is highly competitive where “ supplies are in
excess and production capacity is more”

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 4.Customer-oriented period Amity School of Business

• Globalization and liberalization have further increased

the competition manifold.
• Characteristics:
• Prevalent in developed nations after 1960s .Developing
nations are also following this approach by 1980s.
• Focus is on “customer satisfaction”.
• Emphasis is on “problem solving” on customer “needs”
and “wants” to achieve customer loyalty.
• Marketing means customer satisfaction before and
during and after sales.
• Environment is that of “business market” having severe
competition.
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 Nature and role of Sales Manager’s Job
Amity School of Business

• A sales manager is responsible for meeting the sales targets of the organization through
effective planning and budgeting.
• A sales manager needs the support of his sales team where each one contributes in his
best possible way and works towards the goals and objectives of the organization
• The duties must not be imposed on anyone, instead should be delegated as per interests and
specializations of the individuals.
• A sales manager devises strategies and techniques necessary for achieving the sales targets.
• It is the sales manager’s duty to map potential customers and generate leads for the
organization.
• A sales manager is also responsible for brand promotion. He must make the product popular
amongst the consumers.
• Motivating team members is one of the most important duties of a sales manager.
• It is the sales manager’s duty to ensure his team is delivering desired results. Supervision is
essential.
• He is the one who takes major decisions for his team. He should act as a pillar of support for
them and stand by their side at the hours of crisis.
• A sales manager should set an example for his team members. He should be a source of
inspiration for his team members.
• A sales manager is responsible for not only selling but also maintaining and improving
relationships with the client. Client relationship management is also his KRA.
• As a sales manager, one should maintain necessary data and records for future reference

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Personal Selling Process
Amity School of Business

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 New Means of Selling Amity School of Business

• Technological Revolution
• Customer Relationship Management
• Sales Force Diversity
• Team Selling Approach
• Managing Multi Channels
• Ethical and Social Issues

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 Technology’s Impact on Sales Amity School of Business

• Big Data is a term used to describe a collection of data

that is huge in size and yet growing exponentially with
time.
• Types Of Big Data-BigData' could be found in three
forms:
• Structured- Any data that can be stored, accessed and
processed in the form of fixed format is termed as a
'structured' data
• Unstructured- Any data with unknown form or the
structure is classified as unstructured data
• Semi-structured- Semi-structured data can contain both
the forms of data.
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 Amity School of Business

Characteristics Of Big Data

(i) Volume – The name Big Data itself is related to a size which is enormous. Size of data plays a very
crucial role in determining value out of data. Also, whether a particular data can actually be considered
as a Big Data or not, is dependent upon the volume of data. Hence, 'Volume' is one characteristic
which needs to be considered while dealing with Big Data.
(ii) Variety – The next aspect of Big Data is its variety.
Variety refers to heterogeneous sources and the nature of data, both structured and unstructured.
During earlier days, spreadsheets and databases were the only sources of data considered by most of
the applications. Nowadays, data in the form of emails, photos, videos, monitoring devices, PDFs,
audio, etc. are also being considered in the analysis applications. This variety of unstructured data
poses certain issues for storage, mining and analyzing data.
(iii) Velocity – The term 'velocity' refers to the speed of generation of data. How fast the data is
generated and processed to meet the demands, determines real potential in the data.
Big Data Velocity deals with the speed at which data flows in from sources like business processes,
application logs, networks, and social media sites, sensors, Mobile devices, etc. The flow of data is
massive and continuous.
(iv) Variability – This refers to the inconsistency which can be shown by the data at times, thus
hampering the process of being able to handle and

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How is Big Data actually used?
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• Better Understand and target customers.

• Understand and optimize Business
Processes.
• Improving Health
• Improving Security and Law Enforcement.
• Improving Sports Performance
• Improving and Optimizing Cities and
Countries.

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 Sales Force Automation Amity School of Business
Sales force automation (SFA) is an integrated application of customizable
customer relationship management (CRM) tools that automate and streamline
sales inventory, leads, forecasting, performance and analysis. SFA tools include
Web-based (hosted CRM) and in-house systems.

Advantages of Sales Force Automation

i.Increased Productivity
ii.Competitive Advantage in terms of cost, revenue, and market share.
iii.Timely information regarding the sales.
iv.Increased customer satisfaction with the reduced response time.
v.Keeping proper records of the customer, that can be tracked down easily.
vi.The sales forecast can be done accurately with the help of past sales data. Efficient
utilization of scarce resources.
vii.Less time required by the sales manager to prepare the daily, quarterly, monthly or
annual reports.
viii.Optimum utilization of time by the staff members.

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Amity School of Business

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 Amity School of Business

• Disadvantages of Sales Force Automation

i. Data entry is too much time consuming.
ii. Difficult to accustom with the software system.
iii. With automation, the personal touch is lost.
iv. Tedious job of regularly upgrading the system, making the new
entries, cleaning the unwanted data entries and maintaining the
system as a whole.
v. Sometimes difficult to integrate with company’s other
management information systems.
vi. The high cost involved in the installation and maintenance of the
system.
The SFA is the part of the company’s Customer Relationship Management system; that records every
stage of the sales process. It is often called ad Customer Relations Management Software.

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Difference between SFA & CRM
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 Cloud CRM Amity School of Business

• Cloud CRM (or CRM cloud) means any customer relationship

management (CRM) technology where the CRM
software, CRM tools and the organization's customer data
resides in the cloud and is delivered to end-users via the
Internet.

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 Benefits of Cloud CRM Amity School of Business

• One main benefit of CRM software delivered in the cloud is scalability. A cloud-based
system is designed to be flexible with expanding capacity so a business can scale up
(or down) their CRM depending on current business needs. Typically costs of the
CRM, which is often based on the number of users and storage requirements also
scales up and down as you requirements change. In most cases scaling up is as
simple as contacting your cloud CRM vendor and requesting changes to your
implementation.
• Cloud CRM is often a good choice for small businesses who lack the in-house IT
expertise to deploy, manage and upgrade an on-premises CRM application. With
Cloud CRM the vendor is responsible for managing the software, providing updates
across the system and taking care of technical glitches, bugs and other issues as
they arise.
• Other benefits of CRM in the cloud include integration with commonly used office
applications and email systems, integration with social data (social CRM) and
automatic data backups.

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 Social Platforms Amity School of Business

• Social media marketing, or SMM, is a form of internet marketing that involves

creating and sharing content on social media networks in order to achieve your
marketing and branding goals. Social media marketing includes activities like
posting text and image updates, videos, and other content that drives audience
engagement, as well as paid social me
Social media marketing can help with a number of goals, such as:
• Increasing website traffic
• Building conversions
• Raising brand awareness
• Creating a brand identity and positive brand association
• Improving communication and interaction with key audiences
The bigger and more engaged your audience is on social media networks, the easier it
will be for you to achieve every other marketing goal on your list!

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 Social platforms(contd) Amity School of Business

Marketing tips to kick of SMM:

• Social Media Content Planning
• Great Social Content
• A Consistent Brand Image
• Social Media for Content Promotion
• Sharing Curated Links
• Tracking Competitors
• Measuring Success with Analytics
• Social Media Crisis Management
 How to Choose the Best Social Media Platforms for
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Marketing
• Facebook
• Google+
• Pinterest
• Twitter
• LinkedIn
• YouTube
• Reddit

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 Mobile Technology Amity School of Business

• Mobile technology is a form of technology that is mostly used in cellular

communication and other related aspects.
• It uses a form of platform where by many transmitters have the ability to send data
at the same time on a single channel. This platform is called Code-division multiple
access (CDMA). This platform allows many users to make use of single frequencies
because it restricts the likelihood of interference of frequencies from two or more
sources. This channel has evolved over the years.
• The mobile technology is rapidly evolving; over the years, its uses are becoming
diverse and is gradually replacing some similar sources in the market that are also
used for communication e.g. post office and land lines.
• The mobile technology has improved from a simple device used for phone call and
messaging into a multi-tasking device used for GPS navigation, internet browsing,
gaming, instant messaging tool etc. Professionals argue with the trend that the
future of computer technology is rest on wireless networking and mobile
computing. Mobile technology through tablet and portable computers are becoming
more and more popular.
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 Ethical Issues in Management Amity School of Business

• Ethics are the moral principles of right and

wrong that guide people’s behavior.
Approaches to Ethics:
• The Golden Rule
• The Conventionalist Approach
• The Protestant Ethic
• The Market Imperative
• The Libertine Ethic
• The Utilitarian Ethic
• Source :Tanner 49
 Common ethical issues between Customers and
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Their Salespeople
• Misrepresentation- when a salesperson lies
about a product, making claims for it that are not
true. e.g. Insurance
• Bribery- It is defined as any offer of a gift that
secures undue influence. E.g.pharmacuetical
cos.
• Puffery- It is an allowable exaggeration as long
as it is vague and general, with no specific facts.
• Privacy- giving away customer’s confidential
information to another customer.

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Changing form of Sales Management
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Transactions Relationships

Individuals Teams

Sales Volume Sales Productivity

Management Leadership

Local Global

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Types, Titles, and Hierarchical
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Levels of Sales Managers

V.P.
sales

National
sales manager

Zone, division, or
regional sales manager

District, branch, or
field sales manager

Sales supervisor
 Expanding Roles of Sales Managers
Amity School of Business

Based on the new marketing definition, there are three major implications
for sales managers:
• achieve a continuing 1. • build ongoing relationships
dialogue with Manage customer and mutually profitable
customers, relationships partnerships with customers,
• personalize treatment • encourage salespeople to go
of valued customers, beyond selling and serve as
• increase customer consultants and partners.
retention. What sales
managers must do
3. 2.
Manage the hybrid Serve as customer
sales force consultants
work with
• telesalespeople,
• telemarketers,
• e-commerce salespeople,
• direct mailers,
• manufacturers’ agents.