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Sales management


The only business function that
generates revenue.
WHY?
 Market is too big
 Competitors are too big
 Customers are everywhere
 Opportunities are immense
 Ambitions are limitless




                      and……

                      u r not
                      RAVAN
What is the Animal all about
                    Revenue Generation (Sales Earning)
                    Revenue Delegation (Sales Organisation)
                    Revenue Continuation (Sales Motivation)
                    Revenue Detection (Sales Monitoring)
                    Revenue Collection (Sales Accruals)
                    Revenue Retention (Sales Force continuum)




Planning, direction and control of personal selling including recruiting, selecting, training, equipping, assigning,
    supervising, compensating and motivating as these tasks apply to the personal sales force.
Sales Organisation determinants
 Type of Market
        Geographic and Demographics
               (Pharma, FMCG sales)


 Type of Product
        Consumer Products
        Customer Products
        Industrial Products
Sales organization

 With various tasks required to be
  performed the enterprise had to create a
  structure to ensure that work is done.
 Principles of structure: authority,
  responsibility, performance, support/co-
  ordinate.
Purpose of organization

 Eliminate waste of effort
 Minimize friction
 Maximize co-operation
 Permit development of specialists
 Define authority
 Fix responsibility
Types of organization
structures
 Line organization: line managers
  perform sales and sales management
  activities.

 Functional organization: focus is on
  the principle of specialization. Each
  specialist has a functional responsibility
  and are permitted to direct and control
  the salesperson thru their immediate
  superior.
Line Sales Organization structure

                         Head –Marketing



                           Sales Manager



Area Sales Mgr     Area Sales Mgr   Area Sales Mgr   Area Sales Mgr


 Sales Force        Sales Force       Sales Force      Sales Force


                 Clear authority & Responsibility
                 Quick response & Decision, Low Cost
                 Weak on marketing inputs
                 Sales manager controlled
Functional Sales Organization




                  Administrative Simplicity
                  Access to Specialists
                  Multiple reporting
                  HOD is Pressures to co-ordinate
The sales budget
              A budget is a quantitative expression of plans. Most well
               managed enterprises use a budget which is a
               comprehensive and coordinated plan for the operations
               and resources of the enterprise.
              It is a formal and intricate process
              Approaches are either incremental or zero based.
              In a volatile economic climate organizations estimate
               optimistic, realistic and pessimistic scenarios.




To the sales department, the budget is a blue print for making sales. It involves money invested in distribution
     facilities, promotion efforts, and sales personnel. It is the foundation on which to plan sales objectives and the
     means of achieving them during the coming year.
Sales budget
Critical factors considered:
1. past trends
2. Sales force estimates
3. Trade prospects
4. Present scenario
5. Customers: existing and potential
6. Government policies
7. Industry environment
Number of sales people
 Decision on the size of the sales force is very
  complicated because structure of the customers
  vary in each territory, the level of competition
  varies across territories, the connectivity for
  travel varies etc.
 There are 3 generally accepted approaches:
  affordability, incremental and workload
  methods.
Sales Force Recruitment
TYPES OF SALES GUYS
 Dog – Smells the business
 Elephant – Pounds everyone around
 Shark – Screws up Competition
 Giraffe – Over the top



LOOK AT THE OBJECTIVE AND PICK PEOPLE
      Quality v/s Loyalty
      Growth v/s Incentives
      Partner v/s Employee
Recruitment Sources

 Competition
 Referrals
 Staffing Agencies
 Friends and Families
Sales Training
 SHARE YOUR DREAM – Vision Illustratiion
 SHARE YOUR PLANS
 SHARE YOUR PRODUCTS
 SHARE YOUR CHARTS



 BUILD HIS DREAMS – Incentives
 BUILD HIS CAREER – Organisation Chart
 BUILD HIS CHARACTER – interest in his personal space
Sales Segmentation
Types ….
 Geographic Territory (FMCG)
 Product Territory (pharma)
 Functional Territory (industrial products)




Define Sales Territories to….
 Increase / improve customer coverage
 Control selling expenses
 Effective evaluation of salesman’s performance.
 improve customer relations




A sales territory consists of existing and potential customers assigned to a sales
    person. The territory may or may not have geographic boundaries.
Sales Target Setting
                                 WHY….
                                  To help management motivate sales people.
                                  To direct sales people where to put there efforts.
                                  To provide standards of performance evaluation
 S-specific
 M-measurable
 A-achievable
 R-realistic                                        Value Targets
 T-time bound                                       Volume Targets
                                                     Product Targets
                                                     Client/Account Targets
                                                     Market Share Targets


Targets are quantitative goals assigned to individual sales persons for a specified period of time.
Sales Force Motivation
                                    Drive to initiate an action.

                                    The intensity of effort in an action

Why motivation                      The persistence of effort over

 Frequent rejection
 Physical separation from company support
 Direct influence on quality of sales presentation
 Indirect influence on performance
Sales force motivation

 “the desire to make an effort to fulfill a
  need is motivation”
 Motivation includes three dimensions:
  Direction, Intensity and persistence.
 Motivation may also be Intrinsic or
  extrinsic
Maslow’s theory
                                       Intense job challenge, full
                                       potential, FULL EXPRESSION,
                                       creative expansion.
               Self
           Actualisation

                                       respect, recognition, prestige,
           Esteem needs                independence, attention,
                                       IMPORTANCE,

                                       Belonging, ACCEPTANCE, love,
            Social needs               affection, friendships.

          Safety needs                 SECURITY, stability, dependency,
                                       protection


       Physiological needs             Hunger, thirst, reproduction,
                                       shelter, clothing, air, REST.
Food, clothing, shelter, health care
Sales Monitoring

 Annual Target Meetings
 Monthly Review Meets
 On Field Visits
 Dealer/Client Feedback
 Competition Reports
Sales Force Retention

 Incentivise
 Recognise
 Socialise
 Apprise
 Prioritise
HAPPY SELLING


 “remember, money is not everything

 ………but its not short of everything”

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Sales management

  • 1. Sales management The only business function that generates revenue.
  • 2. WHY?  Market is too big  Competitors are too big  Customers are everywhere  Opportunities are immense  Ambitions are limitless and…… u r not RAVAN
  • 3. What is the Animal all about  Revenue Generation (Sales Earning)  Revenue Delegation (Sales Organisation)  Revenue Continuation (Sales Motivation)  Revenue Detection (Sales Monitoring)  Revenue Collection (Sales Accruals)  Revenue Retention (Sales Force continuum) Planning, direction and control of personal selling including recruiting, selecting, training, equipping, assigning, supervising, compensating and motivating as these tasks apply to the personal sales force.
  • 4. Sales Organisation determinants  Type of Market  Geographic and Demographics  (Pharma, FMCG sales)  Type of Product  Consumer Products  Customer Products  Industrial Products
  • 5. Sales organization  With various tasks required to be performed the enterprise had to create a structure to ensure that work is done.  Principles of structure: authority, responsibility, performance, support/co- ordinate.
  • 6. Purpose of organization  Eliminate waste of effort  Minimize friction  Maximize co-operation  Permit development of specialists  Define authority  Fix responsibility
  • 7. Types of organization structures  Line organization: line managers perform sales and sales management activities.  Functional organization: focus is on the principle of specialization. Each specialist has a functional responsibility and are permitted to direct and control the salesperson thru their immediate superior.
  • 8. Line Sales Organization structure Head –Marketing Sales Manager Area Sales Mgr Area Sales Mgr Area Sales Mgr Area Sales Mgr Sales Force Sales Force Sales Force Sales Force Clear authority & Responsibility Quick response & Decision, Low Cost Weak on marketing inputs Sales manager controlled
  • 9. Functional Sales Organization Administrative Simplicity Access to Specialists Multiple reporting HOD is Pressures to co-ordinate
  • 10. The sales budget  A budget is a quantitative expression of plans. Most well managed enterprises use a budget which is a comprehensive and coordinated plan for the operations and resources of the enterprise.  It is a formal and intricate process  Approaches are either incremental or zero based.  In a volatile economic climate organizations estimate optimistic, realistic and pessimistic scenarios. To the sales department, the budget is a blue print for making sales. It involves money invested in distribution facilities, promotion efforts, and sales personnel. It is the foundation on which to plan sales objectives and the means of achieving them during the coming year.
  • 11. Sales budget Critical factors considered: 1. past trends 2. Sales force estimates 3. Trade prospects 4. Present scenario 5. Customers: existing and potential 6. Government policies 7. Industry environment
  • 12. Number of sales people  Decision on the size of the sales force is very complicated because structure of the customers vary in each territory, the level of competition varies across territories, the connectivity for travel varies etc.  There are 3 generally accepted approaches: affordability, incremental and workload methods.
  • 13. Sales Force Recruitment TYPES OF SALES GUYS  Dog – Smells the business  Elephant – Pounds everyone around  Shark – Screws up Competition  Giraffe – Over the top LOOK AT THE OBJECTIVE AND PICK PEOPLE Quality v/s Loyalty Growth v/s Incentives Partner v/s Employee
  • 14. Recruitment Sources  Competition  Referrals  Staffing Agencies  Friends and Families
  • 15. Sales Training  SHARE YOUR DREAM – Vision Illustratiion  SHARE YOUR PLANS  SHARE YOUR PRODUCTS  SHARE YOUR CHARTS  BUILD HIS DREAMS – Incentives  BUILD HIS CAREER – Organisation Chart  BUILD HIS CHARACTER – interest in his personal space
  • 16. Sales Segmentation Types ….  Geographic Territory (FMCG)  Product Territory (pharma)  Functional Territory (industrial products) Define Sales Territories to….  Increase / improve customer coverage  Control selling expenses  Effective evaluation of salesman’s performance.  improve customer relations A sales territory consists of existing and potential customers assigned to a sales person. The territory may or may not have geographic boundaries.
  • 17. Sales Target Setting WHY….  To help management motivate sales people.  To direct sales people where to put there efforts.  To provide standards of performance evaluation  S-specific  M-measurable  A-achievable  R-realistic  Value Targets  T-time bound  Volume Targets  Product Targets  Client/Account Targets  Market Share Targets Targets are quantitative goals assigned to individual sales persons for a specified period of time.
  • 18. Sales Force Motivation Drive to initiate an action. The intensity of effort in an action Why motivation The persistence of effort over  Frequent rejection  Physical separation from company support  Direct influence on quality of sales presentation  Indirect influence on performance
  • 19. Sales force motivation  “the desire to make an effort to fulfill a need is motivation”  Motivation includes three dimensions: Direction, Intensity and persistence.  Motivation may also be Intrinsic or extrinsic
  • 20. Maslow’s theory Intense job challenge, full potential, FULL EXPRESSION, creative expansion. Self Actualisation respect, recognition, prestige, Esteem needs independence, attention, IMPORTANCE, Belonging, ACCEPTANCE, love, Social needs affection, friendships. Safety needs SECURITY, stability, dependency, protection Physiological needs Hunger, thirst, reproduction, shelter, clothing, air, REST. Food, clothing, shelter, health care
  • 21. Sales Monitoring  Annual Target Meetings  Monthly Review Meets  On Field Visits  Dealer/Client Feedback  Competition Reports
  • 22. Sales Force Retention  Incentivise  Recognise  Socialise  Apprise  Prioritise
  • 23. HAPPY SELLING “remember, money is not everything ………but its not short of everything”