1. Sales Management
The Process of Planning, Organizing, controlling, and
evaluating, the activities of Sales Force.
2. What is Sales Management?
Sales management is simply management of an organization’s personal selling
function. Sales managers are involved in both the strategy (planning) and people
(implementation) aspects of personal selling, as well as in evaluating and
controlling personal selling activities. They must be able to deal effectively with
people in the personal selling function, with people in other functional areas in the
organization, and with people outside the organization, especially customers.
3. Other Definition of Sales Management.
American Marketing Association (AMA) define sales management 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“.
B.R. Canfield define Sales Management involves the direction and control of salesmen, sales
planning, budgeting, policymaking, coordination of marketing research, advertising, sales
promotion and merchandising and the integration in the marketing programme of all
business activities that contribute to the increased sales and profits.”
5. Sales Management Process
Sales Management Programme is formulated to respond effectively to an
organization’s environmental circumstances, and these must be consistent
with the businesses competitive and marketing strategies.
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Formulation
Of Strategic
Sales
Programme
Implementa
tion of
Sales
Programme
Evaluation
and
Control
Sales Management
Process
7. Formulation of Strategic Sales Programme
The strategic sales programme should consider the environmental factors
faced by the firm. It should organize and plan the company’s overall personal-
selling efforts and integrate these with the other elements of the firm’s
marketing strategy.
8. Implementation of Sales Programme
The implementation phase involves selecting appropriate sales personnel as
well as designing and implementing policies and procedures that will direct
their efforts towards the desired objectives.
9. Evaluation and Control
The evaluation phase involves developing methods for monitoring and
evaluating the performance of the sales force.
13. Quantitative Objective
1. To retain and capture market share.
2. To determine sales volume in ways that contribute to profitability.
3. To obtain new accounts of given types.
4. To keep personal expenses within specified limits.
5. To secure a targeted percentage of certain accounts of a business.
14. Qualitative Objective
1. To do the entire selling job.
2. To service existing accounts, (customers).
3. To search and maintain customer cooperation.
4. To assist the dealer in selling the product line.
5. To provide technical advice wherever necessary.
6. To assist in training of middleman’s sales personnel.
7. To provide advice and assist the middlemen.
8. To collect and report market information of interest and use to the
company management.
16. Sales Management Functions
Sales management is viewed as having a systematic relationship with each
other. All functions and activities are considered as a dynamic process,
composed of numerous interrelated parts, aiming to achieve the
organizational sales objectives.
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Sales
Management
Functions
Staff
Managerial
Advisory LIAISON
26. Sales Management
Functions
Staff Functions
1. Recruitment and Selection
2. Deployment and Evaluation
of Performance
3. Training and Development
4. Career Development
5. Compensation and Incentives
6. Motivation & Empowerment
27. Sales Management
Functions
Advisory Functions
1. Product attribute/quality
aspects
2. Pricing Policies
3. Promotional Steps
4. Personal selling Aspects
5. Distribution Policies &
Channel selection criteria
6. Advertisement Policies such
as Media Selection & Target
Audience
7. Transportation & Warehouse
Aspects.
28. Sales Management
Functions
LIAISON Functions
1. Production Department
2. Finance Department
3. Marketing Department
4. R & D Department
5. Distribution Network
6. After Sales Service
Department
32. Sales Management
Cycle
Analysis
This Involves probing into the
sales record of the company,
analysing the reports of sales
people, investigation of marketing
trends and other environmental
factors.
33. Sales Management
Cycle
Planning
It involves setting objectives of the
firm’s sales efforts, formulation of
sales strategies and policies in
order to achieve those objectives.
34. Sales Management
Cycle
Organisation
It involves the determination of
the structure of the sales force
and delegation of authority which
is supposed to be necessary to
achieve the organization’s
objective.
36. Sales Management
Cycle
Control
It involves the comparison of the
actual with the desired results,
finding out reasons for the
deviation and taking corrective
actions accordingly.
39. Importance of Sales Management (Society)
Society:
To the Society: If jobs are to be made available for all those, who want and
expect them, the economy must continuously expand its production of goods
and services.
Equally important here is the fact, that an economy needs individuals, to
sell what is produced. Through their persistent efforts to create and
stimulate demand, salespeople could be said to be the life and blood of a
productive economic system.
40. Importance of Sales Management (Consumers)
Consumers:
To the Consumers: Professional people know their product or service, its major uses,
limitations and benefits; which helps them to serve their customers, quite effectively.
For example, an insurance agent can analyze the hazards and risks that confront a client’s
business or home-situation, examine existing coverage and offer helpful advice, in order to
eliminate the gaps or overlaps in coverage, in addition to saving the client’s money.
The sales-engineers are qualified to analyze technical-problems, which may be confronting a
particular organization and they can give the right recommendations for developing efficient
operations.
41. Importance of Sales Management (Business Firms)
Business Firms:
To Business Firms: A business firm can be profitable only if its revenues
exceed its costs. The prime responsibility of the salespersons is to sell the
goods, produced by the organization, at a profit. Companies, salespeople and
customers are different levels in the marketing chain; and these stand to
benefit by sales activities.
42. Business Firms
The salesperson becomes an important source of field-intelligence by
providing important (and sometimes very crucial) information, about the
nature of competitive-activities, and also about the changing needs of
customers.
The financial results of a firm depend on the performance of the sales
department. Many salespeople are among the best-paid people in the
business. It is one of the fastest and surest routes to enter into the top
management bracket.
43. Difference between Sales and Marketing
Comparison Sales Marketing
Meaning Sales refers to the process of selling, whereby
product is offered for sale to the customer at a
certain prices and at a given period of time
Marketing is the understanding the
requirement of the customers in such a
way that whenever new product is
introduced, it sells itself.
Orientation Product-Oriented Customer-Oriented
Approach Fragmented Approach Integrated Approach
Focus Company Needs Market Needs
Related to Related to flow of goods to Customers Related to all of the activities which
facilitate flow of goods to customer
Duration Short-Term Long-Term
Relationship One-to-One One-to-Many
Aims at Profit maximization through sales
maximization
Profit maximization through increased
customer satisfaction and market share.
45. Responsibilities of Sales Manager
Sales management involves a number of responsibilities. It is the income-producing
division of a business.
The sales manager is responsible for:
1. Providing profit contribution.
2. Creating a proper image for the company and its products/services.
3. Achieving the sales targets of the organisation.
4. Satisfying customers and participating in marketing activities.
5. He/she is responsible to the customer and society for the continuing growth of
the organisation.