Sales management

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Sales Management
The Process of Planning, Organizing, controlling, and
evaluating, the activities of Sales Force.
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.
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.”
Sales Management
Planning/Direction/Control
Personal Selling Activities
Sales Force
Management
Other Sales Functions
Sales Effort
Sales Goals
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
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.
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.
Evaluation and Control
The evaluation phase involves developing methods for monitoring and
evaluating the performance of the sales force.
Objectives of Sales Management
Objectives of Sales Management
Sales management objectives are categorized into two types:
1. Quantitative Objectives (Short-term)
2. Qualitative Objectives (Long-term)
Objectives of Sales Management
Quantitative Objective
(Short-Term)
Qualitative Objective
(Long-Term)
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.
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.
Sales Management Functions
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
Different Sales Management Functions are:
1. Managerial functions
2. Staff functions
3. Advisory functions
4. Liaison Functions
Managerial Functions
Managerial Functions
● Planning
● Organizing
● Direction
● Control
● Coordination
Managerial
Functions
Planning
● Forecasting Demand
● Sales Territory Planning
● Personal Selling
● Promotional Efforts
Managerial
Functions
Organizing
● Structure
● Resource Collection
● Responsibility Assignment
● Delegation of Authority
Managerial
Functions
Direction
● Leadership
● Motivation
● Communication
● Promotional Steps Including
Personal Selling
Managerial
Functions
Control
● Delegation
● Quota Fixing
● Performance Evaluation
● Incentives
● Budget
Managerial
Functions
Coordination
● Liaison
● Integration of various
elements internally
● Public Relation
● Creating Goodwill
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
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.
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
Sales Management Cycle
Sales Management Cycle
● Analysis
● Planning
● Organization
● Direction
● Control
Sales Management Cycle
Analysis
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.
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.
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.
Sales Management
Cycle
Direction
It involves proper supervision and
implementation of the plans with
the help of proper
communication, motivation and
leadership.
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.
Importance of Sales Management
Importance of Sales Management
Society
Business
Firms
Consumers
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.
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.
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.
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.
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.
Responsibilities of Sales Manager
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.
Thank You for Your Attention!
1 de 46

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Sales management

  • 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.”
  • 4. Sales Management Planning/Direction/Control Personal Selling Activities Sales Force Management Other Sales Functions Sales Effort Sales Goals
  • 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.
  • 6. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Ipsum dolor sit amet elit, sed do eiusmod tempor. 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.
  • 10. Objectives of Sales Management
  • 11. Objectives of Sales Management Sales management objectives are categorized into two types: 1. Quantitative Objectives (Short-term) 2. Qualitative Objectives (Long-term)
  • 12. Objectives of Sales Management Quantitative Objective (Short-Term) Qualitative Objective (Long-Term)
  • 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.
  • 17. Vestibulum congue tempus lorem ipsum nec dolor Lorem ipsum dolor sit amet, dolor at consectetur adipiscing elit, sed do eiusmod tempor. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Sales Management Functions Staff Managerial Advisory LIAISON
  • 18. Different Sales Management Functions are: 1. Managerial functions 2. Staff functions 3. Advisory functions 4. Liaison Functions
  • 20. Managerial Functions ● Planning ● Organizing ● Direction ● Control ● Coordination
  • 21. Managerial Functions Planning ● Forecasting Demand ● Sales Territory Planning ● Personal Selling ● Promotional Efforts
  • 22. Managerial Functions Organizing ● Structure ● Resource Collection ● Responsibility Assignment ● Delegation of Authority
  • 23. Managerial Functions Direction ● Leadership ● Motivation ● Communication ● Promotional Steps Including Personal Selling
  • 24. Managerial Functions Control ● Delegation ● Quota Fixing ● Performance Evaluation ● Incentives ● Budget
  • 25. Managerial Functions Coordination ● Liaison ● Integration of various elements internally ● Public Relation ● Creating Goodwill
  • 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
  • 30. Sales Management Cycle ● Analysis ● Planning ● Organization ● Direction ● Control
  • 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.
  • 35. Sales Management Cycle Direction It involves proper supervision and implementation of the plans with the help of proper communication, motivation and leadership.
  • 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.
  • 37. Importance of Sales Management
  • 38. Importance of Sales Management Society Business Firms Consumers
  • 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.
  • 46. Thank You for Your Attention!