Professional Documents
Culture Documents
Distribution
Management-
MR412
Semester IV, KIMDS
Sales Management- An
Introduction
• Sales- Evolution of sales Department
• Sales management- 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.
• Co.’s viewpoint
– Sales volume
– Contribution to profit
– Continuing growth
• Top management Marketing Management
Sales Management
• Objectives translated into Specific goals
Make sure Goals of Corporate conform to Sales & Marketing
initiative
• Relationship Selling
• Order taker (Response selling) • Inside order taker • Behind counter in a garment
shop
• Telemarketing salesperson takes • Pharma products’ orders from
orders over telephone nursing homes
• Outside order taker. Also • Food, clothing products’ orders
performs other tasks from retailers
• Order-getter (Creative, Problem- • Getting orders from existing and • Automobiles, refrigerators,
solving, Consultative selling) new household consumers insurance policies
• Getting orders from business • Software and business solutions
customers, by solving their
business and technology problems
Importance of Personal Selling and Sales
Management
• The only function / department in a company that
generates revenue / income
• The financial results of a firm depend on the
performance of the sales department / management
• Many salespeople are among the best paid people in
business
• It is one of the fastest and surest routes to the top
management
Roles and Skills of a Modern Sales Manager
District / Branch / Area Sales Managers First / Lower Level Sales Managers
Increase Enter export Identify the countries Marketing / sales head to get
sales volume markets relevant information
by 15 Decide distribution channels Negotiate and sign
percent agreements in 3-5 months
with intermediaries
• Global perspective
• Revolution in technology
• Customer relationship management (CRM)
• Salesforce diversity
• Team selling approach
• Managing multi-channels
• Ethical and social issues
• Sales professionalism
Linking Sales and Distribution Management
• Either sales management or distribution management
cannot exist, operate or perform without each other
• To achieve the sales goals of sales revenue and growth,
the sales management plans the strategy and action
plans (tactics), and the distribution management has
the role to execute these plans
• This will be illustrated by considering some sales
management actions and corresponding role of
distribution management (in the next slide), as well as
by discussing a few integrated cases given at the end of
the book
Role of Distribution Management for some of the
Sales Management Actions / Tasks
Sales Management Actions / Distribution Management Role
Tasks
Strategy for handling customer Prompt action at the customer interface level
complaints If the problem persists, involve senior sales and
service people
Five – stage model for household Eight – stage model for business
customers buyers
1. Problem / need recognition 1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
2. Information search / collection 4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
3. Evaluate alternatives 6. Evaluation and selection of
suppliers
4. Purchase decision 7. Selection of purchase order routine
5. Post – purchase behaviour 8. Performance feedback and post-
purchase evaluation
Buying Situations Faced By
Qualifying
• Companies qualify sales leads by contacting them by mail or
phone to find their interests (or needs) and financial capacity.
• Leads are categorized as: Hot, Warm, and Cool
Preapproach
• Information gathering about the prospect.
Sources of information: the Internet, industrial
directories, government publications, intermediaries,
etc.
• Precall planning
• Setting call objectives
• Tentative planning of sales strategy: which
products, features and benefits may meet the
customer needs
Approach
• Make an appointment to meet the prospect
• Make favourable first impression
• Select an approach technique:
• Introductory
• Customer benefit
• Product
• Question
• Praise
• The approach takes a few minutes of a call, but it
can make or break a sale
Presentation and Demonstration
Director
Sales Sales Director of Director of Sales
of
Manager personnel Sales Sales Manager
Sales
Product 1 Director promotion Analysis Product II
Training
Sales Sales
Personnel Personnel
Product I Product II
Product division of line authority
General Sales Manager
Manager Manager
Sales Manager Sales Director of
Manager Lumber Construction Mining Director of Sales
personnel Sales Promotion and
Product Industry Industry Industry
Director Sales
promotion Advertising
1 Sales Sales
Sales Director of
Sales Advertising
personnel Director Sales
Promotion Customer
Planning manager Relations
Director Manager
Marketing
Personal selling /
Strategy
sales strategy
Price
Marketing strategy
mix
strategy
(Short- Public relations &
term) Publicity strategy
Distribution
strategy
Direct marketing
strategy
Market Potential
Market Forecast
Market Minimum
Base C
(B) 1 B
B
C C C C
5 4 3 2
Physical Examination
• Objective is to find a physical problem that may prevent job
performance of an applicant
• Most companies want their prospective employees to undergo
physical examination
• Increasing number of firms ask applicant to complete the health
information form without seeing a medical doctor
Hiring Stage
• After completing selection process, a list of candidates to be hired is
made
• In hiring stage, two activities are performed:
(1) The company making the job offer
(2) Persuading the applicant to accept it
Socialisation Stage
• It is the process through which new salespeople learn values,
norms, attitudes, and behaviour of people working in the firm
• Socialisation process starts before the new salesperson accepts the
job offer and continues until the person is assimilated into the
company culture
• Assimilation is the second stage of socialisation process
• Companies have this process, in order to retain new salespeople
Key Learnings
• Methods available for deciding optimum salesforce size are: workload, sales
potential, and incremental
• Salesforce staffing process includes five stages: planning, recruiting,
selecting, hiring, socialisation
• Planning stage includes (1) establishing responsibilities, (2) deciding
number of salespeople needed, (3) profiling the type of salespeople
needed
• Recruitment stage consists of (a) finding sources of sales recruit, (b)
evaluating and selecting recruitment sources, (c) contacting
candidates
• Selection process consists of seven steps / tools: (1) screening
resumes, (2) application blank, (3) initial interview, (4) intensive
interview, (5) testing, (6) reference check, (7) physical examination
• Hiring stage includes (a) making the job offer, (b) persuading
applicant to accept it
• Socialisation stage is required to retain new salespeople