Welcome to Lectures on Sales Management

By Prof. V. K. Chhabra

India witnessing a consumer revolution Greater emphasis on Sales & Marketing Management

First Lecture: Introduction

Hard core Marketing & Sales Executives

Reliance Empire of Dhiru Bhai Ambani started his career as trader The global steel king( Laxmi Mittal) Chief of of Microsoft( Bill Gates) PepsiCo( CEO Indra Nooyi) Chief of Tata Empire ( Ratan Tata) Chief of of Infosys ( Narayana Murthy) Chief of of ICICI bank( K.V Kamath)

Think beyond 4 Ps
Product Place Price Promotion Planning(sales targets/ budgets) People(customers satisfaction) Personal selling(sales force selection/training/motivation /compensation) Profits with cost control measures Procurement(sourcing/purchasing) Positioning(brands/point of sale)

Prime minister of India (Dr. Manmohan Singh)

President of USA( Barack Obama)

Era of Marketing cum Sales

Sales management..

is choosing the target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value.

Marketing knowledge forms the basis of a sales strategy

Focused market Customer-centric orientation Well defined value proposition Alignment with key channel partners Integration of internal and external supply chain process. Coordination of relationship marketing activities by all departments (sales, marketing , communication, production, finance, HR etc)

SALES Management Team- LEVELS

CEO President Vice President of Marketing National Sales Leader Zone Sales Leader Regional Sales Leader District Sales Leader Assistant District Sales Leader Nonmanagerial Salespeople Sales Trainee Salesperson Key Account
To p S ale s L e ad e rs (S trate g ic )

Middle Sales Leaders (Tactical)

F irst-L e in S L ers ales ead (O eratio al) p n

Annual Pay for Sales Representatives and Sales Managers in USA

Sales & Marketing Entertainment Sector:10 Ps

Largest retailers

Market leaders: Showrooms of Maruti & Hero Honda

Sales & Marketing: Single brand retailers 10 Ps

Sales & Marketing : Fast food chain at Bandra: 10 Ps

Sales & Marketing : FMCG: 10 Ps

Sales & Marketing : Banks: 10 Ps

Sales & marketing : Industrial Products 10 Ps

Marketing Management: Major Activities

The Major Activities of the marketing management are:

Product planning( based on feedback from sales team)

Competitive pricing (cost control & profitability)

Distribution management( channel selection & product supply chain to reach the customers)

Promotion & marketing Communication

Customer relationship & servicing

Sales management

Sales Management: Def of American Marketing Association

Sales management is the planning, direction and control of

personal selling
including recruiting , selecting, equipping , assigning, supervising, paying and motivating as these tasks apply to personal sales force

THE SALES MANAGEMENT PROCESS & FUNCTIONS

Broad differentiating factors of Marketing & Sales approach

Marketing approach
1. Identifying markets
2. Develop products( technology) 3. Develop & maintain marketing systems
Pricing strategy Distribution strategy promotional strategy After sales service

Sales approach
1. Identifying and expanding customer base 2. Meet customers need of products 3. Develop & implement sales promotion efforts
Formulating effective sales team Emphasis on personal selling Setting sales targets Combating competition Handling objections

4. Ensure profitability & adequate ROI

4. Ensure profitability, control costs, margin on sales, return on time invested, inventory control, etc

Relationship Selling

Relationship (Consultative) Selling

A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

LO5

Key steps in selling process: Traditional vs. relationship selling

Three Basic Tasks of Retailing

21 st . century winners

Total quality - focused. Information technology based. Vision directed. Flatter and empowered. Customer driven. Flexible and adaptive. Time based. Innovative. Global. Networked.