Sales Management

Initially sales management was equated with sales force management. As time went on the concept of sales management became broader. According to AMA The planning direction and control of personal selling including recruiting, selecting equipping, assigning, supervising paying and motivating of the sales force

SALES MANAGEMENT

defined as the management of a firms personal selling function while distribution is the management of the indirect selling effort i.e.selling through extra corporate organizations which form the distribution network of the firm. The sales management task thus includes analysis, planning, organizing, directing and controlling of the

EXCHANGE PROCESS

It is the sale and delivery of goods/services from the manufacturer to the consumer can be consummated directly i.e. by the firm itself through its own sales force or indirectly through a network of middleman such as wholesalers and retailers.

Essential tasks need to be performed in order to consummate successful exchange

Contact- finding and communicating with prospective

buyer

Prospecting- Bringing together the marketers offering

and the prospective buyer

Negotiation- Reaching an agreement on price and

other terms of the offer so that ownership and possession can be transferred.

Promotion- Of the marketers offerings, and his

satisfaction generating potential

Physical distribution- Actual transfer of

possession

Collection- Of relevant consumers information and

revenue in exchange of goods or services

Objectives of Sales Management

Corporate Objectives

Profitability

Sales Volume

Growth

Sales Management Model

Describing the Personal Selling Function
Defining the Strategic Role of the Sales Function Determining Sales Force Effectiveness and Performance

Developing the Sales Force

Directing the Sales Force

Sales Management Trends

Transactions Individuals Sales Volume Management Local Relationships Teams Sales Productivity Leadership Global

Interdependence of Sales and Distribution

All

organizations use their own sales force or distribution network to reach out to their customers. Activities of the sales organization would have to be coordinated with channel operations if sales goals have to be effectively realized.

Promotion and the AIDA Model

Promotion Objectives

Adoption Process

AIDA Model
Attention Interest Desire Action

Informing

Persuading

Awareness Interest Evaluation Trial Decision Confirmation

Reminding

}
Exhibit 14-4
14-9

RIGHT SET OF CIRCUMSTANCES THEORY

The advocates of this theory define that all the circumstances, which led to the sales were appropriate for the sales to have taken place. In other words, if the sales person is successful in securing the prospects attention, maintaining his interest and inducing his desire to buy the product, the sales will result. Moreover, if the sales person is highly skilled, he will take control of the presentation, which would lead to sales.

Buying Formula Theory

This theory emphasizes on the needs or problems of the buyer.The sales person assist the buyer in finding an appropriate solution to the problem.This solution may be in terms of a product or service. This theory is based on the analysis of the sequence of events that goes in the buyers mind during the sales presentation.

Key decision areas in Sales Management relevant to strategy formulation

Compensation Deciding upon type and quality of sales Performance appraisal personnel required Determination of the Feedback size of the sales force mechanism Organization of the Managing channel sales department relationship Territory design Coordination with Recruitment & training Marketing procedures department Task allocation

Strategic Formulation Process

Step1-Assessment of the competitive situation and the corporate goals to determine the output that sales management is expected to give. Step2-Define sales management objectives in terms of delivering these outputs both quantitative and qualitative.

Step3-Design sales strategy by deciding upon: type of sales effort required, type of sales personnel required, size of the sales force, territory design, channel support & coordination

Examples ofl Selling

Retail selling

Field selling
Telemarketing Inside selling

Characteristics of Personal Selling

Pro

Flexibility

Con Can not reach mass audience Expensive per contact Numerous calls needed to generate sale Labor intensive

Adapt to situations

Engage in dialog
Long term Assure buyers receive appropriate services

Builds Relationships

Types of Salespersons
ORDER
GETTERS Current customers

ORDER TAKERS
Inside Order Takers (via mail, telephone, internet) Outside Field Sales

SUPPORT PERSONNEL
Missionary Salespersons Trade Salespersons
Technical Salespersons

New
customers

 Sales people have many names

Agents Salespeople have many names

16-18

Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development

FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT

Pre approach: QUALIFYING PROSPECTS

PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

The Personal Selling Process

Roles of Selling
a. Identifying

decision makers, decision processes, and qualified buyers b. Promoting to corporate, travel trade, and other groups c. Generating increased sales at the point of purchase

 Providing detailed and up-todate information to the travel trade Maintaining a personal relationship with key clients Gathering information on competitors promotions

Functions of Sales Management

a. b.

c.

Sales-force staffing and operations Sales planning Sales performance evaluation

Contents of the Sales Plan

a. Sales

activities b. Sales objectives c. Sales budget

Roles of the Sales Plan

a. b. c.

Preparing sales forecasts Developing sales department budgets Assigning sales territories and

FIGURE 17-A How salespeople create value for customers

FIGURE 17-3 The sales management process

THE SALES MANAGEMENT PROCESS (cont.)

Sales Plan Implementation

Sales Force Evaluation

Input = activities and efforts Output = results

THE SALES MANAGEMENT PROCESS (cont.)

Sales Force Automation and Customer Relationship Management
Sales Force Automation

Sales Force Computerization

Sales Force Communication

Sales Force Automation

Salesforceautomation (SFA) is the use of technology to make the sales function more effective and efficient.

Sales Organisation
The

sales organisation divides an enterprise in the demand of the sales. The sales organisation is responsible for the sales of materials and services. The sales organisation is divided in distribution channels and divisions. Each sales organisation has its own entry range.

One sales organisation can be

Sales Organisation: Purpose

To

delegate authority and assign responsibility Achieving coordination and balance Authority from top dpwn to field level sales men

Setting up a sales organisation

Define

the objective Group the activities into jobs Recruit staff Provide for coordination and control

Types of Sales Organisations Line Function President Vise President Marketing Manager Marketing Manager South West SE ME Sales Officer MR

Tyes of Sales Organisation Line and Staff

Marketing Manager
Ti i g rn an M ae a dr n t

sl s a e M ae a gr n

Pdco r ui n o t M ae a gr n

Regional Sales Manager

Funtional Sales Organisation

General Manager Sales

M- Sales M-Training M-Territoty M-SP M -DIS

SR

SR

SR

SR

SR

How to Organise Field Force

Geographical

Organisatio Product Organisation Customer Organisation

Manpower Planning

Size

of The Sales Force----

---- Work Load Method Sales Potencial Method Incremental Method

Manpower Planning- Peesommel Management

Job Job Job Job Analysis Description Specification Evaluation Recruitment Seletion Training Performance Appraisal Companc\sation

Recruitment of Sales Personeel Sources Word of Mouth Sales Rep of Competing Companies Sales Rep of non Competing Companies Internal Transfers Campus Recruitments Placement Firms Advertisements

Selecting Sales Personeels Reception of Applicant Application Blank Interview Inspection of Past career Primary Selection Final Selection Medical Check

Sales Training Training Programmes involves Aim Identification of Training Needs Content Methods Execution Evaluation

Training Methods

On The Job Training Off the job training Conference method Case Study Role Play

Executive training and Development

thee attempt to improve management efficiency through a planned and delibrate learning process which seeks to develop in managers cirtain attribute, skills and knoeledge.

Training Execution and Evaluation

The training Philosophy

Training Organisation Site of the training method

Padagogy

Motivation and Morale of sales people

What is motivation
Motives of wants and goods Theories of motivation

Motivation towards goal directed behaviour

Compensation

Charectoristics of good compensation

Fairwage Integrated to the motivational progrrame

Equal pay for equal work

Easy to understand

Easy to administer

Job evaluation and compensation plan

Techniques of jobevaluation
Simple ranking Job grading

Point system

Controlling sales people:evaluation and supervision

Setting Standards
Measuring actual performances Objective of monitoring

Sales report
Comparison of standards set and actual performances

Sales Territories

Territory may represent

Geographical area Group of customers

A market
An industry

Goals of territory management

To cover the market properly

To deploy sales people effectively To service the customer effectively

To evaluate the sales representative

To control sales expenses

Territory Management

Generating New Accounts

Managing Existing Accounts

Personal Time Management

Sales and Marketing Information System

An organised way of continually gathering and analysing information from every source relevant to the organisation MIS consist of people, equipment, and procedures to gather, sort, analyse, evaluate and distribute needed information to the marketing decision makers A MIS incorporates & combine the main aspects of marketing research into a centralised management function which will maintain a tight control on research procedures & ensure an accurate data bank of information about customers, products etc. A MIS which can link external data with internal sources, such as sales record, customer records & competitor information will provide a strong basis for informed marketing decisions

MIS
MIS - mainly concerned with how to manage information Ongoing information eg sales record Monitored information - about the economy Requested information - Surveys

Marketing Information System 2

Developing Information -Involves obtaining the needed information for managers from different sources Internal data is secondary research already available within the organisation. This can come from -Accounting -Sales force -Marketing -Manufacturing