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SALES MANAGEMENT
The only business function that
generates revenue.

Sales and Distribution Management-Sales


function

Sales and Distribution Strategy


Sales involves delivery and transfer of ownership
of the product or service to the customer
It forms the beginning of the latter part of the
supply chain post manufacture
Sales constitutes the direct and most intimate
contact of the firm makes with its customers
Sales is responsible for the fulfillment of the
promise made to the customer by its predecessor
function-marketing
While marketing is responsible for creation of a
customer, sales and after sales service are
responsible for servicing and retention of the
customers

sales management

Planning, direction and control of


personal selling including recruiting,
selecting, training, equipping,
assigning, supervising, compensating
and motivating as these tasks apply
to the personal sales force.

Role of Sales Management in Marketing

The larger concept of marketing is the creation,


servicing and retention of customers and markets
This comprises identifying customer wants,
designing and developing products/services to
meet these wants
Designing products, deciding initial
pricing,building awareness, persuasion-role of
marketing function
Sales role-Actual delivery of products/services to
the customer maximizing convenience and
ensuring satisfaction
Finally fulfilling the promise made to the
customer through sincere and effective after
sales service

Role of Sales Management

Marketing covers want identification and


development of appropriate
products/services
Sales involves transfer of ownership and
possession to the customer in exchange
for the price she pays
Retention of the customer takes place in
the after sales and customer service
part of the larger marketing chain

Role of Sales Management

Effective transfer of possession and


ownership to the customer
This has to be done in the right place,
right time and the right manner
Choice of channel members, deciding the
terms of engagement with channel
partners, Sales promotion and
merchandising are key responsibilities
Effective liaising with Marketing and
manufacturing are essential ingredients
for successful selling

Sales management

Management of the personal selling task.


Is there anything like impersonal selling
or non-personal selling?
Selling is an exchange transaction.
Exchange of Product or service for money
Money is the revenue or the earnings of
an enterprise often called turnover or
top line
Sales therefore is the only revenue
generating function in an enterprise.
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Objectives of sales
management
3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales cost of sales = gross margin.

Gross margin expenses =net profit.

Sales management:
evolution

Industrial Revolution 1760


Small home industries Large
scale manufacturing marketing
sales and sales support
Concept of hunters and farmers
The modern day sales manager is
both an administrator in-charge of
personal selling activity and a
member of the group that makes
marketing decisions of all types.
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Areas of Sales Management


Responsibilities

Forecasting of aggregate and product wise


sales, using past data and incorporating
current and future trends
Designing and managing the sales
workforce to meet the forecast and build
long term relations with associates
Decide on critical aspects of sales policy
including pricing, credit terms to
customers and settlement of claims
To closely liaise with After Sales service to
present a united customer care front to
associates and consumers

Nature and Importance of Sales


Management

Nature of SM can be explained by:


Its

integration with marketing management


Relationship selling
Varying sales responsibilities

Integration with Marketing management:


It is a part of marketing management and as such
sales planning should be integrated with marketing
planning
Marketing team consists of two basic goups-field selling
team/personal selling team who reside in territories
contacting the customers and head quarter marketing
team who perform support and service functions to
assist and help the sales people such as promotion,
marketing research, marketing logistics, customer
service and co-ordination
The real integration between the marketing and sales
team would take place if there is a harmonious
relationship which is built on understanding of
common goals.

Relationship selling:

Concentration is establishing relationships. Buyers and


sellers have some type of business relationships which
have a range or spectrum,
-Transactional R (Where customer is not contacted after
selling Ex:Selling moovie tickets
-Value-addedR (Where sales person understands the
current and future needs of the customer and meeting
these needs better than the competitors Ex: Maruti
Udyog Limited.
-Collaborative and Partnering R which are especially
more important in business to business marketing

Varying sales responsibilities and sales


positions:

Selling includes a variety of sales jobs which are entirely different


from one another. The six sales positions are:

Deliverer (Response selling-delivery of bread milk and newspapers

Order-taker (Response Selling-Sales representatives)

Sales-support people (Missionary selling people-Medical rep


calling doctors)

Technical sales support/sales engineer(Technical selling-Industries


like heavy machinery)

Demand creator or order getter (Creative selling-selling tangible


products like automobiles, refrigerators, televisions)

Solution Vendor (Business Selling-Computer hardware and


software systems, telecommunications)

Nature of Sales
Management

Its integration with marketing


management
HeadMarketin
g

ManagerPromotio
n

Manager
Market
Research

Manager
Sales

Manager
Market
Logistics

Manager
Customer
Service

Relationship Selling
Transactional
Relationship
Selling

Value added Collaborative


/ Relationship / Partnering
Selling
Relationship
Selling

/
/

Varying Sales Responsibilities / Positions /


Jobs
Sales Position

Brief Description

Examples

Delivery salesperson

Delivery of products to business Milk, newspapers to households


customers or households.
Also takes orders.
Soft drinks, bread to retail stores.

Order taker (Response selling)

Inside order taker

Sales support
Missionary selling
Technical selling

Provide information, build Medical reps. in pharma industry


goodwill, introduce new products
Technical information, assistance Steel, Chemical industries

Behind counter in a garment shop


Pharma products orders from
Telemarketing salesperson takes nursing homes
orders over telephone
Food, clothing products orders
Outside order taker. Also from retailers
performs other tasks

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
Some of the important roles of the modern
sales manager are:

A member of the strategic management team


A member of the corporate team to achieve
objectives
A team leader, working with salespeople
Managing multiple sales / marketing channels
Using latest technologies (like CRM) to build
superior buyer-seller relationships
Continually updating information on changes in
marketing environment

Skills of a Successful Sales


Manager

People skills include abilities to


motivate,
lead,
communicate,
coordinate, team-oriented relationship,
and mentoring
Managing skills consist of planning,
organizing, controlling and decision
making
Technical skills include training, selling,
negotiating, problem-solving, and use of
computers

Types of Sales Managers / Levels


of Sales Management Positions
CEO /
President
V. P. Sales /
V. P. Marketing
National Sales Manager

Top-Level Sales
Managers / Leaders

Middle-Level Sales Managers


Regional / Zonal / Divisional Sales Managers

District / Branch / Area Sales Managers

First / Lower Level Sales


Managers

Sales Trainee / Sales Person / Sales Representative

Sales Objectives, Strategies and


Tactics

The main components of planning in a


company are objectives, strategies and
tactics. Their relationship is shown below
Decide / Set
Objectives

Develop Strategies

Evolve Tactics /
Action Plans

E.G. A company wants to increase sales of


electric motors by 15 percent, as one of the
sales objectives. (see next slide)

To illustrate the relationship between sales


objectives, strategies and tactics, consider:
Sales Goals /
Objectives

Increase
sales volume
by 15
percent

Marketing
Strategy

Sales and Distribution Strategy

Enter export
markets

Penetrate
existing
domestic
markets

Tactics /
Action plans

Identify the countries

Decide distribution channels

Review
and
improve
salesforce training, motivation
and compensation
Use effective and efficient
channels

Marketing / sales head to get


relevant information
Negotiate
and
sign
agreements in 3-5 months
with intermediaries

Add channels and members


Train
salespeople
in
deficient areas
Train field salesmanagers in
effective supervision
Link sales volume quotas to
the incentive scheme of the
compensation plan

Buying Situations
Three Types of Buying Situations
1. Straight rebuy
buying again the same thing
2. Modified rebuy
change in supplier..or product in order to reduce
cost or improve quality
3. New task
planning to buy something new..new products.,
suppliers

Selling Strategy
New Task
Monitor changes in
customer needs; respond
quickly when problems
and new needs arise;
provide technical
information.

Modified Rebuy
Act immediately when
problems arise.

Suggest new approach for Respond more quickly than


solving problems; provide present supplier when
technical advice.
problems arise; encourage
customer to consider an
alternative; present
information on how new
alternative will increase
efficiency.

Straight Rebuy
Reinforce relationship
with customers; make
sure all of the customers
needs are satisfied.

Convince customer of
potential benefits from
reexamining choice of
supplier; secure
recognition and approval
as alternative supplier.

Emerging Trends in Sales


Management
Global perspective
Revolution in technology
Customer relationship management (CRM)
Salesforce diversity
Team selling approach
Managing multi-channels
Ethical and social issues
Sales professionalism
Get the notes below:

Changing trends in SM
through a diagram

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 /


Tasks

Distribution Management Role

Strategy for effective coverage


of markets and outlets

Follow call plan / beat plan


Make customer call productive
Use multi-channel approach

Strategy for handling customer


complaints

Prompt action at the customer interface level


If the problem persists, involve senior sales
and service people

Planning of local advertising


and sales promotion

Co-ordination with distribution channels


Responsibility of execution with distribution
channels
Expenses are shared between the company and
intermediaries