UNIT - I

Nature and Scope of Sales Management

WHAT IS SALES MANAGEMENT?

Sales management is the attainment of sales force goals in an effective and efficient manner through:

Planning
Staffing Training

Leading
Controlling organizational resources

Sales Management Functions

PLANNING
The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.

Sales Management Functions

STAFFING
Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.

Sales Management Functions

SALES TRAINING
The effort put forth by an employer to provide the salesperson jobrelated culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.

Sales Management Functions

LEADING
The ability to influence other people toward the attainment of objectives.

Sales Management Functions

CONTROLLING
Monitoring sales personnels activities, determining whether the organization is on target toward its goals, and making corrections as necessary.

Sales Management Functions

THE SYSTEMS VIEW OF AN ORGANIZATION

EXTERNAL ENVIRONMENT

Organization is a social system that is goal directed and has a deliberated structure.
Goal directed means an organization is designed to achieve some outcome.
Social means being made up of two or more people. Deliberated structure means the tasks are divided, and the responsibility for their performance is assigned to organization members.

SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

CEO President
Top Sales Leaders (Strategic)

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

Middle Sales Leaders (Tactical)

First-Line Sales Leaders (Operational)

A SALES PERSONNEL CAREER PATH

National Sales Mgr.
Zone Sales Manager Regional Sales Manager District Sales Manager Key Account Salesperson Salesperson

President Vice President of Marketing

Sales Trainee

What is personal selling? Personal selling involves the twoway flow of communication between a buyer and seller, often in a face-toface encounter, designed to influence a persons or groups purchase decision.

What is involved in sales management?

Sales management involves planning the selling program and implementing and controlling the personal selling effort of the firm. Sales management is the management of sales force

Comparing order takers with order getters

Nature of Personal Selling and Sales Management

Prior to industrial revolution Small organization Limited production Meant for local market Selling is not complex activity Manufacturing activity having more importance than selling activity

Nature of Personal Selling and Sales Management

Post industrial revolution Production is in massive scale Engage business people more Require to divorce ownership Given birth to corporate form Formation of separate department Expand market Requirement of channel of marketing

Scope of Personal Selling and Sales Management

It is a art and science of selling It directs the sales force Objective is accomplished through salesmanship Selling happens almost everywhere Personal selling in marketing Creating customer value through salespeople: Relationship Selling

How salespeople create value for customers

Sales management function

Selection of sales force Training of sales force Motivating of sales force Controlling of sales force

Corporate objectives of sales management

Sales volume

Profitability

Growth

Role of sales force

Geography away from headquarter Isolation own in the field Task operation in social setting Vision Keep on eye in market Market focus, product knowledge Clear guidelines to customer Work actively in good team Should be motivated to work Good communication Sales excellence and leadership Innovation Ambassador for company

Place of personal selling

Marketing

Product

Promotion

Price

Place

Advertising

Sales promotion

Publicity & PR

Personal Selling

Special Characteristics of Salesman

Salesman is an ambassador of his company Salesman is out in the field Human relation skill is more important Authorize to spend companies money Can not enjoy family life

Types of selling job

Just delivery Order takers Missionaries Sales engineers Creative selling

Personal selling objectives

To service existing customers To get new customers To carry out the selling task entirely To help the trade sell the companys product line To make the customer aware of our marketing strategy To act as technical consultant for complex products To provide feedback to the company To help the middlemens sales force To help the trade in their administrative problems

Sales forecasting
Sales Forecasting is the process of estimating what your businesss sales are going to be in the future. Integral part of business management Without a solid idea you cant manage your inventory or your cash flow or plan for growth The purpose is to provide information that you can use to make intelligent business decisions.

Five steps in the forecasting process

1. Determine the objectives of forecast. 2. Select the period over which the forecast will be made. 3. Select the forecasting approach you will use. 4. Gather the information to be used in the forecast. 5. Make the forecast.

Types forecast
1. Judgmental forecasts when good data are unavailable 2. Surveying according to possibility of buying 3. Composite of sales force opinions 4. Delphi technique 5. Panel of experts 6. Market testing 7. Extension of past history

Sales forecasting methods

The time series model Casual forecasting model

Evaluation of forecast
Evaluation of forecast based on certain assumptions as per competitive and marketing environment Determine forecast period in advance Continue the review Compare forecast against actual results Note the differences Adjust future figures

Thank you..