Sales management

• Modern sales executives are professionals.

They plan, build and maintain an effective and
efficient organization and design and utilize
appropriate control procedure.
• The professional approach requires careful
analysis of market situations, intelligent setting
of personnel selling objectives, choice of
appropriate sales policies and formulation of
personnel selling strategy.
• Evolution of the Sales Department –
1. Prior to industrial revolution.
2. After revolution.
3. Appearance of specialized sales dept.
4. Absence of direct communication with
customers.
5. Fragmentation of marketing activities.
( Advertising - market research - export - sales
promotion - merchandising - traffic and ship
-credit and collection)
• DEFINITION –

American Marketing Association.

"Sales management means "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"
• Objectives of Sales Management –

1. Achieving sufficient sales volumes.

2. Providing ample contribution to profits.
3. Experiencing continuing growth.

Sales - Cost of sales = gross margin

Gross margin – expenses = net profit
• SALES EXECUTIVE AS COORDINATOR –
A. Organization and co-ordination.
B. Planning and co-ordination.
C. Co-ordination with other elements of marketing
Program.
a. Co-ordination with Distributive network.
b. Gaining product distribution.
c. Obtaining dealer identification.
d. Reconciling business goals.
e. Sharing promotional risks.
D. Co-ordination and implementation of overall
marketing strategy.
E. Sales management and control.
a. Sizing up the situation.
b. Setting quantitative performance standards.
c. Gathering and processing data on actual performance.
d. Evaluation performance.
e. Action to correct contribution variations.
f. Adjusting for uncontrollable variation.
F. Sales – Control – Informal – Formal.
a. Formal control and written sales policies.
b. Policy formation and review.
c. Formal control over sales volume.
d. Budgetary control.
G. Sales control and organization.
• SALES MANAGEMENT, PERSONNEL
SELLING AND SALESMANSHIP –

Sales management, personnel selling and

salesmanship are all related. Sales management
manages the personnel selling effort return, is
implemented largely through salesmanship.