“Sales management”

“Sales management” originally referred exclusively to the direction of sales force

personnel.

“Sales management” meant management of all marketing activities; including

advertising, sales promotion, marketing research, physical distribution, pricing & product
merchandising.

“Sales management” is attainment of an organization's sales goals in an effective &

efficient manner through planning, staffing, training, leading & controlling organizational
resources. Revenue, sales, and sources of funds fuel organizations and the management of
that process is the most important function.

“Sales Management is a systematic process involving:

(1) Formulation of sales strategy through development of account management policies,
sales force compensation policies, sales revenue forecasts, and sales plan,
(2) Implementation of sales strategy through selecting, training, motivating and supporting
the sales force, setting sales revenue targets, and
(3) Sales force management through development and implementation of sales
performance, monitoring, and evaluation methods, and analysis of associated behavioral
patterns and costs.

 Evolution of Sales Management

 Evolution of Personal selling
 Various concepts
 The Nature and Role of Sales mgmt
 The Importance of Sales mgmt

Basis for Designing a Sales Organization

 Mission and objectives of company
 Target market segment
 Core competence
 Organizational relationships
 Flexibility
 Organizational culture
 Size and type of sales force
 Terms of employment
 Staffing activity
 Compensation system
 Market orientation
 Technology
 Company size
Evolution of Sales Concept
 First generation (Exchange of goods)
  Second generation (Store concept)
 Third generation (Search of the customer started)
 Fourth generation (First step to systematic selling)
 Fifth generation (Need based selling)
 Sixth generation (Started in 1960)
 Seventh generation (Customer satisfaction came into picture)

Sales Management – Objectives

 Increase sales volume
 Contribute to profit
 Long-term growth of organization
 Improving the contribution to profit
 Attaining the long term growth in market

Responsibilities of a sales manager:

1. Determining sales force objectives and goals
2. Finalizing sales force organization, size, territory and quota.
3. Forecasting and budgeting sales.
4. Selecting, recruiting and training the sales force.
5. Motivating and leading the sales force.
6. Designing compensation plans and control systems.
7. Designing career growth plans and building relationship strategies with key
customers.
Types of personal selling
 Industrial selling
1. Selling to resellers E.g.: Hero cycles, T series
2. Selling to business users E g.: IBM
3. Institutional selling E.g.: Xerox photocopiers, Johnson and Johnson surgical
equipments
4. Selling to government E.g.: Escort Rites, Maruti Gypsy
 Retail selling E.g.: Shopper stop, Wal-Mart
 Services selling E.g.: Traveling, accommodations, Insurance