What is Sales Management – Evolution

The history of salesmanship is as old as human civilization. Paul Hermann described Bronze Age’s travelling
salesperson’s sample case. The salespeople used a wooden box, 26 inches long, containing, in specifically
hollowed compartments, axe, sword blades, buttons, etc.
The salespeople in the past were not held in high esteem by the society. The Roman meaning of the word
salesperson is ‘cheater’, and Mercury, the god of cunning and barter, was regarded as the patron deity of
merchants and traders. The business and trade of buying and selling goods flourished over centuries and centred
only on some specific cities of the world. India was a great destination for traders and resellers in the medieval
age for spices, carpets, jewellery, etc.
Many diverse races and religions entered our country with the travelling salespeople. Even the erstwhile colonial
rulers of India, the British, came to India for the purpose of expanding their business and trade, though
subsequently they satisfied their political interest. They ruled this country to protect their own business interests.
The first salespeople in the US were the yankee peddlers who carried clothing, spices, and household articles
from one part of the country to another part. In India they are called pheriwallahs. These pheriwallahs move
from village to village and sell sarees, dress materials, and spices mostly in the rural markets of India, because
rural housewives have lesser mobility than urban housewives. These people move from the manufacturing bases
of the country to different consumption centres in India.
The pack peddlers in India traded with the tribal Indians and exchanged knives, beads, and ornaments for furs,
spices, salt, and handicrafts. These people were viewed as shrewd, unprincipled tricksters who would not think
twice before practicing product and price manipulations for higher benefits. They sold coloured sugar water as
medicine and cheated people for smaller gains. In the beginning of the nineteenth century, these peddlers started
using horse-driven carts and wagons, and started stocking heavier goods.
They started storing goods such as furniture, weapons, ammunitions, food items, and grains. Some of these
wagon peddlers settled down in villages, and opened stores and trading posts. The community of Baniyas or the
trading caste in India has its origin in these settlers and store owners. The big retailers travelled to the nearest
cities to replenish their stocks and bought goods to resell in their localities.
Wholesalers and manufacturers hired greeters and drummers who would seek out and invite retailers to visit the
display of the owner. The drummers would meet the passengers from incoming trains and ship with great
fanfare to beat their competitors. In the next phase, the drummers started visiting the customer’s place of
business.
There were fewer than 1,000 travelling salespeople before 1860 in the US who were basically credit
investigators and took orders for goods. Their numbers increased as the pace and reach of industrial revolution
spread across continents.
The techniques of modern sales management and selling techniques were refined by John Henry Patterson,
widely known as the father of modern sales management. He ran the National Cash Registry. He asked his best
salespeople to demonstrate their sales techniques to other salespeople. The best sales approach was printed in a
sales primer and distributed to all the other salespeople to follow.
This is how the canned sales approach began. In addition to this, Mr Patterson assigned to his salespeople
exclusive territories and sales quotas in order to stretch their efforts. He arranged frequent sales meetings that
served the double purpose of training and socialization.
He also sent regular sales information on techniques of selling. Thomas J. Watson was trained by Mr Patterson
who later founded International Business Machines (IBM). Patterson was the pathfinder who showed the
strategy and skill required to transform a sales force into an effective workforce for generating sales and profits.
Today, the process of sales management has undergone numerous changes in terms of strategy, practice, and
technological adoption to achieve the desired sales goal. A salesperson is no longer an order taker or information
provider; rather he is viewed as a consultant to the customers.
Due to non-personal form of business and increasing distances between the manufacturers and customers, sales
organizations are now emphasizing more on quality consulting skills to solve the customers’ problems. The real
sales activity now is in retaining customers rather than just closing the sales. This relational approach has
changed the scope of sales management, and research has found that it costs five times more to register a new
customer than to sell a product or service to an existing customer.
As a pan of sales function, the managerial challenge is to improve the productivity and efficiency level of the
traditional sales force. But modern sales management is confronted with challenges that affect both productivity
and efficiency of its selling approach. In response, newer and better selling techniques and approaches are being
used, such as telemarketing, key account management, use of independent sales force, team selling, electronic
data interchange (EDI), and application of technology to provide information and services to the customers.
The domain of sales management has become multidisciplinary in which sales managers have to manage a
diverse workforce and complex technologies. Sales managers have to perform duties such as recruiting, training,
selecting, motivating, forecasting, controlling, and administering salespeople, while performing the primary
responsibility of revenue generation for the firms.
They have to manage and satisfy multiple stakeholders, such as customers, suppliers, sales representatives, and
top management with the objective of increasing sales and profitability. There are guiding principles and
concepts in the field of sales and marketing that shape the destiny of sales managers and the domain of
knowledge in sales management.

What is Sales Management – Meaning

Sales management is solely concerned with the direction and control of the sales force. Sales management refers
to the management of sales personnel, though sometimes, in a broader sense, it covers advertising, distribution,
pricing and product designing, all elements of marketing management.
The American Marketing Association has defined “sales management” as “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.”
It may be called sales force management. The management has manifold responsibilities. Controlling and
guiding the sales force is one of the important activities of management.
Sales management is related mainly to the management of the sales department which is an important
organizational unit of management. The sales force may communicate effectively with the other departments of
the company if it is a well-planned organization and has an appropriate distribution network.
Sales Management, Marketing & Marketing Management:
Sales management refers to the direction and control of salesmen. The planning, recruiting and selection,
training, organizing, supervision, compensating and coordinating of the sales force, all these come under sales
management. It is a part and parcel of marketing management.
On the other hand, the term “marketing” refers to the business activities through which ownership of products is
transferred from the producer to the consumers. The marketing problems are several and have been carefully
analyzed, described and interpreted so that producers and consumers alike may be benefited to the maximum
extent.
Consumers want to pay the lowest possible price while producers and middlemen or marketing men strive few
the maximum possible profit For this the cost of production is to be reduced considerably. Marketing includes
sales management as well as other important functions.
Marketing management refers to several activities of marketing, viz., pricing, promotion, physical distribution,
product and sales personnel management. Sales management, however, is mainly concerned with the sales
personnel management Marketing management is a broader term which covers sales management and marketing
functions.
The sales manager is a subordinate of the marketing manager. He advises the marketing manager on the areas of
sales force management in particular and on other marketing functions in general when specifically requested to
do so by the marketing manager.
“Sales management effort may be exerted in the direction of securing, maintaining, motivating, supervising,
evaluating and controlling an effective field sales force”. The modern concept of sales management revolves
around the development of human resources.

What is Sales Management – Definitions by American Marketing Association

Initially, sales management was equated with the sales force management. As time rolled on, sales management
became broader. Apart from the management of personal selling, it encompassed other marketing activities like
advertising, sales promotion, marketing research, physical distribution, pricing, merchandising and so on.

However, the comprehensive broad function later got labeled as marketing management.
Sales management came to be defined by AMA (American Marketing Association) as:
‘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.’
Sales management, according to the above definition, is the management of the sales force. This is a personnel
type function.
Sales management also organizes the selling effort. To do so, it creates a suitable organizational structure, with
an appropriate communication system.
Sales management interfaces with the distribution channels and the external public.
Sales management provides critical inputs for the key marketing decisions like budgeting, quotas and territory
management.
Sales management interfaces with other marketing functions while policies of these functions are being
formulated.
Different organisations have different type of needs for selling. Thus, a service organization like an insurance
company needs sales management as much as a manufacturing organization does. However, both of them
handle selling in different contexts.
Similarly, a retailer also needs selling. Event organizations not employing sales force of their own and
depending on ‘outside salespeople’ have sales problems unique to themselves.

What is Sales Management – Major Objectives: Achievement of Sales Volumes/Values, Contribution to

Profits, Growth in Sales and Growth in Market Share
Normally the top management finalises the qualitative objectives for the organization. Examples- Long term
growth, Industry leadership, new product introduction, excellent customer service, positive image among
customers and public, outstanding technical research.
These objectives are translated in to specific quantifiable objectives and passed on the Sales department for
execution. Sales Management coordinates with other functions within the organization i.e., distribution, product
management, marketing research, advertising and finance and external customers like distributors, dealers and
users for achievement of the sales objectives.
Major objectives of Sales Management are given below:
1. Achievement of Sales Volumes/Values
2. Contribution to Profits
3. Growth in Sales
4. Growth in Market Share
The Sales Manager is responsible for effective execution of sales plan through the sales executives. A few of the
important activities that contribute towards achievement of sales target, planned profits, growth in sales and
market share are given below-
1. Addition of new distributors and dealers in unrepresented market.
2. Extending field activities to new geographical areas.
3. Increase in sales from existing customers like dealers and direct consumers
4. Increase in sales of profitable products
5. Control of selling expenses
6. Receivable management
7. Improve sales forecasting accuracy and effective management of finished goods
8. Effective use of sales promotion schemes
9. Extend the use of excising products on new market segments
10. Training of sales force
11. Implementation or sales plan for the territory
12. Effective management of sales territory
What is Sales Management – Role
The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s selling
approach, of course, also highlights maintaining good customer relationship, managing the profitability of a
firm, managing customer complaints, and building brand value in the eyes of the customers.
Though the above statements give a simplistic view of sales management’s role in an organization, there are
complex processes, systems involving a whole set of principles, strategies, techniques, and personal skills to
cover different facets of the sales function. Today, enough books are available, covering various aspects of sales
—starting from books on sales management process to how-to-do-selling books.
In addition, there are books on personal selling and selling techniques too. The reason behind the growing
prominence of sales staff in the organizational context is that sales staff is one of the most vital contact points
with the customers. The other contact points can be ATMs, the Internet, and other technical sources, but the
most visible and important source of customer contact still remains the sales staff.
Even the best marketing programmes may fail if the sales staff is ineffective or they are improperly managed.
For many customers the sales staff represents the company and the impression it carries determines its fixture
business relations with the customers. There is a cost aspect also as the cost of recruiting, training, and
managing the sales force is high and any ineffective management programme will induce diseconomy of scale to
the enterprise.
The term ‘selling’ involves a variety of functions in different contexts and in different environments. There are
situations where a salesperson may have to perform the function of a delivery boy for a customer on a periodic
basis, while in case of an advertising agency, a salesperson may have to carry out creative functions as well.
The job of a sales manager is not only to organize sales but also to carry out man-management functions such as
guiding and leading a set of people to achieve sales targets. Therefore, the functions of a sales manager can be
classified into two- personal selling and sales management. Personal selling entails personal communication
between a seller and a buyer for the purpose of determining and satisfying the buyer’s current and latent needs.
It involves an individual salesperson or a sales team to establish and build a profitable and symbiotic
relationship with customers over time through multiple transaction cycles. In this process of building a
relationship, a salesperson must determine a buyer’s needs and influence or persuade the buyer to purchase his
product with the assurance that the product or service will satisfy the buyer more than the competitor’s products.
The incidence is on buyer as a transaction is analysed on the basis of economic value. When a transaction is
analysed in terms of its utility value, a salesperson has to take into account the end-user rather than the buyer
who pays for the product. The consumer is the ultimate end-user of the product. Sales management is more
strategic and of long-term consequence, as it involves planning, organizing, directing, and controlling of all the
selling activities of an organization.
Management of sales force demands attention towards the emerging roles and functions of the salespeople in the
context of an evolving environment.
This trend includes the level of integration of technology with sales function, the changes in the approaches to
selling, the evolution of the customers’ needs and expectations, and the composition of the sales force on the
basis of gender and qualifications.
The sales management function is carried out at different levels of a sales organization. Generally, at the lowest
level of the sales force is a sales representative or a sales executive and the next level is that of a sales manager
who handles 10—15 sales executives.
The area manager handles a few sales managers. A state manager handles sales at the state level, and all the area
managers work under him. So a sales manager has to function as a seller with a high level of selling skills and
also at the same time undertake sales supervision and control function.
As the level of hierarchy increases, more and more management functions get added on to the primary job of
selling. Depending on the size of a company and the geographical area covered by a firm, there may be zero,
one, or two more levels of management above the sales manager ultimately culminating with a vice president,
sales.
Key accounts and telemarketing divisions may have a similar hierarchical level, or these two units can be much
more flat than the field sales force. Salespeople at ground zero and level one and two are responsible for tactical
decision-making, such as planning calls and setting short- term quotas.
Sales organizations are increasingly becoming dependent on the sales force due to various reasons. Sales
managers at higher levels are responsible for strategic decisions, such as organizing the sales force, determining
the sales force compensation structure, forecasting long-term sales, and overall controlling of a sales
organization.
The role of a sales manager in an organization has become strategic and formidable. He/ she is looked at as a
combination of an accountant, a planner, a personnel manager, and a marketer at the same time. However,
his/her prime responsibility is to augment the sales force by augmenting the sales closing process.
The specific duties and responsibilities of a sales manager can be summarized as:
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 plan and control systems
7. Designing career growth plans and building relationship strategies with key customers

What is Sales Management – Importance of Learning Sales Management

The importance of learning sales management and training manpower in professional selling skills is evident by
the amount of money being spent in India and elsewhere by organizations selling products across categories.
This change of thrust on learning sales management in a more scientific manner has occurred due to a number of
reasons.
These reasons include the relevance of the sales force in an organization as the primary contact point, the scope
for harnessing and improving the ability of selling through training and motivation, the potential rewards
involved in the sales career, and the probability of reducing the sales misconceptions through advanced learning
in sales management.
Personal selling is a more commonly used promotion method than advertising, public relations, or sales
promotion in business-to-business (B2B) marketing because it offers opportunity to a seller to match his/her
offerings to the customers’ requirements.
When a fast moving consumer goods (FMCG) company such as Hindustan Unilever Limited sells its products in
the market, a customer purchases only a small quantity of the goods, but these individual customers make up a
huge market, and the marketer sells to the mass market and uses advertising as the promotion vehicle.
There is no need to customize the products in case of FMCG and mass marketing too restricts the scope of
customizing the products according to each customer’s needs. On the other hand, when a salesperson sells a
computer, he makes a number of calls to the buyers to understand their requirements, and then he selects the
computer that will best suit their needs. In most industrial markets, personal selling comprises the majority of
the promotional budget and is a significant part of the overall budget.
One of the primary advantages of personal selling is that customers consider a salesperson as the company
selling the product. The impressions and satisfaction level derived by a customer from his/her dealings with a
salesperson largely decide the fate of the sales call and the size of the order.
If a salesperson is well prepared, organized in his selling approach, knowledgeable about not only his own
products but also the competitors’ products, and has the ability to be a problem- solver for the custom, he will be
able to build positive impressions in the customers’ minds about the firm and create an overall positive image of
the firm.
A salesperson devoid of proper sales skills and ignorant about market information always creates a negative
image of a firm despite the firm having a superior product in the market. The focus of sales management should
therefore be on identifying, grooming, leading, and motivating a set of trained salespeople to achieve higher
sales and create positive impression about the firm.
With the advent of Internet technology and Web-based platforms for interaction with customers, personal selling
has become a method of marketing communication which fosters personalized and interactive dialogue with
customers. This personal approach provides an organization with the best opportunity to become a truly
customer-oriented company.

What is Sales Management – Process

The sales management process in any organization involves three interrelated and dynamic set of decisions and
processes. Sales management is the process of attaining sales force goals in an effective and efficient manner
through planning, staffing, training, leading, and controlling organizational resources.
Any organization with a substantial sales force needs to plan and manage the sales management process and
accomplish goals through resource utilization and people management.
The sales management process covers three interrelated steps—formulation of a strategic sales programmes,
implementation of the strategic sales programme, and evaluation and control of sales force performance.

Formulation of a Strategic Sales Management Programme:

This is the beginning of a scientifically designed sales management programme. The sales planner must take
into account the influences and constraints imposed by the external environment. The demands of the potential
customers and the strategic moves of competitors are two important external environmental factors that a sales
manager should take into account.
The other environmental issues taken into account include the legal and political environment, social and
cultural environment, the technological and natural environment, and the prevailing economic environment. The
organizational environmental factors help in determining the nature of a sales programme.
Human and financial resources, the level of capacity utilization, and the innovation cycles prevailing in the
environments can help and decide a company’s ability to pursue particular types of strategies such as staying in
the same market or expanding the market.
There are five key decisions that a sales manager needs to take at this stage:
1. The sales manager should decide on how the personal selling efforts can best be dovetailed to the company’s
environment and integrated with other elements of the marketing strategy. This decision is set to explain the
firm’s personal selling strategy.
2. The next decision is to find out and decide in what way the potential customers can best be approached,
persuaded, and serviced. This means deciding the kind of account management policies the firm should adopt.
This is essentially the decision related to sales approach.
3. The third decision is the organization of the sales force to call and manage various types of customers as
effectively and efficiently as possible. This is related to the design of sales organization suitable to the market.
4. The fourth decision is related to the level of performance each member of the sales force is expected to attain
during the planning period under consideration. This involves decisions related to forecasts, quota, and budget-
setting.
5. The fifth decision is related to the deployment of the firm’s sales force in the light of the account management
policy and demand forecasts. The decision involves deciding on the sales territories and allocation of these
territories to the salespeople.
A sales programme must be carefully integrated with other marketing strategies. Personal selling is only one of
the tools of sales promotion strategy, which is a part of the core marketing strategy.
The sales manager should decide what kind of sales promotion strategy the firm should pursue in view of the
firm’s product offerings, competition in the market, the available distribution strategy, and the prevailing pricing
policy. These decisions will influence the personal selling objectives and organizational deployment of
resources to personal selling efforts.

What is Sales Management – Implementation of a Strategic Sales Management Programme

Implementation of the strategic sales management programme involves motivating people and directing their
efforts and energy towards the achievement of the corporate goals. A sales manager needs to understand the
reasons behind the behaviour of people and their level of commitment towards the organizational goals. There
are five factors that influence the job performance and behaviour of salespeople.
The ability of the salespeople to achieve the desired level of outcome is always influenced by the environment in
which they operate. On many occasions their job behaviour is influenced and sometimes constrained by the
environmental factors such as the situation in the market, the level of competition, the market demand for the
category, and the condition of the economy in providing consumption power to the end-users.
In many situations, the condition of the economy influences the organizations so much that their demand pattern
is moderated by the end-user demand. In organizational selling, the demand of the secondary industry is
influenced by the income level and purchase intent of the end consumers, hence affecting the sales performance
level of the sales staff in the primary industry.
Other elements of the marketing mix, such as the perceived quality of the product, the pricing policy followed in
the market, and the level of promotional support, also influence the sales performance of the people in an
organization.
A salesperson should be clear about his job profile and the methods he should follow to execute the desired role
in the organization. Any ambiguity in the job description and expectations and demands of other people from the
salesperson, within or outside the organization, may create role confusion.
A salesperson’s job is defined by the roles and expectations of the sales manager, the marketing manager, his
family members, and other employees in the organization. The salesperson’s ability to understand these roles
will decide his performance level. This is termed as role perception in the organization.
He has to face conflicting situations in the organization while executing his job. For example, he may have to
handle a customer who is very price sensitive and enjoys hard bargaining whereas the company policy may not
permit him to close the sale with a bargain. His ability to handle situations like this will decide his success level.
The performance of a salesperson is also influenced by his ability to perform the job. Personal characteristics,
personality traits, level of intelligence, and analytical ability to comprehend the selling situations will decide his
success level in the sales field. No matter how much a salesperson tries, he will not succeed unless he has an
aptitude for selling.
As different kinds of selling demands different kinds of role expectations, a person successful in a particular job
may fail in another role in the same or a different organization. Even when a salesperson has the aptitude to sell,
he may lack the skill required to carry out the specific job.
The salesperson should have adequate knowledge about the product market conditions, competitor product
information, and should also have the knowledge about and training of closing a sale through effective
presentation.
A mere commitment to the job may not bring a highly motivated sales force to the organization. The salespeople
should be motivated enough to stay committed to the job and contribute incessancy. A salesperson’s motivation
level is related to his expectations of rewards from the organization at different levels of performance and the
practice of rewarding people in the organization. People stay committed due to the expected rewards in financial
terms, job enrichments, or promotions.
Sales managers use various policies and procedures to influence the ability of a salesperson to sell more. They
can also influence the aptitude, skill levels, role perceptions, and motivation of the sales force.
Implementation of an effective sales management programme involves designing of policies and procedures to
recruit the right kind of people, training them and helping them acquire adequate skills to perform better, and
motivating them to achieve higher than their normal commitment levels.
The policies should be the guiding force in deciding what kind of job behaviour and performance is desired from
each salesperson and how they can be shaped and directed towards achieving organizational goals.
A sales manager should decide what kind of aptitude is required for performing the selling function and then
should go to develop the recruitment and selection criteria to ensure that the right kind of people with right
ability and capabilities are hired for the enterprise. A salesperson improves his skills and ability to sell by
practice and through experience.
But it is not prudent to leave him on the field to learn by trial and error as it may affect the company’s
reputation. Good companies develop training modules to train the new sales force before they go on the field. In
many companies, the salespeople are trained regularly to increase their knowledge regarding the emerging
global competition and the application of technology in the selling function.
Therefore, training is an ongoing process to upgrade the knowledge and skill level of the sales force. A sales
manager should decide what kind of selling skills and knowledge are required for selling the products, and then
design sales training programmes and introduce them for enhancing the efficiency level of the sales force.
After the training programmes are over, the sales staff needs to go and work in the field. In many instances they
face conflicting situations and need guidance in executing their duties. So in situations like these the sales
managers need to develop effective supervision policies and procedures so that the salespeople can obtain
advice and guidance from the management. A supervision policy should give enough freedom to the sale force
to apply creative selling skills in realizing a sale.
A salesperson’s level of motivation is a function of his intrinsic desire to be successful and the extrinsic desire to
obtain rewards from the organization for a given level of job performance. A sales manager should determine
what rewards are important and desirable by the sales force and develop motivational plans and compensation
mechanism to reward the successful salesperson.
A compensation programme involves financial and non-financial rewards. The non-financial rewards
programme includes recognition programmes, promotions to better territories or management positions, or
opportunities for personal development.

What is Sales Management – Emerging Trends in Sales Management

The field of sales management is changing according to the changes in the area of personal selling. These
emerging trends are affecting the business practices and orientations in the organizations.
The most important is the customer orientation in Indian organizations. Structures, systems, and processes are
designed around customers to give them high value products and services, deliver more satisfaction to the
customers, and retain customers for a longer period.
This proposition is completely different from the concept of transaction relationships in traditional sales
management. The traditional sales management was more product-driven, whereas modern sales management is
more oriented towards mapping customers’ needs and delivering products to satisfy customers’ needs. Service,
quality, and low cost have become customer expectations.
Buyers change suppliers more often if they are dissatisfied with the quality of support and service provided.
Brand loyalty is no longer assumed and salespeople must work hard to keep a hold on their customer base. If an
organization wants to remain in business for a long time, it must practice it while providing high quality goods
or services.
Customer orientation requires a higher level of commitment from sales resources to ensure that customer needs
and wants are met satisfactorily. This added commitment means that resources must be stretched or new
methods of sales effort and services be found.
This kind of customer orientation demands exploring newer methods and techniques of selling. The traditional
selling process of individual salesperson calling on an individual buyer is fast disappearing in many industries. It
is observed that in the late 1980s and 1990s, many organizations started using non-traditional methods of selling
such as telemarketing, key accounts management, part-time sales force, team selling, and Web-based e-selling
techniques.
A company such as Bazee(dot)com started selling through Web-based platforms whereas companies such as
Videocon used sales teams to make sales presentations.
In the industrial sector, software companies have turned to cross-functional selling for the sale of enterprise-
wide solutions. A cross-functional sales team comprises people across all the functions, such as sales,
marketing, finance, operations, and human resource, so that a holistic picture of customers’ problem can be
snapped and solutions can be developed for them.
A company such as priceline(dot)com in the US uses a Web-based sales model and practices reverse auctioning
as a successful method of selling. In a traditional auction model, people quote high for a deal, whereas in
priceline(dot)com, the customers go for the lowest prices and a deal is struck by matching the offer of sale of the
customers.
This non-personal form of intermediation is found in many sectors such as hotel, travel, and airline industry in
the US. Companies such as Cummins Engineering also develop teams with sales and technical people as
members to take note of customers’ requirements and develop solutions or customize the product offer to match
customers’ problems.
The basic objective of reorienting the selling strategies is to build relationship with customers. This has changed
the selling process from transactional selling to relationship selling. It implies that the selling-buying process is
a continuous stream of transactions rather than a single business of exchange.
The long-term association between buyers and sellers becomes the focus of business with the customers. It is
observed that keeping a satisfied customer is more profitable than gaining a new customer.
The cost of acquiring a customer is increasing day by day, whereas if one is able to retain the profitable
customer, it has a unique advantage in business. Companies rely more on retaining customers than acquiring
new customers through a process of relationship selling and customer relationship management programmes.
Data from customer interactions are collected and mined to find out implications for customer decision-making,
and relationship programmes are built around the new found customer intelligence. Companies such as HCL
technologies in India appoint full-time employees at the client’s place for solving any problems relating to
computer, hardware.
GE and other leading players have opened back office operations in India to attend to customer complaints and
route them to appropriate channels for faster redressal through call centres and real-time interaction points on
the Web. Most of the Indian software companies also appoint sales and maintenance staff at clients’ project sites
to solve any immediate problem.
All these are part of relationship selling where the existing customer is taken care of in a better way and profits
are generated by retaining the customers. Many firms launch customer loyalty programmes such as the Jet
Airways programme on Extra Miles for the frequency flying customers. A relationship selling strategy demands
the sales staff to develop long-term relationships with their customers.
These relationships should be built across the enterprise and with a wide range of individuals within the buying
organization. This allows sellers to up-sale the newer and high-value products and cross-sell the other categories
to the same set of customers, thereby increasing the profitability out of each customer.
As we have observed, there is a need to collect a large amount of customer data and build models to forecast the
likely behaviour of customers. This forecasting has to be ably supported by faster design of solutions and faster
communication with the customers about the new product offerings.
Today’s enterprises are also undertaking unparalleled cost-cutting steps whereby the demand for information of
vendor’s cost structure is rising. Newer frontiers of emerging technology is not only solving the problems of the
traditional businessmen but also posing newer challenges to the salespeople.
Organizations are adopting technology and integrating their businesses across the enterprise so that all the
departments are aware about the changing need patterns of the customers and can gear up resource commitments
towards satisfying customers’ evolving needs. Probably no single variable has made such an immediate impact
on the sales world as has the changing world of technology.
Technology is having an impact in two ways- in terms of the selling function as a whole, and also in terms of the
performance of the selling function by an individual salesperson.
Newer technology has made it possible to automate the sales force. Organizations have integrated their
requirements with vendors and vendors also have adopted systems which are compatible to the enterprise-wide
solutions of their customers. So there is no need of a sales call to be made with the routine customers.
Technology has made the organizations aware about their customers’ need patterns, and supplies are fed into the
system as and when demand arises. This has reduced the role of the salesperson as an order taker.
These order cycles are linked to payment cycles also, whereby the cash is automatically transferred to the
seller’s account from the buyer’s account and there is no need for a follow-up to realize the sales proceeds. This
has directly reduced the cost of maintaining a back-up sales force for these routine activities.
The buyers are benefited as they get fresh shipments and their inventory carrying cost is lowered due to the
supplier’s attention to the needs of the buyers. Tata Motors has integrated around 56 suppliers to its automated
supply chain management system. Under this system, the vendors, with desired quality specifications, supply
uninterruptedly to the organizations and the receipts for them are automatically cash transferred.
Maruti has a sales automation process whereby all the dealer networks are linked to its production process at the
Gurgaon plant and the production of different types of cars are linked to the demand patterns in the marketplace.
This kind of flexible manufacturing system is possible due to the adoption of integrative technology. Companies
such as Archies and Hallmark use data derived from bar codes scanned at the check-out counters of retailers to
supply information to their salespeople.
This information allows the companies to supply the retailers with tailored displays and promotions designed for
the retailers’ customers based on their buying preferences. Pharma majors such as Torrent and Pfizer also use
technology to augment the job of their salespeople and manage the demands in the marketplace.
Another aspect of adoption of technology has been the way the salespeople perform their jobs. Many Indian
companies provide hardware support in the form of notebooks to their salespeople for data recording,
transmission, and retrieval for faster access to customer order information, price data, and bid specifications.
More and more salespeople can now work from their homes through computers, faxes, copiers, voicemails, and
cellular phones.
The Web-based technology has improved their virtual presence on the job in the form of faster reporting and
better information feed to the organization. The emerging wireless technology has brought another world order
in which the decisions on quotations, inventory level, supply cycles, and wait-in periods are taken on a real time
basis at the client site also.
The use of various networks such as www(dot)indianrailways(dot)com or www(dot)jetairways(dot)com and
similar websites help the salespeople to speed up the reservation process, send email to customers from home,
workplace, and while traveling, and access banking information about new products and services of competitors
from the websites. All these technological changes have improved the sales efficiency, and demand a different
pattern of selling professionalism unheard of in the past.
Business world is under a flux due to the emergence of new enterprises including virtual organizations. Sales
organizations are looking for diversity in experiences, background, culture, and frames of reference for their
sales personnel. Organizations must approach diversity in a serious way due to the diversity in culture, practice,
and rituals in India.
Organizations should have counselling programmes on gender awareness, cultural sensitivity, and disability
awareness to promote a harassment-free workplace. As the business is going global and the virtual organizations
have made it possible for the small firms to compete with large firms, a global, multicultural workforce is
emerging. This needs a radical attention to the way sales management practices including working hours and
travelling norms are decided.
The global and ethical issues strongly influence the sales management practices across the world. Various
legislations governing different countries influence the business decisions of enterprises. Hence, they guide the
business practices in different countries, which may pose different challenges to the salespeople in each of these
countries.
The global legislations such as the General Agreement on Trade and Tariff (GATT), the changes due to World
Trade Organization (WTO) pacts, and the emergence of legislations on environment make it binding for a sales
force to look at the emerging issues in the business world and take corrective actions for business success. The
growth in consumption in the emerging markets, such as China, India, and Malaysia, demands special attention
to be given to the structure, approach, and nature of sales force and selling techniques.
This has given a boost to international travel for the salespeople, and has increased competition in domestic as
well as international markets. As organizations have begun competing globally, the ethical issues and norms
conducting businesses have also emerged.
Maintaining a certain level of ethical norm is a part of responsible commercial success. According to Mr.
Mukesh Ambani, business in the new world is a place where you can earn profits and also better the living
conditions of the people by practicing the role of a responsible corporate citizen. There are ample cases of
bribery and cheating in the world of sales in Indian market and organizations are being blamed and ridiculed for
the misconduct in business.
Modi Xerox as a company was found bribing people for selling its office equipment and photocopiers in the
Indian market. Salespeople are now evaluated on the basis of ethical practices in realizing a sale. More and more
companies are now moving to an ethics-based corporate/ philosophy.
What is Sales Management – Sales Management and Control
Planning and control go hand-in-hand. Sales objectives are reviewed to examine where we stand today, how we
travelled up to this point, where we are headed to, and how to reach there. Sales plans are examined along with
the policies and procedures.
The control process starts by setting up performance standards. The actual performance is then measured. The
results are compared with the standards set. Variations are deeply examined. Lastly, corrective action is taken to
set the matter right. Sales objectives may have to be revised in the light of the feedback received.
In smaller organizations, the informal control works. As organizations grow in size, formal control is exercised.
The sales policies are put in black and white. Policies provide a permanent solution to recurrent problems. Sales
policies are subject to review in the light of the situation.
Sales volume is controlled by specifying how much we can sell in future. It serves as a standard. Sales budgets
extend control over sales volume to exercise control over margins and expenses. It takes the individual
territories as units for this exercise.
Sales control can be centralized or decentralized in an organization. In a decentralized organization, control is
exercised by an executive down the line. Higher executives are concerned with the overall policy or control just
by exception.

THE NATURE AND ROLE OF SALES MANAGEMENT

The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s selling
approach, of course, also highlights maintaining good customer relationship, managing the profitability of a firm,
managing customer complaints, and building brand value in the eyes of the customers.
Though the above statements give a simplistic view of sales management’s role in an organization, there
are complex processes, systems involving a whole set of principles, strategies, techniques, and personal skills to
cover different facets of the sales function.
The job of a sales manager is not only to organize sales but also to carry out man-management functions
such as guiding and leading a set of people to achieve sales targets. Therefore, the functions of a sales manager
can be classified into two aspects: personal selling and sales management. Personal selling entails personal
communication between a seller and a buyer for the purpose of determining and satisfying the buyer’s
current and latent needs.
It involves an individual salesperson or a sales team to establish and build a profitable and symbiotic
relationship with customers over time through multiple transaction cycles. In this process of building a
relationship, a salesperson must determine a buyer’s needs and influence or persuade the buyer to purchase his
product with the assurance that the product or service will satisfy the buyer more than the competitor’s products.
Sales organizations are increasingly becoming dependent on the sales force due to various reasons. Sales
managers at higher levels are responsible for strategic decisions, such as organizing the sales force, determining
the sales force compensation structure, forecasting long-term sales, and overall controlling of a sales
organization.
The role of a sales manager in an organization has become strategic and formidable. He/she is looked at as a
combination of an accountant, a planner, a personnel manager, and a marketer at the same time (Figure 1.3).
However, his/her prime responsibility is to augment the sales force by augmenting the sales closing process.
 Determining sales
force objectives
and goals Designing career growth
plans and building
Finalizing sales force relationship strategies
with key customers
organization, size,

territory, and quota

Duties and
Responsibilities of a
Sales Manager
Forecasting
and budgeting
sales
Designing
compensation plan
and control systems

Selecting, recruiting, Motivating and

and training the leading the
sales force sales force

FIGURE 1.3 Responsibilities of Sales Manager

Functions of the Sales Executive

Many sales executives get promoted into their positions because of their previous performances as salespersons.
In some companies, outstanding salespersons have an inside track when sales executives’ jobs are being filled.
The assumption is that outstanding salespersons will be outstanding sales executives. Nothing could be farther
from the truth. The sales executive’s job demands administrative skills much beyond those required of
salespeople. Personal-selling experience is not unimportant, as sales executives manage people who do personal
selling. But .personal-selling experience and outstanding personal-selling performance are two different things-
most companies can recount instances where an outstanding salesperson failed in a sales executive’s job.
Basically, the sales executive has two sets of functions: operating and planning.
The operating functions: include sales force management, handling relationships with personnel in other
company departments and with the trade (middlemen and/or customers), communicating and coordinating with
other marketing executives, and reporting to some superior executive (such as the marketing vice-president). In
addition, in some companies and fairly commonly in lower-level sales executive positions, the sales executive
sells some accounts personally (to keep a “hand in” and to keep abreast of current selling problems and
conditions).
The sales executive’s planning functions include those connected with the sales program, the sales
organization, and its control. The sales executive is responsible for setting personal-selling goals, for developing
sales programs de-signed to achieve these goals, for formulating sales policies and personal-selling strategies,
and for putting together plans for their implementation. Sales programs are put into effect through the sales
organization, and the sales executive is responsible for designing and shaping the sales organization, for staffing
it, for developing the skills of those who are part of it, and for providing leadership to it. Achievement of sales
departmental goals require_ controls over selling activities, sales volume, selling expenses, and the like. The
sales executive is responsible for these and related control activities.
The relative emphasis that sales executives give to the operating and planning functions varies with (1) the type
of products, (2) the-size of company, and (3) the type of supervisory organization. Customarily, sales executives
at all organizational levels devote more time and attention to sales force management than they do to any other
single activity.
The significance attached to operating and planning functions varies with the product.
 If the product is a consumer good, sales executive attaches the greatest importance to planning functions:
development of sales programs, coordination of personal selling with advertising, and building and
maintaining relationships with dealers and customers.
 If the product is an industrial good, sales executives attach the greatest importance to the operating
functions -managing and directing the sales force, making calls with salespeople, and selling personal
accounts. Consumer-goods sales managers, in general, spend more time on planning and less on
operating than do their counterparts in industrial- goods companies.
The amount of the sales executive’s time devoted to planning and operating functions is influenced by the size
of the sales organization. Sales executives in small companies spend less time on planning and more on
operating. As the size of the company increases, the sales executive devotes more time to planning and less to
operating.
Exerting important influences on the way sales executives them to carry out assigned tasks with minimum
supervision. Ability to delegate authority is a must. Effective executive’s select high-caliber subordinates and
provide them with authority to make decisions. Within existing policy limits, decisions are made by
subordinates; when an exception falling outside these limits occurs, the superior decides. The more capable the
subordinates, the wider policy limits can be and the more the superior’s time is freed for planning.

The Role of a Sales Executive: Responsibilities and Skills

A business's sales department contains both team and individual goals to help sell enough products and services
to make a profit. The sales executive oversees this area, ensuring the team stays educated and motivated so they
can reach their goals. Knowing their roles and responsibilities helps you decide if this is the right career for you.
In this article, we will discuss what sales executives do, what skills and qualities they need and examine a
sample job description.

What is a sales executive?

Sales executives, or sales managers, lead offices of sales associates who offer goods and services to customers.
Their primary function is to manage this team to create profits for their company. Sales executives identify
prospects, maintain customer relationships and identify ways to grow their sales figures.
The role of a sales executive
The role of a sales executive varies based on industry, but most share similar responsibilities. Because they often
manage a team of sales associates, sales executives might combine leadership responsibilities with sales
expertise to excel at their jobs. If you are considering a career as a sales executive, you might expect to perform
some of these duties:
Managing a team
Some sales managers may work independently in a sales department, but often they manage a team of sales
associates. The sales executive sets department goals for the team, individual quotas and timelines for achieving
these. It is important to provide frequent feedback, communicate any updates or changes and be available to
your team to answer questions.
Creating goals
Sales executives may receive department goals from their superiors or they may create goals themselves. Often
these are units to sell or dollar amounts. Each sales representative is responsible for achieving their own goals,
and the sales executive tracks the progress towards meeting these. You might also create professional
development goals for how people on the team can develop their skills. For example, you may require everyone
on the team to take one workshop a year on current best practices in sales.
Generating reports
Sales executives generate several reports. Depending on the industry, they might create conversion reports, sales
data, trends, length of sales cycles or lead ageing. They might use these reports to encourage or educate their
teams or to share with sales directors or other high-ranking employees. Generating reports requires basic
computer skills and the ability to interpret data to make adjustments for reaching your goals.
Researching markets
Market research is the sales executive's way to learn more about target markets, consumers and their
competition. In this role, you gather and interpret market data and might identify prospects for each member of
the team to cold-call. Research might also include consumer trends. This helps you forecast goals and see what
adjustments your company might make in response. For example, if the market primarily purchases email
software with video capabilities but your company does not have that yet, you might communicate this need to
the relevant teams.
Reviewing processes
More than monitoring the markets and sales departments, sales executives ensure their teams work efficiently
within their organisation. This includes identifying clear roles for team members, communicating to other
departments for needs and reviewing tools and systems to ensure the teams have the resources they need to
complete their job. You might also evaluate the sale process for individual associates from prospecting to
managing customer relationships to see if every step achieves the desired results.
Building relationships
Selling products to a customer is only the first step in maintaining a relationship. Sales managers call customers
to ensure their products matched their expectations, offer products that complement their previous purchases and
update them on product and company updates. You can create standard durations for associates to connect with
their customers to ensure the relationship is current.
For example, sales representatives might contact their customers two weeks after a purchase, then every six
months with a personal note. Consider asking for feedback, responding quickly and addressing their concerns to
build trust and maintain positive relationships.
Top five skills for a sales executive
Here are some of the top skills that successful sales managers have and that you may want to include in your job
description:
1. Analytical skills
Analytical skills are those required to collect and analyse information and problem-solve to make decisions.
Sales managers use their analytical skills to review data, identify the key pieces of information that are most
relevant, draw meaningful conclusions and identify actionable takeaways. For example, if a sales executive
notices fewer purchases from new customers in December, they may increase their up-selling goals to recover
any potential lost income.
2. Communication skills
Communication skills refer to someone's ability to give and receive information. Communication skills include
active listening, speaking clearly and concisely and observing body language and other nonverbal cues. Sales
managers communicate with the right people at the right time, effectively and accurately delivering information
using whatever medium they choose.
3. Interpersonal skills
Interpersonal skills are the soft skills that people rely on for interacting with others. They include a range of
behaviours and tactics, from communication and listening to attitude and collaboration. These skills are critical
for working as part of a sales team, keeping sales professionals on track and motivated and showing a genuine
passion for the team's goals. Sales managers must be able to work well with peers, leadership and direct reports.
4. Strategic planning
Strategic planning is the process of setting goals and identifying actions that a company can take to achieve
those goals. Sales managers must be able to gather evidence related to products and historical sales, determine
objectives necessary to achieve organisation-wide goals and identify the steps necessary to achieve those
objectives. Following these steps can help create an actionable plan that can help you achieve your revenue
goals and develop your strategic planning skills:
 Assess your current situation
 Identify your customers
 Identify any strengths, weaknesses, opportunities, and threats in the market
 Determine your strategy
 Define revenue targets
 Position your brand, products and services
 Define roles to execute
Following these steps can help create an actionable plan that can help you achieve your revenue goals and
develop your strategic planning skills.
5. Leadership skills
Leadership skills are critical for a sales manager to organise, manage and motivate a sales team. Leadership
includes several skills, including mentoring, team-building, delegating, trustworthiness and creativity.
Leadership skills also include the ability to give clear and constructive feedback to improve the skills of
individual sales professionals.
Other skills a sales executive might need include:
 Negotiation
 Basic math and business knowledge
 Computer and software skills
 Prospecting
 Storytelling
 Active listening
 Public speaking

Essential qualities for a sales executive

More than skills, qualities are traits and behaviours that can help you excel in a role. Some of the most important
qualities include:
 Dedicated: sales executives dedicate themselves to excelling in their role, achieving their goals and
supporting their team. Even if results differ from planned targets, the sales manager focuses on larger
goals and continuous improvement.
 Persuasive: Persuasion is important in sales because the primary goal is to sell enough products and
services for a company to earn a profit. In competitive markets, sales executives convince consumers
why their products are better than others and they educate sales associates on effective persuasion
methods.
 Motivating: Once the sales manager sets their team's goals, they motivate the sales associates until they
reach or exceed them. This can mean celebrating individual sales, rewarding outstanding results and
possibly introducing a low-stakes competition among the team.
 Patient: Patience means both listening to your customer's needs and understanding that sometimes
customers want to wait to make a purchase. It is important to judge the situation and work patiently as
building a lasting relationship can be more productive than a one-time sale.
 Resilient: Sales managers might face rejection, often in the early stages of prospecting. It is important
for you to understand that this is not necessarily a reflection on your character or your abilities as a
professional and that you must continue to motivate yourself.