Sales, Distribution and Supply Chain Management
Introduction to Sales Management
Structure: 1.1 Introduction Objectives 1.2 Importance of Sales Management 1.3 Responsibilities of Sales Personnel 1.4 Sales Manager: Role and Skills Sales manager as sales coordinator Sales manager as controller Generating profits Sales manager skills Differences and similarities between a salesperson and a marketer 1.5 Developing a Sales Organization 1.6 Types of Sales Organizations Line and staff components Formal and informal organizations Horizontal and vertical organizations Centralized and decentralized organizations Formulation of sales organization 1.7 Linking Sales and Distribution Management 1.8 Interdependence of Sales and Distribution 1.9 Summary 1.10 Terminal Questions 1.11 Answers
Sales refer to the exchange of goods and services for an amount of money or its equivalent in kind. Sales play a vital role in any company as regards revenue generation. With the growing importance of sales, the concept of sales management has gained a lot of importance these days. Considering this, a well motivated and extremely efficient sales force is an important requirement. With the development of large business operations and an increase in the volumes of production, i.e. production on mass scale not only for local consumption but also to cater of the demand at national and
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Sales, Distribution and Supply Chain Management
global levels, the importance of sales management has increased considerably. As per the Definition given by Committee of the American Marketing Association, Sales management is defined 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, however, is concerned with the process of encouraging customers to exchange their funds for your services or goods. Effective sales management will help to capture newer markets, retain existing market share, determine profitable levels of sales volume and maintain the revenue earning capacity of the business. Objectives: This introductory unit on sales management will help you get familiar with the concept of sales management and other important aspects of sales. After studying this unit, you should be able to: Explain importance of sales management Discuss various responsibilities of sales personnel Discuss the types and skills of sales manager Identify various types of sales organization
1.2 Importance of Sales Management
Importance of sales management is critical for any organization. In present scenario, expanding business is not possible without increasing sales volumes and the goal of effective sales management is to organize sales team work in such a manner that ensures growing flow of regular customers and increasing amount of sales. Sales management entails: Defining desired corporate results. Working with business partners to ensure goals of both organizations complement one another. Determining the specific activities required to achieve company and partner objectives.
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not how many of them are purchasing from you. staffing. Tracking the point-of-sales information: Software used for sales tracking should allow sales team leaders to control sales tasks completion by using reminders and notifications. the people who didn't buy. Sales planning improve efficiency and decreases unfocused and uncoordinated activity within the sales process. Planning ensures that when a consumer wishes to purchase the product. as important. analyzing task history. would be better information. people. Sales tracking is an integral part of ongoing planning and development in sales management. 3
Sikkim Manipal University Page No. The most difficult part of tracking selling activities is ascertaining whether or not the activities can be tracked effectively and economically. highlighting overdue tasks. so many were out-bound phone sales. Sales planning involve predicting demand for the product and demand on the sales assets (machines. Establishing appropriate monitoring systems to ensure activities are taking place. Ideally. sales information should be gathered on the sales process and not on the end result. but the fact that so many were walk-ins. Providing training and coaching to enable salespeople to meet their goals. or a combination of both). Planning should allow for meeting increasing customer demand for more products. but it also means opportunities for additional sales are presented and the sales assets are available to exploit these opportunities. Measuring results by evaluating performances on a regular basis
Sales Management achieves the organization’s sales goals in an effective and efficient manner with the help of other management functions of planning. It includes how many customers you are able to reach. the product is available. The fact that you sold ten widgets is valuable for accounting purposes. Distribution and Supply Chain Management
Implementing a compensation plan that motivates salespeople to achieve corporate objectives. but also react quickly when demand decreases. Failure to plan always means lost sales. training. and so many were up-sells. and which sales person or asset did what. leading and controlling organizational resources. as well as keep detailed information on customers and.Sales. services and/or customization as the business is growing.
The salesperson is responsible for: Providing profit contribution Creating a proper image for the company and it's products/services Achieving the sales targets of the organization Satisfying the customers and participating in marketing activities
Sikkim Manipal University Page No. management must have measurable methods of knowing if sales representatives are correctly engaging in the activities that produce revenue. must be achieved along the way. Distribution and Supply Chain Management
Timely information: If your sales task management system is really great and duly implemented. Use of sales reports by internal and external customers: Sales report is made for internal use for top management. Self Assessment Questions 1. People who are responsible for the sales of either a single product or the entire range of an organization's products can be called sales personnel. In the end. as well as individual sales personnel. partners and government. the sales manager is informed about all details of your company’s sales process in real time and knows who does what. __________ is an integral part of ongoing planning and development in sales management. Increase in the __________ generate revenue for the company. 4
. so the sales management system should have advanced reporting capabilities to satisfy the needs of different stakeholders. are progressing through these “Transitional Milestones” to determine the likelihood of future revenue. or “Transitional Milestones”. The job of sales personnel involves a number of responsibilities. And sales reports are required for investors. 2. Sales management must collect data on how the sales function as a whole.Sales. An individual sale is a stepwise process and key activities. when and how. It is the income producing division of a business. This leads to three key metrics: the right activities.
1. Sales personnel normally report to a sales manager. the right way and the right amount.3 Responsibilities of Sales Personnel
Sales personnel They are the people employed to sell the goods or services (mainly of an organisation).
Irrespective of these opinions. Qualities of good sales personnel Sales people are the backbone of the organization because they have to face customer and interact with them. building sales organizations and managing them. he keeps his desk books and manuals neat and ready for use. including setting goals and achieving them. Distribution and Supply Chain Management
He/she is responsible to the customer and society for continuing growth of the organization. vision and the ability to create ideas make your man dynamic. Ltd. Creativeness: Imagination. He presents himself well in person. we will discuss qualities of a good sales person. salesmen are born salesmen. while others believe that training can help in making good salesmen. Business sense: He is quick to learn the strengths and weaknesses of the company and makes an effort to improvise on the company’s strengths. Courtesy: He reveals a sincere desire to help customers and treats them as guests even when he visits their places of business. Also. Philip Kotler has identified two basic qualities of a good sales person namely. good salesman has certain qualities and abilities as a result he is able to perform better than others.Sales.
For example. Some people say. Ambition: He likes to do a good job and is interested in getting ahead with company’s goals and sales objectives.
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Page No. He has multifarious activities. In this section. Some of the qualities of a good sales person are as follows: Ability to estimate customer's needs and desires: He is alert and quickly determines what the customer wants and the best way to sell. 5
. Appearance: Appearance means a lot today and the successful salesman is neat and organised. they called their sales force as sales champs (champions) as they are responsible for the direct marketing of company’s products and revenue generation. empathy and persuasion. in Eureka Forbes Pvt. Enthusiasm: A salesman must radiate enthusiasm during and after the sales call.
He should also be able to understand prospective customers and know how to act under varying conditions. this knowledge can be gained only by years of experience. They live in the present and not in the future. Motivation: He must have more than just an interest in selling. He cannot help but he successful when his customers trust him. Interest in his job: He likes selling and working for the company. __________ is the backbone of the organization because they have to face customer and interact with them. They do want power over others and prefer not to work under close supervision. Loyalty: He must be able to impress upon his customers the idea that his company is the best in the business. Health: Good health generates energy and energy is needed to sell. __________ is responsible for providing profit contribution. Friendliness: A salesman should be able to make people like him and he must like to meet people. Self Assessment Questions 3. Distribution and Supply Chain Management
Figure sense: He should have the mathematical ability to figure and fill up order form correctly and to make the necessary reports. sales person must also have a through knowledge of the highly specialized products or services his employer offers. 6
. Mental abilities: He has the intelligence to understand your products and those of your competitors. He must know how to use words. Knowledge: In some business. In some cases. to understand and direct people and to remember names and faces. Poor health prevents many salesmen from fulfilling their potentials.Sales. Flexibility: A good salesman is able to adapt himself to a variety of customers. Integrity: A salesman must be trusted to do his job well. speech habits and even appearance.
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Page No. 4. Each contact may require a adapting the sales talk.
Advising the company on various media.Sales. distribution expenses. Salesperson produce volume sales as per targets. 7
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1. 1.2 Sales manager as controller Sales manager should act as per the objectives set by the organization and exercise control over his staff so that they may look for advice and may give their best efforts to bring results.4. Following are some of the principal duties of a sales manager: Organising sales research.1 Sales manager as sales coordinator The sales manager performs the function of a coordinator and ensures that the other departments in the company are well informed of sales activities so that they can produce what is required. etc. Setting and controlling the targets.4 Sales Manager: Role and Skills
The sales manager is the most important person in a sales organization so. and he sell the product at a price which may generate profit for the company.
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Page No. when it is required and whether the same can be produced with the existing facilities or it requires changes and so on.4. After all it is positive financial results that add position and power to the sales manager and bring credit to the sales department. territories. He should analyze present condition of the firm. The sales manager also carries out coordinating work with the distribution network.4. sales promotion schemes. 1. 1. make plans for future and find ways to achieve those plans. Monitoring the company's sales policies. product research and such other research activities. etc. all activities are based on his functions and responsibilities. sales experiences. Getting the best output from the sales force under him.3 Generating profits Sales department is responsible for the sales of the products at the best available prices in the given circumstances.
The marketers perform market research and explore the target markets. 2. They brand the products and services.5 Differences and similarities between a salesperson and a marketer Points that differentiate marketers from sales persons: 1. of others' written reactions sentences and and
Reading comprehension: Understanding paragraphs in work related documents. 8
.4. 6. 4. They analyze data constantly and develop pricing strategies which is based on a number of business variables.Sales. taking time to understand the points being made. They run focus groups and launch various market surveys. Negotiation: Bringing others together and trying to reconcile differences. Persuasion: Persuading others to change their minds or behavior. or organizations to make improvements or take corrective action.4 Sales manager skills A sales manager should possess following skills: Active listening: Giving full attention to what other people are saying. Service orientation: Actively looking for ways to help people. 5. Speaking: Talking to others to convey information effectively. asking questions as appropriate. They develop and analyze marketing campaigns. Social perceptiveness: Being aware understanding why they react as they do. 1. 3. other individuals.4.
Monitoring: Monitoring/Assessing performance of self. Time management: Managing one's own time and the time of others. Mathematics: Using mathematics to solve problems. They refine and adjust marketing strategies based on data and feedback. Distribution and Supply Chain Management
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Page No. and not interrupting at inappropriate times.
know their products inside and out. They need to spend most of their time selling. financials.) 5. 4.Sales. 4. Although they have many differences.
Sikkim Manipal University Page No. Though marketers do not interact with customers very often but still they do need to know about their needs and preferences. 3. targets and goals (quotas. Sales personnel are responsible for selling religiously. 1. (True/False) 6. They interact with customers and prospective customers. They have confidence. Negotiation is the job task of a sales manager. and can overcome obstacles. 3.5 Developing a Sales Organization
Due to intense global competition as well as slow growth in the market any company will require the re-engineering of a sales organizational structure. They both need to be passionate and aware of the current market trends. there are a few similarities too. may be the department head or the marketing manager. Do they have qualities to be a good sales person? Self Assessment Questions 5. (True/False)
1. Organizing sales research & getting the best output out of sales force are duties of a sales manager. 9
. They live to present and always look for opportunities to show off their product or service. Both marketers and sales personnel work towards common ultimate goal of revenue generation. 5. They have a successful track record of selling. Distribution and Supply Chain Management
Points that differentiate salespersons from marketers: 1. sales personnel also carry out the work of the marketers and vice versa. 2. 2. They are listed below. 6. Activity 1: Analyse the personality and skills of few of your friends. like the sales personnel. They are driven by achievement. Sometimes. Sometimes. etc. sales competitions. have a passion for sales. they both report to a common manager.
in an organization trying to sell a new product through middlemen. The number of the different classes of activities assigned to a single position would depend upon the degree of specialization associated with each position.1: Process of Developing a Sales Organization Sikkim Manipal University Page No.Sales. dealer relations becomes a crucial activity and has to be assigned to positionshigher up in the sales organization. The objectives of the sales organization are to define the corporate objectives in both quantitative and qualitative term. Similar activities and tasks will have to be grouped together and assigned the positions.
Figure 1. Distribution and Supply Chain Management
Figure 1. 10
.1 a step by step process of developing a sales organization. The place of an activity in the hierarchy would depend upon the relative importance of that activity for the sales department.
Source: Dr. Next step is. The step that follows is the identification of the necessary activities that need to be performed if these quantitative and qualitative objectives are to be achieved. Matin Khan. Excel Books. Sales and Distribution Management. for example. such that each position has adequate tasks to perform which are also varied enough to provide challenge and motivation. defining the positional levels at which these activities will be performed.
A line function is a primary activity and a staff function is a supporting activity. 8. these positions have to be assigned to personnel. Once the sales people know what their responsibilities are and who they report to. Centralized and decentralized organizations 1. 11
. is that of the relationship between these positions in the organization – how many individuals would a person have reporting to him. __________ of an organization structure. who shall be accountable to whom.Sales. While designing a sales organization therefore a key consideration is the provision of flexibility.6 Types of Sales Organizations
Sales organization development refers to the formal. Distribution and Supply Chain Management
Once the different positions and the activities associated with them have been decided upon. they can concentrate on doing their expected jobs to the best of their ability. which positions in the structure would have the authority to command and which shall only advise and guide. Horizontal and vertical organizations. effective coordination efforts and defined lines of __________. authority and responsibility for sales groups and individuals.
1. A decision that has to be taken along with the identification of positions. growth in both products and markets as well as to competitive requirements. An effectively designed sales organization has a framework that enables the organization to serve its customers. Because of intense global competition and slow growth in the market the company require. Self Assessment Questions 7. effective coordination procedures and defined lines of communication.6. the selling function is the line component whereas
Sikkim Manipal University Page No. when developing his own sales organization. In a marketing organization. Key considerations while designing a sales organisation are provision of flexibility. coordinating process of communication. a sales manager must recognise and deal with some basic problems faced by organizations. Thus. Sales organizations have to be responsive to changing market trends.1 Line and staff components Marketing organizations also feature line and staff components. Formal and informal organizations. The sales organization structure can be: Line and staff components of organizations.
First. and distribution. marketing research.3 demonstrates several key aspects of a large-scale marketing organization.
Sikkim Manipal University Page No. the basic premise behind them remains applicable to marketing organizations. marketing research and sales planning are required because they allow field representatives to concentrate their efforts on the largest potential markets.2: A Line Marketing Organization
Some firms operate with a simple line marketing organization such as the one shown in Figure 1. Here. Figure 1. in-house sales correspondents relieve the field force of activities that would distract them from their basic efforts. a marketing organization is simply the sales organization. sales training and distributor relations are usually considered staff roles. 12
. This type of arrangement may be satisfactory for small firms in basic industrial markets. rather than Vice President of Sales. The line and staff organization shown in Figure 1.Sales.3 indicates that all marketing activities have been grouped together. The Vice President for Marketing is in charge of more than just the field sales force. Although the use of the terms line and staff has been criticized in many quarters. the Chief Marketing Officer is typically called the Vice President for Marketing or Director of Marketing. and maintenance of personnel ensure that the customer is satisfied with the purchase.
Figure 1. marketing planning. Advertising and sales promotional support is needed to precondition the prospect to accept the salesperson's presentation. A modern sales force has to receive various types of support in order to accomplish its objectives. The title change is indicative of the person's added responsibilities under a line and staff structure. suggesting that the basic tenets of the marketing concept have been accepted. Distribution and Supply Chain Management
.3: Line and Staff Marketing Organization
Second. Distributor relations. This allows the formal structure to operate efficiently.
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Page No. The formal organization is a fixed set of rules of intra organization procedure and structure that of the management whereas the informal organization is often developed from the informal relationships existing within the organization. Most formal organizations would be totally ineffective if it were not for a supportive informal organization. Distribution and Supply Chain Management
Figure 1. sales planning. staff activities report to the line position that they support. Actual communications do not usually follow the formal organizational lines. Figure 1.2 Formal and informal organizations Every firm has a formal and an informal organization. By contrast. 1.6. informal organization is basically a communications pattern that emerges to facilitate the operation of its formal counterpart. sales analysis and sales training are considered to be directly supportive of the field sales effort so these departments report to the General Sales Manager.Sales.4 shows an informal communications pattern that might exist in a marketing organization. Also called the grapevine. marketing research and advertising are broader functions and they report to the Vice President for Marketing.
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The development of an effective sales organization requires that informal relationships and communication patterns be recognised as being equally useful in accomplishing sales objectives. consumer complaints over delays in correcting billing errors can be mitigated when the district sales manager directly contacts the head of accounts.4: Informal Communication System in a Marketing Organization
Consider the case of a field salesperson who is responsible for collecting certain competitive information such as prices and trade discounts.3 Horizontal and vertical organizations A sales force can have either a horizontal or a vertical organizational format.5) the data would be so backdated that it would be useless to the management.6. If this information were forwarded through the formal organization (Figure 1.Sales. The informal communication system. This arrangement varies among companies even within the same industry. Similarly.
Figure 1. allows the information to be transmitted directly to the director of marketing research. 14
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Figure 1. They should be encouraged to the extent that they improve organizational efficiency. however.
In this structure. Each company must determine the span of control that works best for its sales organization. but the number of managers at any particular level is increased. While these guidelines may seem appropriate. 15
. approximate guidelines for setting reasonable spans of control are: trade selling – 12 to 1.7. It appears that the optimum span of control is reduced as the type of selling becomes more technical or complex.6. With this in mind. The span of control refers to the number of employees who report to the next higher level in the organization. there are several layers of sales management – all of which report vertically. it must be remembered that they are only guidelines. while vertical organizations characterise cases in which closer managerial supervision is required. Once set. consumer service selling – 10 to 1.6: Vertical Sales Organization
The other extreme is a horizontal organization. missionary selling – 10 to 1.
Sikkim Manipal University Page No. The factor that determines whether a vertical or horizontal organizational structure should be employed is the effective span of control. Horizontal structures tend to exist where larger spans of control are acceptable.
Figure 1. Instead of two or three district sales managers. and technical or industrial selling – 6 to 1.Sales. the span of control should be monitored periodically in order to assure maximum effectiveness. Distribution and Supply Chain Management
A purely vertical sales organization would be similar to the structure represented in Figure 1. Here the number of management levels is reduced appreciably. It is difficult to generalise how to set guidelines for appropriate spans of control. there may be seven or eight. shown in Figure 1.
since it results in poor morale as well as failure.8. 1.7: Horizontal Sales Organization
1. Distribution and Supply Chain Management
Figure 1. the responsibility and authority for decisions are concentrated at higher levels of management you find higher degree of decentralization as an organization grows in size. This type of mistake should be avoided.
Sikkim Manipal University Page No.Sales. location. the formulation of sales organization is a three step process. Expansion results with top executives being less able to deal with the range of decisions that they handled when the organization was small. responsibility and authority are delegated to lower levels of sales management while in a centralised sales organization. A decentralised organization structure is ineffective unless commensurate responsibility and authority accompany the assignment of decisions to a specific level of sales management. by using various methods of segmentation. Mostly the segments with similar sales processes are identified so that they could be easily targeted by the sales organization. The population can be segmented on the basis of demographics. Step 1 – Sales Strategy: The first step is to segment the population into different categories.5 Formulation of sales organization As seen in the Figure 1. these decisions are then shifted downwards in the organization. 16
. and then fail to grant the related authority to accomplish the same. A classic mistake is for the top management to charge a field sales supervisor with the responsibility to perform a particular task.4 Centralized and decentralized organizations In a decentralised organization.6. By necessity. psychographics etc.6.
the ways to inform customers about the product and services available and ways to reach them are decided. compensation etc. Distribution and Supply Chain Management
After deciding on the segments. Effectively reaching the segments with right products and services holds the key to success. the formal relationships between sales persons. the products and services that relate to each decided segment is specified. The company decides the channel through which it will reach the prospective buyers. number of sales persons to be devoted to a particular segment. Some companies adopt an indirect channel including intermediaries and some adopt a direct approach. Step 3 – Sales Force Design: At this step.Sales. appraisal and evaluation methods. Step 2 – Marketing Strategy: At this stage.8: Formulation of Sales Organization Sikkim Manipal University Page No. 17
. the sales organization decides the structure of its sales force. It decides the roles of different sales person.
CNC machine tools) do so through a team of their own sales engineers.
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Page No. most organizations selling capital industrial equipment (say earth moving equipment. Development of an effective sales organization depends upon the recognitions of informal communication & relationships. For example. (True/False) 10. (True/False) 11. The importance of the sales and distribution function varies across organizations depending upon its nature and variety of products. Distribution and Supply Chain Management
Activity 2: Find out the sales management techniques Eureka Forbes Pvt.Sales. Formal communication is also called grapevine. (True/False)
1. and the competitive practices among other things. target market.7 Linking Sales and Distribution Management
Sales and distribution management constitutes one of the most important parts of marketing management.e. Which sales organization structure. is using in India. Sales management has been defined as the management of a firm's personal selling function while distribution is the management of the indirect selling effort i. While. planning. Sales Force Design is a stage where we inform customers about the product and services available and ways to reach them are decided. Distribution management comprises management of channel institutions as well as physical distribution functions. consumer density and dispersion. 18
. company follows? Why? Source: www. The sales management task thus includes analysis.eurekaforbes.com Self Assessment Questions 9. you may recall that in mail order companies (where the major exercise is distribution in response to orders received) virtually no personal selling effort is utilised. selling through extra corporate organizations which form the distribution network of the firm. mainframe computers. involving little or no intermediary. organising. (True/False) 12. Ltd. directing and controlling of the company's sales effort. The span of control refers to the number of employees who report to the next higher level in the organization.
and certainly the management philosophy towards control. Distribution and Supply Chain Management
Except for extreme instances of organizations which make exclusive use of either their own sales force or distribution channels. In other words. it is required to decide upon the type
Sikkim Manipal University Page No.Sales. The emerging practice is to use own sales force to sell to wholesalers/semi-wholesalers who in turn sell to retailers. Apart from the important fact that in most organizations both sales management and the management of channels of distribution are the responsibility of the sales manager and should be viewed as jointly. Very few firms (unlike say Brooke Bond) use their own sales force to reach upto the retail level. activities of the sales organization would have to be coordinated with channel operations if sales goals haves to be effectively realised. semi-wholesaler.8 Interdependence of Sales and Distribution
After going through the above section you would have realised how interlinked distribution and sales management are. frequency of purchase and customer concentration) preference and buying practices of the target customers. The decision of the organization to allocate certain responsibility in the exchange process to its channel members would define the scope of responsibility of its own sales force and thereby would determine the type of personnel and training required. A major decision in sales and distribution therefore becomes the judicious allocation of the above tasks between the sales force and channel members.
. contributing to the accomplishment of the marketing task. an organization may decide to deal directly with its wholesaler. retailer or consumer. most organizations get the above functions performed through a combination of their own sales force and the distribution net work they choose to hire. some other pointers towards the interdependence of these two vital functions are as under: All organizations use their own sales force or distribution network to reach out to their customers. (including market size. The determinants of task allocations are: competitive practice. Even though. As both the sales and distribution functions are simultaneously performed to accomplish the firm's sales objectives their dependence on each other for the effective attainment of overall marketing goals becomes obvious. product and market requirements.
Since the requirements of each of the above types of first level contact entities are different from that of the other. 20
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of help it will provide to the first and subsequent level of intermediaries. Within the corporation. Sales management has been defined as the management of a firm's personal selling function while distribution is the management of the indirect selling effort. This would mean that the sales management has the responsibility of structuring organizational relationship within their own department and with interacting organizational entities so that the sales task can be performed and coordinated with the overall marketing goals.Sales. Depending upon it own set of variables the organization would try and optimise the effectiveness of the exchange process through the use of some combination of the two. (True/False) 14. Evaluate the design and structure of its sales force. Activity 3: Obtain the sales organization structure of any firm. distribution) would define that of the other (sales management). costs and financial requirements etc. Necessarily then the scope of one (i. flexibility. The choice before an organization to have direct distribution. The effective functioning of dealer-sales organization relationship often becomes the key to successful working operations within the organization. indirect distribution or a combination of the two is of strategic importance and depends upon factors such as the degree of control. The sales organization is the initiator as well as the implementer of these dealer support operations. Interview a sales manager of the company to determine how its markets and customers influence the design of its sales force. the company's sales task would have to be defined in context of first level of contact chosen by it. Self Assessment Questions 13. the sales organization is the initiator as well as the implementor of these dealer support operations. (True/False)
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Page No.e. Marketing through channels implies lower degree of control but would also mean lesser funds tied up in maintaining inventory and lower fixed and variable costs of managing the channels.
2. The ultimate objective of sales management is to influence the consumers of the target market to get sales orders.10 Terminal Questions
1. Sales management is generally referred to as the backbone of marketing. What are the qualities of good sales personnel?
Sikkim Manipal University Page No. 5. Monitoring: Assessing performance of self. other individuals. Discuss the roles and responsibilities of a sales manager. Distribution and Supply Chain Management
1. organizations to make improvements or take corrective action. efficient and result oriented sales manager. It is overall management of selling activities and it refers to only the specialised application of the process of management as a whole. Compare and contrast the various types of sales organization structures. 3. who devotes his energies to fulfilling the targets with the help of other persons working in his department. What factors should be kept in mind while developing a sales organization? 4.
. Formal organization: The formal organization is a fixed set of rules of intra organization procedure and structure that of the management.9 Summary
The success of sales depends upon a good sales department headed by a competent. Explain how negotiation skills act as a prerequisite for a sales manager. The sales manager occupies a key position in a sales organization. All activities are based on his functions and responsibilities. or
Centralized organization: The responsibility and authority for decisions are concentrated at higher levels of management. It is highly dependent on team work but the responsibility lies with the sales manager. Decentralized organization: Authority is delegated to lower levels of sales management.Sales. Glossary Sales management: Sales management is concerned with the process off encouraging customers to exchange their funds for your services or goods.
Refer to 1.4 – Coordinator.6 – Line and staff. False 10. Distribution and Supply Chain Management
1. True 11. Re-engineering 8. controller 3. Refer to 1. Sales 2.Sales. True Answers to Terminal Questions 1. Sales tracking 3.11 Answers
Answers to Self Assessment Questions 1.
Sikkim Manipal University Page No. formal and informal 5. marketing strategy and sales force design 4.3 – Ability to estimate customer's needs and desires
A large company which is producing wide range of health & personal care products is selling all over India. Salesman 4. True 7. Sales person 5.6 – Sales strategy.4 – How to reconcile differences 2. Communication 9. Refer to 1. True 12. The weekly reports are being sent to the national manager which are compiled & analysed at the Centre. True 6. False 13. 22
. Refer to 1. They are controlling the sales by having a geographical sales organization given below:
All the Regional Sales Managers are under the national sales manager who is controlling all the sales from the Centre. Refer to 1. True 14.
sales promotion. It is observed that keeping two types of salesmen is increasing the expenses but the volume of sales is satisfactory. The two types of salesmen from the same company are selling different products in the same territory and are calling upon the same customers. 23
. This practice leads to objection from some customers and there is wastage of time attending to both of them. Distribution and Supply Chain Management
The regional manager has under them the area sales manager. The company is faced with the problem of coordination and proper recruitment and training of the salesmen. Can you suggest an alternative organizational structure or modify the existing one? 2. Excel Books. How can you further help the organization for being more effective in sales?
Source: Dr. The company has two types of salesmen dealing in health care and personal care products. The entire planning and co-ordination.
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Page No. Since all the planning. training and development is done centrally. Matin Khan. territory development. some problems are being faced by the regional manager. as different types of salesmen are required by different regions who can understand and also be understood by the consumer. Sales and Distribution Management. Questions 1. sales training. after-sale service is all being taken care of at the Centre.Sales. This is an important consideration for the promotional sales. the field sales supervisor and the sales representative in hierarchical order.