Reference book

Sales Management
by
Edward W Cundiff,
Richard R Still,
Norman A.P Govoni
Sales Management as a career
Advantages
Fast growth opportunities
Measurable performance
Opportunity to Build wide network/ relationship
Helps Build emotional intelligence
Opportunity to gain Industry knowledge
Inter Personal Skills
Can be the of the company
More scope to enrich in all job functions
Generally turn to be good in HR
Personality becomes aggressive
Sales Management as a career
Perils
Non performance easily identified
Some tend to remain just good salesmen
First to take the brunt of Non Performance
The Modern Sales Personnel
Is good at:

Planning
Building and Maintaining effective Organization
Control and Monitoring
Implementation
Achieving end Result
Responsibilities in Sales Management
Achieve Targeted Sales
Contribute to Profit
Maintain Growth
Evolution of Sales function (Pre-Industrial Era)
Demand > Supply

Buyer Seek Sellers

Manufacturing had Higher

Importance

No Mass Production
Evolution of Sales function (Post-Industrial Era)

Mass Production Commenced

New Markets to be found

Specialized Departments for

Personal Selling

Competition Forced it
further
 How marketing Function got Split?

MARKETING

Sales Market Credit/ Traffic /

Research Collection Shipping

Advertising Sales Export Merchandis

Promotion sing
Activities in Sales Management
Planning
Control of Personal Selling
Recruitment
Training
Equipping
Assigning
Motivating
Routing
Supervising
The Above activities are related to Personal Sales Force

Sales and Marketing Dept work together

Sales is both and Operational and Executive function
 Sales Management and Financial Results

Sales - Cost of Sales = GROSS PROFIT

Gross Margin - Expenses = NET PROFIT

Hence Sales has a Direct Influence on the Profitability

Any impact on Sales speaks on the Profit Directly

Sales, Expenses and Profit relationship

Situation
Growth in Sales with Higher Growth Expenses
Solution
Maintain Sales growth but shrink Expenses
No result- shrink both Sales and Expenses
Catch
At times Sales Organization get blind to expenses in
sight of Sales Volume
Sales Manager as a
Co-ordinator
Organizing & Co-ordination function
What do they co-ordinate ?
Co-ordinate different order getting methods
Cross objectives of different channels
Co ordinate with other Marketing activities
Co ordinate personal Selling with Advertising and
Sales Promotion
Sales to capitalize on Advertising
How do they co ordinate ?
• Co ordination by participate method
Advertising and Sales promotion an arial support.
What done best by Personal Selling and Advertising is
decided
Co ordination with Distribution Network
(In case of dealer network Management)

Create middlemen (dealers)

Persuade them to stock
Create market pull for them to stock
Co ordinate between company and dealer for
Promotional work
Establish dealer identity among end users
Protect the interest of the company and the dealer
Share promotional Cost and Risk with dealer

Ajay & Co. Rahul & Co Sanjay & Co. Vijay & Co.
Sales Management
&
control
Analysis of the Situation

?
What is the present performance level?
How did we achieve the present level?
Where are the trends for future?
How do we get to the target?
“Control measures should work at clockwise precision”
Setting Performance Standards
Fix upper and Lower limits of performance
Analyze factors like
•Area
•Market Potential
•Salesmen skills
•Assignment base
•Past performance
•Future objective
•Cost of Sales
while fixing range of performance
 Gathering information on
Actual Performance
Identify the relevant information needed
Avoid duplication
Establish periodicity and time schedule for information
gathering
System for action plan based on information.
Evaluating Performance
Compare results with Target / Standard
Question analyze more than standard variation
Consider influences out of control
Action to correct Controllable Variations
Provide Directions on more effective way
Guide/ Train
Install Procedures & Practices to control
Adjust the Un-controllable factors
Rework on Standard if un-realistic
Re look at the policies and procedures
Identify lacunae in Planning
Sales Control Styles
“Yes, expectations are high”
Informal Control
More effective in smaller organizations
Should have a feel for the pulse of business
Able to quickly put you finger on the problem
Be close touch with market
This is what you think of a company with no follow up
Formal control
For larger organizations
Have written practices and sales policies
Build authority for changing
With exceptions makes changes
 Policy formation and review-
Informal control

Study all influencing factors prior to policy formation

Consider Intangible factors as well
Review periodically
Amend based on:
Market response
Uncontrollable environment changes.
Acquire more information

In case of new product changes are more likely to

happen due to unknown factors
Formal control on sales volume
Fix sales volume target based on market forecast
Monitor periodically
Review based on:

Industry sales trends

Activities of Competitors
Market share percentages
Govt Policies
“don’t you need for control and systems”
Budgetary Control
Control of Sales, Expenses, Margins and hence profit
Individual profit and loss statement can be made for
Territories
Products
Marketing Channels
Class of Customers

Install review system and control Sales , Expenses

Take timely corrective action
Take decision of elimination with over all Marketing
objective in mind
Pre requisite for success of Sales
Management Control
A de-centralized decision making
Senior Management pitches in when situation not
manageable
Time is the factor
Train and empower hierarchy down the line for
decision making