MODULE-1 [Hours- 08]

Introduction to Sales Management: Meaning, Evolution, Nature, Role

and Importance of Sales Management, Personal Selling - Types,
Difference between Selling and Marketing, Sales Management Process,
Emerging Trends in Sales Management, elementary study of sales
organizations, qualities and responsibilities of sales manager, sales
manager’s role and functions, Types of sales organizations.

Case Study:
•How Low Will You Go? HBR CASE STUDY, Harvard Business Review,
May – 2009
•Old Hand or New Blood? HBR CASE STUDY, Harvard Business Review
Notice of Use Restrictions, May – 2009

Learning Resource:
•Sales & Distribution Management by Tapan K. Panda & Sunil
Sahadev, 6/e, Oxford University Press
•Sales & Retail Management an Indian Perspective by Dr. S.L. Gupta,
1/e,2007, Excell books
Managing of Sales Force by Spiro Stanton Rich, 11/e,2003, TMH
WHAT IS SALES?
WHAT IS SALES?

WHAT IS SELLING?

SELLING SITUATIONS
•Deliver the Product
• Internal Order Taking
• Order taking + Field Work
• Educate customer + Build Goodwill
• Technical Knowledge
• Creative sale – Tangibles
• Creative sale - Intangibles
 SELLING V/s MARKETING
Emphasis is on the product Emphasis on consumer needs
wants
Company Manufactures the
Company first determines
product first.
customers needs and wants and
Management is sales volume then decides out how to deliver a
oriented product to   satisfy these wants

Management is profit oriented

Planning is short-run-oriented
in terms of today’s products and
Planning is long-run-oriented
markets
in today’s products and terms of
new products, tomorrow’s
markets and   future growth
 
Views business as a good Views business as consumer
producing process. producing process satisfying
process.
Emphasis on staying with
Emphasis on innovation on
existing technology and reducing
costs. every existing technology.


Different departments work as All departments of the business
in a highly separate water tight integrated manner, the sole
compartments. purpose being generation of
consumer    satisfaction.
Cost determines Price.
Consumer determine price,
Selling views customer as a last price determines cost.
link in business
Marketing views the customer
last link in business as the very
purpose of the business
SALES MANAGEMENT

“Sales management is attainment of an organization's

sales goals in an effective & efficient manner through
planning, staffing, training, leading & controlling
organizational resources”.
Evolution of SALES MANAGEMENT &
PERSONAL SELLING
PARTNERSHIP
STRATEGIES

BUSINESS
MANAGEMENT

CONSULTATIVE
SELLING

NEGOTIATION

PERSUASION
NATURE AND ROLE OF SALES MANAGEMENT
• DETERMINING SALES FORCE OBJECTIVES AND GOALS.
• FINALIZING SALES FORCE ORGANISATION, SIZE,
TERRITORY AND QUOTA.
• FORECASTING AND BUDGETING SALES.
• SELECTING, RECRUITING AND TRAINING THE SALES
FORCE.
• MOTIVATING AND LEADING THE SALES FORCE.
• DESIGNING COMPENSATION PLAN AND CONTROL
SYSTEMS.
• DESIGNING CAREER GROWTH PLANS AND BUILDING
RELATIONSHIP STRATEGIES WITH KEY CUSTOMERS.
TYPES OF PERSONAL SELLING
• INDUSTRIAL SELLING
• SELLING TO RETAILERS
• SELLING TO BUSINESS USERS
• INSTITUTIONAL SELLING
• SELLING TO GOVERNMENTS
• RETAIL SELLING.
• SERVICES SELLING
EMERGING TRENDS IN SALES MANAGEMENT

 Customer Orientation
 Technology
 Relationship Selling
 Diversity
 New Selling Methods
 Global and Ethical Issues
QUALITIES OF A SALES MANAGER

 Delegating.
 Willing to give up the top spot.
 Focusing on others
 Supervising
 Managing
 Coaching, training, mentoring
  Leading
  Hiring and Firing
 Decision Making
SALES MANAGEMENT PROCESS

• STEP 1: Strategic Sales Management Programme

Formulation.

• STEP 2: Implementation of Strategic Sales

Management Programme.

• STEP 3: Evaluation of Strategic Sales Management

Programme.
SALES MANAGEMENT PROCESS
STEP 1: Strategic Sales Management Programme Formulation

THE ENVIRONMENT
External Environment Internal Environment

MARKETING STRATEGY
Marketing Mix

SALES MANAGEMENT FUNCTION

Sales Force Deployment,
Account Sales Force Sales planning, Forecasting
Territory Design & Route
Management Organization & Quota Setting
Planning
SALES MANAGEMENT PROCESS

STEP 2: Implementation of Strategic Sales Management Programme

.

STEP 3: Evaluation of Strategic Sales Management

Programme:
• Performance Evaluation
• Check on External Environment
• Sales Volume, Profitability, Market Share, etc.
• Cost Analysis
 SALES ORGANISATION

A company where everyone recognizes the importance of

sales and consciously supports the sales process, the sales
representatives have the full support of the organization
and service representatives to deliver goods and services in
a manner that exceed the customers' expectations.
Eureka Forbes
The Direct Marketing Pioneer
 History
•1909, Detroit : Fred Wardell launched vacuum cleaners
under the name «  Eureka »
•Established itself as market leader in Vacuum cleaner
industry by adopting direct marketing and personalized
services
•Electrolux buys Eureka-Williams in 1974

•Comes to India in JV with FGL- named Eureka Forbes

 Journey in India

• Had to establish the concepts of Vacuum cleaners and

Water purifiers before selling.
• Core strength : Dynamic highly motivated salesforce

EUROCHAMPS
The friendly man from Eureka Forbes
• Gained foothold after initial hiccups through many
sales and marketing strategies
Sales Management @
 • To provide an innovative product range through Direct
Marketing
Sales
Objective
• To make the people aware of health and hygiene

• Direct marketing through 5000 salesman and 400

Nature and
Role of branches
Selling

• “The Friendly man from Eureka Forbes”

Image of • Instilled more confidence and acceptability in
Selling consumers
Sales Organization @
 Sales Organisation
Weekly sales reporting
by salespersons

More efficient Efficient Sales

inventory management Force
Management

Online ranking profiles

of Salesmen
CRM @ Eureka Forbes
“ A relationship doesn’t end with sale.
It actually begins.”
•Annual Maintenance Contract

•Operation Red Zone and Mobile service for customers

from specific places
•Water labs

•Euroclean Home Contest

•24 x 365 virtual call center

•Discounts to dedicated customers

Sales Functions and Policies
@
 Changing with time….

• Increase in consumer focus : Advertising Strategies

• Consumer Training Drive

• Online Training sessions for new salesforce
• Eureka Forbes Institute of Environment
• Television initiatives
• Pollution control camps

• Led to increase in customer base, sales turnover and

Personal Selling @
 Organizational design types
- formal and coordinated task
- assigning territories
- establishing flows of communication and responsibilities
of sales groups and individuals to customers effectively

Mr. Ratnakar Shetty

Line organization President / Owner

Mr. Chandrakant
VP (Sales)

Five sales people

 Design by territory
VP Marketing

National Sales
Manager

Divisional Manager Divisional Manager Divisional Manager

(East) (North) (West)

Regional Sales Regional Sales Regional Sales

Manager Manager Manager

District Sales District Sales District Sales

Manager Manager Manager

Sales Staff Sales Staff Sales Staff

(City wise) (City wise) (City wise)
 Design by management function
Mr. Dara singh,
VP
(Marketing)

Staff Function Line Function

Mrs. Chitra Mr. Chandra De

Mohanty Mr. Dibya Behera Manager
(Advt / Sales (Sales Manager) (MR)
Promotion Mgr)

20 Sales People
 Design by product

President,
Marketing

Product Manager (A)

Manager Manager Manager

(Sales) (Training) (Promotion)
Product Manager (B)

Manager Manager Manager

(Sales) (Training) (Promotion)
 Design by customer
President
(Marketing)

Vice President
(Marketing)

Sales Manager Sales Manager Sales Manager

Industrial Products Wholesalers Retail Sales

Sales People Sales People Sales People

 President

Functional Vice President Vice President Vice President

(Production) (Marketing) (HRD)

Geographic
Marketing Manager Combined Marketing Manager
International
India
Sales Org. Design
G.M G.M
G.M
International International
Consumer care
Customer Sales Sales

Divisional Divisional Divisional

Manager Manager Manager Product
Soaps Paper Food

Eastern Sales Western Sales Northern Sales

Division Division Division

Europe Division America Division Gulf Division