Sales Management

Chapter 1
.
Introduction to Sales Management

Learning Objectives
To understand the concept of sales management

 To discuss the evolution and history of sales management

 To explain the importance and functions of sales management

 To understand the sales management process

 To get an overall idea of current trends in sales management

 Personal selling strategies
Top ten qualities of an industrial seller:
1. Willingness to go to bat for the buyer within the supplier firm
2. Thoroughness and follow through
3. Knowledge of the sales person’s product line
4. Market knowledge and keeping the buyer posted
5. Applying his product and services to buyer’s needs
6. Knowledge of the buyer’s product line
7. Preparation for sales calls
8. Regularity of Sales calls
9. Diplomacy in dealing with operating departments
10.Technical education
 Evolution of personal selling
Partnership
strategies

Business
management

Consultative
selling

Negotiation

Persuasion
 Marketing concepts
The five different marketing concepts:
1. Exchange concept
2. Production concept
3. Product concept
4. Selling concept
5. Marketing concept
6. Societal concept
Selling & Marketing Concepts
Nature and role of sales management
Specific duties and responsibilities of a sales manager:
 The determination of sales force objective and goals

 Sales force organization, size, territory, and quota finalization

 Sales forecasting and budgeting

 Sales force selection, recruitment, and training

 Motivating and leading the sales force

 Designing compensation plan and control systems

 Designing career growth plans and building relationship strategies with key

customers
 Integration of technology with sales function

 Augment the sales force by augmenting the sales-closing process

Types of personal selling
 Types of personal selling
Industrial selling (or B-2-B Selling)
Four categories are:
1. Selling to resellers

2. Selling to business users

3. Institutional selling
4. Selling to governments
 Types of personal selling
Retail selling
Selling to the ultimate consumers for personal or non-
business use or consumption

Services selling

Basically, it is activities or benefits provided to consumers

Services are intangible in nature

Cannot be standardized
 Types of personal selling
Order taker sales people
Inside order takers – retail sales assistants

Delivery salespeople – deliver products to customers

Outside order takers – respond to customer calls

Order creators
Missionary salespeople – persuade customers to promote a
seller’s brand
 Types of personal selling

Order getters
Set of people who persuade customers to make a direct purchase
• Organizational salespeople
• Consumer salespeople
• Technical support salespeople
• Merchandisers
Differences between Selling and Marketing
No. Selling
1 Emphasis on product
2 Company manufactures the product first and then
decides to sell it
3 Management is sales-volume oriented
4 Planning is short-term-oriented , in terms of
today’s products and markets
5 Stresses needs of a seller
6 Views business as a goods producing process
7 Emphasis on staying with existing technology and
reducing costs
8 Different departments work as highly separate
watertight compartments
9 Cost determines price
10 Selling views customer as the last link in business
Marketing
Emphasis on consumer needs and wants
Company first determines customers’ needs and wants
and then decides on how to deliver a product to satisfy
these wants
Management is profit-oriented
Planning is long-term oriented, in terms of new
products, tomorrow’s markets, and future growth
Stresses need and wants of buyers
Views business as consumer satisfying process
Emphasis on innovation in every sphere, on providing
better value to the customers by adopting a superior
technology
All departments of a business operate in an integrated
manner, the sole purpose being generation of
consumer satisfaction
Consumers determine price, price determines cost
Marketing views the customers as the very beginning
of a business
Concepts – Selling and Marketing
Starting Ends
Focus Means
point

Factory Factory Selling and Profits

through
promoting sales volume
Selling Concept

Starting Ends
Focus Means
point

Market Customer Coordinated Profits through

marketing customer satisfaction

Marketing Concept
 Marketing exchange process
Market anticipation

Marketing mix
• Product
Producer/ • Price
marketer Consumer
• Place
• Promotion

Exchange offer of value

Sales management process
Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

Emerging trends in sales management