CHAPTER-1 SALES

MANAGEMENT

• Objectives and Functions,

• Setting up a sales organization,
• Personal Selling, Management of Sales
force,
• Recruitment & Selection,
• Training, Motivation and Evaluation,
• Compensating Sales Force,
• Sale forecasting,
• Territory Management,
• Sales Budget, Sales Quota.
•Sales Management:

• it is mainly concerned with management of selling activities or

selling function. Sales management generally involves :
•The direction and control of sales army
•Sales planning
•Sales budgeting
•Policy framing
•Co-ordination of marketing research
•Advertising
•Sales promotion
• Sales management is defined as the planning,
directing and controlling of personal selling, including, recruiting,
selecting, equipping, assigning, routing, supervising, paying and
motivating as these task applies to sales force.
• American Marketing Association
WHAT
IS SALES
MANAG
Sales management is the attainment of sales force
EMENT? goals in an effective and efficient manner through:
• Planning
• Staffing
• Training
• Leading
• Controlling organizational resources
 Sales Management Functions

Planning:

The conscious, systemic process of making decisions

about goals and activities that an individual, group,
work unit, or organization will pursue in the future
and the use of resources needed to attain them.
 Sales Management Functions

Staffing:
Activities undertaken to attract, develop, and maintain
effective sales personnel within an organization .
 Sales Management Functions

Leading:
The ability to influence other
people toward the attainment
of objectives.
 Sales Management Functions

Controlling: Monitoring sales personnel’s activities, determining

whether the organization is on target toward its goals, and
making corrections as necessary.
Sales Management Functions
Strategic Leverage of
the Sales Force

• Customer focus
• Enhances customer loyalty
• Source of competitive advantage

9
Enhances Customer Focus

• Allows a targeted market segment approach

• one customer at a time
• customize sales calls and presentations by needs
• important source of market knowledge and customer needs
assessment

10
Develops Customer Loyalty
• Creates high switching costs
• salesperson (knowledge, expertise, relationship) creates
product/service differentiation, particularly when
competitors’ products deliver the same basic benefits
• Loyalty reduces the customers’ price sensitivity

11
Source of
Competitive
Advantage

• Creates a barrier to entry

• costs of creating a sales force
• market access
• Creates a medium-to-long term
competitive advantage

12
Evolution of
Personal Selling Partnership Strategies

Business management

Consultative
Selling

Negotiation

Persuasion
•Objectives of Sales Management:-

•From the organization point of view of there

are three general objectives of sales
management.

•1.Sales maximization

•2.Profit maximization

•3.Attainment of continued growth.

•Types of Selling

•The diverse nature of buying situations

demands a diverse pattern of selling function.
Selling process varies according to the nature of
selling task.

•The notion of different types of sales task was

first put forward by Robert N. McCurry in
1961 and this classification still holds good
today. He classified selling positions into the
following categories that range from the
simplistic to the most complicated level of
negotiating ability:
•
 Inside order
taker

Order taker Delivery

Sales people
Outside order
taker

Missionary
Order creators Sales people
Selling Functions New business
Sales people
Front line
Organizational
Sales people
Sales people
Consumer
Order getter Sales people

Technical support
Sales people
Sales support
Sales people

Types of Selling Merchandisers

•Order takers are those sales people who respond to the already
committed customers.

•· Inside order taker is that where the task is one of clerical

duties and the opportunity to sell is limited. Customers have
normally made up their minds at this stage, so the process is
simple and only occasionally offering advice when the customer
asks for it. For e.g..Retail sales assistant.

• In delivery the job is concerned with the distribution of

say milk to individual homes or bread to retail outlets. This type
of salesperson will possess little in the way of sales skills and
responsibilities and continued sales are more likely to come from
a pleasant attitude and good service
 • Order creators do not
Types of directly receive orders
Selling since they talk to Specifies
rather than customers.
• Order getters attempt
to persuade customers to
place an order directly.

• Missionary selling is
• New business
where salespeople are sales people (Creative
expected to build up selling) is the final
goodwill and educate and
category and this tends
ultimately influence the to call for the greatest
actual or potential user amount of sales ‘skills’.
rather than simply
soliciting orders.
 • Organizational salespeople
Types of are the industrial sellers
Selling who try to establish and
nurture a long-term
relationship with
organizational buyers.
• Consumer salespeople
comprise the door-to-door
salesperson who sell spices,
eatables, insurance and
other personal products for
individual consumption
• Technical selling involves
the task of explaining the
function of a product to a
prospect as well as
adapting it to individual
customer’s needs.
• Merchandisers
provide sales support in
retail and wholesale
selling situations.
Selling Under Marketing

• The most closely and interchangeably used

tools are selling and marketing.

• Marketing starts with consumer research

and ends with customer delight. But selling as
a part of marketing confines only to those
activities that brings transfer of goods and
services from producer to consumer for
money.
 Marketing Includes

Pre Selling Selling Activities Post selling

Activities Activities

* Post idea *How to create Customers? *Customer feedback

*Storage *How to motivate to sell? *After Sales

Service

*Transportation

*Quality maintenance
Difference Between
Selling and
marketing: Marketing
1.Emphasis on needs & want
of buyer
2.First determines customer’s
Need then go for production
3.Management is profit oriented
4.Planning is long-term oriented
5.Emphasis on innovation and
providing better customer value
6.Consumer determine price &
price determines cost
7.Views business as a consumer
satisfying process
8.It views the customers at the
starting point of business.
Selling
1..Emphasis on product and need
of a seller.
2.Company manufactures the pdt.
first then decide how to sell it
3.Management is sales volume
oriented
4.Planning is short-term oriented
5.Emphasis on staying with same
technology & reducing cost.
6.Cost determines price.
7.Views business as a good
producing & delivering process
8.Selling views customers as the
Last link in business.