LOGO

Sales & Distribution

Management

Chapter 1: Sales Management & the

Business Enterprise

Lecturer: MBA. VƯƠNG HOÀNG VŨ

Brand Protection Manager at MOTUL (France)
Email: Thayvu72@gmail.com
Mobile: 0981441099
 Learning
Objectives
• To understand evolution, nature and importance
of sales management
• To know role and skills of modern sales
managers
• To understand types of sales managers
• To learn objectives, strategies and tactics of
sales management
• To know emerging trends in sales management
• To understand linkage between sales and
distribution management

SDM-Ch.1 2
 Evolution, Nature and Importance of
Sales Management
Evolution of Sales Management
Situation before industrial revolution in U.K.
(1760AD)

• No problem with selling.

• Manufacturing & selling handled by one person.
• More attention with manufacturing.
• Part-time basis for selling & other marketing problems.

SDM-Ch.1 3
 Evolution, Nature and Importance of
Sales Management
Evolution of Sales Management
Situation after industrial revolutions in U.K., and
U.S.A.
• Find & sell new markets – huge quantities of goods produced
• Problems: hiring many workers, more lands, buildings, machinery…
• Large-scale manufacturing enterprises had arrived.
• Sales department to solve market expansion.
• Marketing function shifted to intermediaries, retailers, wholesalers
– complicated the market expansion.
• Sales – remote the end users – communication failure.

SDM-Ch.1 4
 Evolution, Nature and Importance of
Sales Management
Evolution of Sales Management
Marketing function splits into sales and other
functions like market research, advertising,
physical distribution.

• Sales department for the inward flow of income.

• Sales department: income-producing division of business.

SDM-Ch.1 5
 What is Sales
Management?

• One definition: “The management of the personal

selling part of a company’s marketing function.”
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 What is Sales
Management?
• Another definitions: “The process of planning,
directing, and controlling of personal selling,
including recruiting, selecting, equipping,
assigning, supervising, paying, and motivating
the personal sales force”.

• Sales management is vital.

• Problems to retailers, manufacturers, wholesalers:
computer hardware dealer, direct-to-consumer marketer.
• Three objectives: sales volume, contribution to profits &
continuing growth.

SDM-Ch.1 7
 Objectives of Sales Management?

• Three general objectives:

sales volume, contribution to profits & continuing growth.
• Targets set for:
sales volume, gross margin, net profit in units of
products and in dollars, with benchmarks of growth.
• Sales management & financial results closely related.

Sales – cost of sales = gross margin

Gross margin – expenses = net profit

SDM-Ch.1 8
 Objectives of Sales Management?

SDM-Ch.1 9
 Objectives of Sales Management?

SDM-Ch.1 10
 Nature of Sales Management
• Its integration with marketing
management Head-
Marketing

Manager- Manager – Manager – Manager – Manager –

Promotion Market Sales Market Customer
Research Logistics Service

• Relationship Selling

Transactional Value – added Collaborative /

Relationship / Relationship / Partnering
Selling Selling Relationship /
Selling

SDM-Ch.1 11
 • Varying Sales Responsibilities / Positions / Jobs
Sales Position
• Delivery salesperson
• Order taker (Response selling)
• Sales support
• Missionary selling
• Technical selling
• Order-getter (Creative, Problem- • Getting orders from existing and • Automobiles, refrigerators,
solving, Consultative selling)
SDM-Ch.1
Brief Description Examples
• Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.
• Inside order taker • Behind counter in a garment
shop
• Telemarketing salesperson takes • Pharma products’ orders from
orders over telephone nursing homes
• Outside order taker. Also • Food, clothing products’ orders
performs other tasks from retailers
• Provide information, build • Medical reps. in pharma industry
goodwill, introduce new products
• Technical information, assistance • Steel, Chemical industries
new household consumers insurance policies
• Getting orders from business • Software and business solutions
customers, by solving their
business and technology problems
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Importance of Personal Selling and Sales
Management
• The only function / department in a company
that generates revenue / income
• The financial results of a firm depend on the
performance of the sales department /
management
• Many salespeople are among the best paid
people in business
• It is one of the fastest and surest routes to the
top management

SDM-Ch.1 13
 Roles and Skills of a Modern Sales
Manager
Some of the important roles of the modern sales
manager are:
• A member of the strategic management team
• A member of the corporate team to achieve
objectives
• A team leader, working with salespeople
• Managing multiple sales / marketing channels
• Using latest technologies (like CRM) to build superior
buyer-seller relationships
• Continually updating information on changes in
marketing environment
SDM-Ch.1 14
Roles and Skills of a Modern Sales Manager

SDM-Ch.1 15
Roles and Skills of a Modern Sales Manager

SDM-Ch.1 16
 Skills of a Successful Sales Manager

• People skills include abilities to motivate, lead,

communicate, coordinate, team-oriented
relationship, and mentoring
• Managing skills consist of planning, organizing,
controlling and decision making
• Technical skills include training, selling,
negotiating, problem-solving, and use of
computers
• Others: coaching, mentoring, delegating…

SDM-Ch.1 17
 Types of Sales Managers / Levels of
Sales Management Positions
CEO /
President

V. P. Sales / Top-Level Sales Managers /

V. P. Marketing Leaders

National Sales Manager

Regional / Zonal / Divisional

Middle-Level Sales Managers
Sales Managers

District / Branch / Area Sales Managers First / Lower Level Sales Managers

Sales Trainee / Sales Person / Sales Representative

SDM-Ch.1 18
 Sales Objectives, Strategies and
Tactics
The main components of planning in a company are
objectives, strategies and tactics. Their relationship
is shown below

Decide / Set Evolve Tactics /

Develop Strategies Action Plans
Objectives

E.G. A company wants to increase sales of electric

motors by 15 percent, as one of the sales
objectives. (see next slide)

SDM-Ch.1 19
To illustrate the relationship between sales objectives,
strategies and tactics, consider:
Sales Goals / Marketing Sales and Distribution Strategy Tactics /
Objectives Strategy Action plans

 Increase  Enter export  Identify the countries  Marketing / sales head to

sales markets get relevant information
volume by  Decide distribution channels  Negotiate and sign
15 percent agreements in 3-5 months
with intermediaries

 Penetrate  Review and improve  Add channels and members

existing salesforce training,  Train salespeople in
domestic motivation and compensation deficient areas
markets  Use effective and efficient  Train field sales managers
channels in effective supervision
 Link sales volume quotas
to the incentive scheme of
the compensation plan

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 Emerging Trends in Sales
Management
• Global perspective
• Revolution in technology
• Customer relationship management (CRM)
• Salesforce diversity
• Team selling approach
• Managing multi-channels
• Ethical and social issues
• Sales professionalism

SDM-Ch.1 21
 Linking Sales and Distribution
Management
• Either sales management or distribution
management cannot exist, operate or perform
without each other
• To achieve the sales goals of sales revenue and
growth, the sales management plans the strategy
and action plans (tactics), and the distribution
management has the role to execute these plans
• This will be illustrated by considering some sales
management actions and corresponding role of
distribution management (in the next slide), as well
as by discussing a few integrated cases given at
the end of the book

SDM-Ch.1 22
 Role of Distribution Management for some of
the Sales Management Actions / Tasks
Sales Management Actions / Distribution Management Role
Tasks

 Strategy for effective coverage  Follow call plan / beat plan

of markets and outlets  Make customer call productive
 Use multi-channel approach

 Strategy for handling customer  Prompt action at the customer interface level
complaints  If the problem persists, involve senior sales
and service people

 Planning of local advertising  Co-ordination with distribution channels

and sales promotion  Responsibility of execution with distribution
channels
 Expenses are shared between the company and
SDM-Ch.1 intermediaries 23
 Key Learnings
• Sales management is defined as the management of the
personal selling part of a company’s marketing function
• Selling includes varying sales jobs like delivery
salesperson, order taker, sales support person, and
order getter
• Sales is the only function or department in an
organization that generates revenue / income
• Skills of a successful sales manager include managing,
technical and people
• Main components of sales planning are objectives,
strategies, and tactics (or action plan)
• Either sales management or distribution management
can not exist, operate or perform without each other

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