SALES MANAGEMENT

By Sneha Vyas

Evolution Of Sales Management
‡ Before Industrial Revolution Small-Scale Industries dominated economy where Manufacturing received most attention & Selling handled on part-time basis . Orders obtained on hand before goods produced. ‡ Industrial Revolution in 1970 opened up new markets giving way to selling on larger scale. ‡ Problems of market expansion resulted into advent of Sales Department . And this was the time when Sales Management gained importance & starting viewed as Income producing division of business

controlling of personal selling including recruiting. As time rolled on . assigning. directing. ‡ Usually defined as The process of planning . paying & motivating personal sales force. ‡ Initially equated with Sales Force Management . selecting. .contd . supervising. equipping.. took broader significance.

sales promotion. . marketing research .contd . ‡ In addition to Management of Personal Selling .it also encompassed other marketing activities like advertising . physical distribution etc. ‡ Dynamic business environment brought lateral shift in functions of Sales Management in organization from transactional orientation to relationship orientation .

‡ Provides critical inputs for marketing decisions like budgeting . .Objectives Of Sales Management ‡ Organizes selling effort by creating suitable organizational structure with appropriate communication system. ‡ Interfaces with distribution channel & external publics. quotas etc. ‡ Also participates in other marketing functions while their policies formulated.

Hierarchy Of Objectives Corporate Objectives Sales Volume Profitability Growth Marketing Management Sales Management .

In ensuring product s deliver quality & value . one of most salient features of customer s experience contacts with sales person . ‡ A most reliable guard to protect Co s image & its customer base.Professionalism In Sales ‡ Sales force professionalism. ‡ Professionals do the right thing with a view to product results under very little supervision. . a key component of Co s brand . Self-motivated & driven. ‡ Bring best information & ideas about how to improve their business by concentrating on their core competencies.

contd . ‡ Trusting relation with buyers significantly shorten their sales cycles & increase their closing rates. ‡ For Professional sales person customers sing their praises & referrals come rolling in. .

or for the operation of their businesses.Organizational Buying Behaviour Purchasing done by organizations for resale purposes. for use in the manufacture of other goods and services. .

. ‡ Close relationships and service are required. ‡ Demand is derived from the production and sales of buyers.Characteristics ‡ Consumer market is a huge market in millions of consumers where organizational buyers are limited in number for most of the products. ‡ The purchases are in large quantities.

. ‡ Lot of buying occurs in direct dealing with manufacturers.contd ‡ Demand fluctuations are high as purchases from business buyers magnify fluctuation in demand for their products. ‡ The organizational buyers are trained professionals in purchasing. ‡ Several persons in organization influence purchase.

-solicit information from inventory control department to reorder material & seek quotations from vendors in approved list. . -executives alongwith purchasing department also involved .Buying Situation ‡ Straight Rebuy :-only purchasing department involved. ‡ Modified Rebuy:-modification in specification of product or delivery. -vendors list also modified on technical & delivery capabilities.

buyer knows that no single party producing all units in system.contd ‡ New Task Buy :.buyer buying product for first time. interest evaluation . trial & adoption take place & one which pass comes on the approved list & price competition follow subsequently. . procure units from various vendors . ‡ System buy :. -for each potential supplier stages of awareness . assemble & fabricate the system. -system seller to engineer system .

Safety officer may initiate request for purchase. ‡ Initiators. Safety officer may himself define specification for safety gloves. . ‡ Influencers persons who held define specifications.person who actually do the buying transaction.Participants in Business Buying process ‡ Users persons who use item like operators using safety gloves.persons who request purchase . ‡ Buyers.

people who approve the purchase. . Personal Manager may have power to approve the safety glove.people who decide on product requirements & suppliers. ‡ Approvers.contd ‡ Gatekeepers control access to personnel in a Company like secretaries etc ‡ Deciders.

. centralized or decentralized purchasing. ‡ Interpersonal Factors like relation between buyers & sales reps.Factors Affecting Business Buyers ‡ Environmental Factors like expected demand for product buyer is selling. of various competitor Co s. ‡ Organizational Factors like changes in purchasing deptt. ‡ Individual Factors marketers need to understand factors appreciated by buyers & which considered as irritants..

Buying/Purchase/Procurement Process ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order routine specification Supplier performance review .

Sales Management Competencies ‡ SHARE THE VISION Enables to march in step by facilitating a common understanding of sales objectives and strategies. by involving team so that they own rather than simply understand the vision. INSPIRING COMMUNICATOR ------ Adopts a coaching style of management communication with a focus on growing self-reliant sales people who think for themselves (awareness) and own their own actions (responsibility) . ‡ CONCISE. from global to local.

contd --Uses all forms of communication (verbal. --Uses the most appropriate form of system to communicate different types of messages . by recognizing the different needs of individuals and groups within the audiences. using a variety of styles. formal presentations and electronic) in a clear and precise way . --Presents. written.

s sales strategies and financial goals to increase the probability of effective execution. consistent with Co. set performance benchmarks and measure performance gaps . adapts or creates systems to define and prioritize KRA s.contd ‡ SALES PLANNER --Facilitates . . simplifies development of team. territory and customer plans. --Uses.

g. managing career expectations. doing the right things. Practices a range of Retention Strategies (e. recognition and rewards) to minimize the disruption of unplanned staff turnover . role clarity. in the right outlets. skilled people. to achieve the right results.contd ‡ ORGANISER --Continuously improves efficiency and effectiveness by deploying the right. coaching for results. --Exercises strong influence in recruitment and selection process to ensure the right individuals for the role and the team.

Uses structured questioning skills and active listening to identify customer needs and to deliver solutions which match those needs . Call Sequence and Selling Process and has ability to recognize different people styles and to modify language and behaviour to reflect the individuals type. coaches Co.contd ‡ FLEXIBLE SALES PERSON Understands.

selectively auditing performance and encouraging people to self-assess and take their own initiatives to continuously improve . collecting only information that will be used.contd ‡ PERFORMANCE MANAGER Sustains focus and clarity by prioritizing performance measures.

Prioritises Learning --Creative Coach --Development Planner --Facilitator .contd ‡ COMMITTED PEOPLE DEVELOPER -.

contd ‡ MOTIVATIONAL LEADER --Assesses Motivation -.Housekeeper .Builds Self-Reliance -.

internal and external. demonstrates integrity and trustworthiness. maintains focus on brand building as the cornerstone of our success.Innovation Manager ‡ GUARDIAN OF THE CULTURE Leads by example in all of the above. promotes self-reliance and continuous improvement .Promotes Team Responsibility -.contd ‡ TEAMBUILDER -.

immediate superior & subordinates.Sales Job ‡ Job Analysis -objectives of selling job. -product to be sold -specifies duties & responsibilities. -reporting structure. . -interface with other functions.

. -description of selling job in brief.contd ‡ Job Description -tittle of sales job. -reporting relations of this job to other jobs. -job objectives -functions of selling job.

-some jobs require average literacy where others may require technical background. maturity to handle situation etc. -an important device to recruitment.contd ‡ Job Specification -qualifications .experience & age prescribed to perform job role. -personality characteristics necessary to perform job like capacity to take initiative . .