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Flow of Presentation
• Meaning and Objectives of Sales Management • Role of Sales Manager • Sales Management and Marketing Management Relationships • Sales Department‟s external relations
• Types of Sales Organization Structure
• Centralization and De- centralization of Sales Force Management
“Personal Selling involves oral presentation in a conversation with one or more prospective purchaser for the purpose of making sales” • It is the direct face. Sales Promotion etc.to.Personal Selling • According to Philip Kotler. .face communication between a seller and a potential customer • It is a form of two.way communication unlike Advertising.
Sales Management • Sales Management is an integral sub.system of Marketing Management • Sales Management is the administration of the personal selling activities of the organization • In a modern organization. Sales Management centers around the management of sales force and sales efforts .
equipping. including recruiting. routing. assigning. supervising. selecting. direction. paying and motivating as these tasks apply to the personal sales force” • Sales Management refers to “planning the personal selling effort. organizing the sales personnel and developing a winning sales team” • Brech defined Sales Management as “the overall management of sales and it refers to only a specialized application of the process of management as a whole” .Definition of Sales Management • The American Marketing Association defines Sales Management as “the planning. and control of personal selling.
Sales Management V/s Sales force Management • Modern Sales Managers have broader responsibilities than just managing the sales force • Even though their primary responsibility is management of the personal sales force.related responsibilities of Sales Managers as “Sales force Management” • In other words. „Sales force Management‟ is just a part of „Sales Management‟ . that do not comprise their total responsibility • So we call the personnel.
products at the right time. Continuing growth • The following are the most important duties and responsibilities of a Sales Manager: a) Planning the personnel selling effort: Determine precisely the place of personal selling in the marketing mix of the firm and to set the personal selling objectives b) Merchandising: is defined as planning to offer the right . in the right quantities.Objectives/ Functions/ Responsibilities / Role of Sales Management/ Sales Manager • From the company viewpoint. Sales Management has 3 general objectives: 1. and at the right price . and. 3. Contribution to profits. Sales volume 2.
supervision. motivation and control e) Distribution channels: The Sales Manager has to select proper channels of distribution and maintain good relations with distributors and dealers f) Financing the sales: The Sales Manager is responsible for providing and managing funds for marketing . selecting and training the sales force.Objectives/ Functions/ Responsibilities / Role of Sales Management/ Sales Manager c) Marketing research: Sales Manager has to organize and manage marketing research projects d) Developing a winning sales team: Sales Manager is responsible for recruiting. its compensation.
maintain and extend the consumer demand .Objectives/ Functions/ Responsibilities / Role of Sales Management/ Sales Manager g) Building the sales organization: The Sales Managers are required to ensure that the sales organization (sales department) is maintained in trim condition and capable of effectively implementing the personal selling program of the firm h) Sales Promotion and Advertising: The Sales Manager is responsible for advertising and sales promotion to create.
Narrow in scope Marketing 1. External. Wider in scope . Emphasis is on the customer’s needs 2. Emphasis is on the buyer’s needs 4.company (seller) orientation 3.market (customer) orientation 3.Selling V/s Marketing Selling 1. Emphasis is on the product 2. Internal. Emphasis is on the seller’s needs 4.
Stanton.Sales Management and Marketing Management Relationships • According to Philip Kotler. and communicating superior customer value” • According to William J. keeping. and growing customers through creating. “Marketing management is the art and science of choosing target markets and getting. delivering. Marketing Management is the marketing concept in action” • Marketing Management is a wider term and it includes Sales Management also • Sales Management refers to the overall management of sales .
Concept: MM is a modern concept while SM is an old concept 3. SM is a narrow term and is a part of MM 5. the object of SM is to maximize sales with emphasis on volume 4. Meaning: Write the definitions of both MM and SM (Already given) 2. Performance of Activities: The activities of MM are superior while the activities of SM come under the jurisdiction of MM .Sales Management V/s Marketing Management 1. Object: The object of MM is to satisfy the needs of the consumers and thereby maximize the profit of the concern. On the other hand. Scope: MM is a broad term and includes SM.
Industry Relations 3. Educational Relations 5. Final Buyer Relations 2. Press Relations • Refer Page 216 of Cundiff Still Text .Sales Department‟s External Relations 1. Government Relations 4.
Functional Sales Organization 4. Line Sales Organization 2.Types of Sales Organization Structure • The basic types of sales organization structures are: 1. Line and Staff Sales Organization 3. Committee Sales Organization .
such as production. Line Sales Organization • It is the oldest and simplest sales organizational structure. finance. • It usually consists of only a few managers. who exercise authority over specific functional areas of the business. or sales • Refer Diagram on Page 191 of Cundiff and Still Text . • It is often used by small firms.Types of Sales Organization Structure 1.
employing substantial number of sales personnel. and selling diversified product lines over wide geographic areas • It creates more functional areas • Refer Diagram on Page 194 of Cundiff and Still Text .Types of Sales Organization Structure 2. Line and Staff Sales Organization • It is often found in large and medium.sized firms.
Functional Sales Organization • The principle of specialization is utilized to the full extent in Functional Sales Organization • The staff specialist is given line authority to control his or her function throughout the organization • Refer Diagram on Page 196 of Cundiff and Still Text .Types of Sales Organization Structure 3.
his or her assistants. Committee Sales Organization • Many firms have a sales training committee comprised of the general sales manager. • It meets periodically to draft training plans and formulate sales training policies . the sales training manager etc.Types of Sales Organization Structure 4.
almost all the activities including sales force management. selecting. all these activities are handled by field sales executives . compensating. training.Centralization and Decentralization of Sales Force Management • In the centralized sales organization. and evaluating the sales force • In the decentralized organization. motivating. controlling. supervising. are administered from a central headquarters • The central sales office has full responsibility for recruiting.
Links selling with sales promotion and advertising 2. Reduces bias in the hiring process . Simplifies administrative work 3. Makes it easier to organize territories 4.Centralization and Decentralization of Sales Force Management Advantages of centralization 1. Aids in the effectiveness of the sales plan 5.
Reduces time to work closely the salespeople in the field 4. Increases geographical differences in preferences .making authority to individuals who may be hundreds or thousands of miles away from the action 2. Limits understanding of territorial conditions 3. Assigns decision.Centralization and Decentralization of Sales Force Management Disadvantages of centralization 1.
Increases in.depth coverage of the market. Reduces the need for territorial break. which will lead to more sales 5. Improves salespeople’s attitudes because of the reduction in travel time and fewer nights away from home 7. resulting in increased sales 3. Improves customer services.Centralization and Decentralization of Sales Force Management Advantages of decentralization 1. Reduces travel expenses . resulting in higher sales 2. Improves direction of the sales force in creating greater sales 4. as salespeople are from the area 6. Increases control of the market.in time.
Attempting to follow the plans from the main office creates management problems where geographical differences are important • Refer Page 198 of Cundiff Still Text .Increased costs resulting from a duplication of overhead costs at each branch 2.Centralization and Decentralization of Sales Force Management Disadvantages of de-centralization 1.
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