Sales management
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Sales management Presentation Transcript

  • 1. Sales Management 1
  • 2. Sales Management1. Sales – Cost of Sales = Gross Margin 2
  • 3. Sales Management1. Sales – Cost of Sales = Gross Margin GM – Expenses = Net Profit 3
  • 4. Sales Management1. Sales – Cost of Sales = Gross Margin GM – Expenses = Net Profit2. Volumes vs Profits 4
  • 5. Sales Management1. Sales – Cost of Sales = Gross Margin GM – Expenses = Net Profit2. Volumes vs Profits3. Marketing vis-à-vis Sales 5
  • 6. 4. Responsibilities Sales Planning / Budgeting Estimating Demand / Forecasting Sales Understanding the Sales Organization Recruiting / Training Selecting Sales Force Compensating / Motivating / Leading Sales Quotas Analyzing Sales Cost / Volume / Profit Evaluating Sales Force 6
  • 7. 5. Recent Trends in Sales Management Foreign Competition 7
  • 8. 5. Recent Trends in Sales Management Foreign Competition Rising Customer Expectations 8
  • 9. 5. Recent Trends in Sales Management Foreign Competition Rising Customer Expectations Increasing Buyer Expertise 9
  • 10. 5. Recent Trends in Sales Management Foreign Competition Rising Customer Expectations Increasing Buyer Expertise IT & Communications 10
  • 11. 5. Recent Trends in Sales Management Foreign Competition Rising Customer Expectations Increasing Buyer Expertise IT & Communications Women in Sales Careers 11
  • 12. 5. Recent Trends in Sales Management Foreign Competition Rising Customer Expectations Increasing Buyer Expertise IT & Communications Women in Sales Careers Controlling Costs 12
  • 13. Effective Sales ExecutiveWhat does he do? 13
  • 14. Effective Sales ExecutiveWhat does he do?i. Operating Functionii. Planning Function 14
  • 15. Planning Function Selling Accounts Sales Force Management Coordinating with other functions Dealer Handling Communicating / Coordinating with Marketing Sets Personal Selling Goals Sales Organization Selling Strategies Staffing, Developing Skills Providing Leadership Developing Sales Programs Customer / Dealer Relationships 15
  • 16. The Effective Sales ExecutiveWho is an effective sales executive? 16
  • 17. The Effective Sales ExecutiveWho is an effective sales executive? Defines exact function & duties of person vis-à-vis company goals 17
  • 18. The Effective Sales ExecutiveWho is an effective sales executive? Defines exact function & duties of person vis-à-vis company goals Able to select & train capable subordinates & delegates authority – empowerment – least supervision 18
  • 19. The Effective Sales ExecutiveWho is an effective sales executive? Defines exact function & duties of person vis-à-vis company goals Able to select & train capable subordinates & delegates authority – empowerment – least supervision Time utilization Time for thinking & planning Time for office / field 19
  • 20. The Effective Sales ExecutiveWho is an effective sales executive? Defines exact function & duties of person vis-à-vis company goals Able to select & train capable subordinates & delegates authority – empowerment – least supervision Time utilization Time for thinking & planning Time for office / field Act as skilled leaders, motivate people 20
  • 21. InterrelationshipsTop Management Integrate personal goals with organization Don’t aim to be indispensable; delegate authority Good problem solvers & decision makers Keep management involved Listens & keeps record of important conversations Follows given code of conduct 21
  • 22. Product ManagementRegular involvement for new products, productquality, services rendered 22
  • 23. Pricing ManagementSince sales has the pulse of the market policies are co- operative decisions. 23
  • 24. Distribution ManagementMarketing channels determine the pattern of sales force operations – the no. of outlets. 24
  • 25. Promotion Management SEs implement promotional plans. Personal selling is an important promotional tool, expenses have to be controlled. Provide important information to advertising department regarding consumers, motives, behaviours 25
  • 26. Sales Planning1. Setting Objectives a) Internal Situation Analysis  SWOT of Sales Force  Who will sell, what selling methods, what sales tools, what are available 26
  • 27. Sales Planning1. Setting Objectives a) Internal Situation Analysis  SWOT of Sales Force  Who will sell, what selling methods, what sales tools, what are available b) External Environment Audit  PEST Analysis  Competition 27
  • 28.  Sales objectives derived from broader Marketing objectives / Corporative objectives. 28
  • 29.  Sales objectives derived from broader Marketing objectives / Corporative objectives. Must align with corporate vision 29
  • 30.  Sales objectives derived from broader Marketing objectives / Corporate objectives. Must align with corporate vision Set at various levels: Macro (Country / Geographic region): Micro (Key accounts) 30
  • 31.  Sales objectives derived from broader Marketing objectives / Corporative objectives. Must align with corporate vision Set at various levels: Macro (Country / Geographic region): Micro (Key accounts) Long Term vs Short Term, Accuracy decreases over long periods … 31
  • 32.  Sales objectives derived from broader Marketing objectives / Corporative objectives. Must align with corporate vision Set at various levels: Macro (Country / Geographic region): Micro (Key accounts) Long Term vs Short Term, Accuracy decreases over long periods … Output oriented: ‘Increase Sales’ (X) Increase Sales by 10% 32
  • 33.  Sales objectives derived from broader Marketing objectives / Corporative objectives. Must align with corporate vision Set at various levels: Macro (Country / Geographic region): Micro (Key accounts) Long Term vs Short Term, Accuracy decreases over long periods … Output oriented: ‘Increase Sales’ (X) Increase Sales by 10% Measurable: ‘X’ no. of calls / month … How to measure soft objectives?? Morale? 33
  • 34. 2. Determining Operations to meet Objectives  Decide on Sales Strategies SS: Operations which organize & direct sales activities to help achieve objectives 34
  • 35. 2. Determining Operations to meet Objectives  Decide on Sales Strategies SS: Operations which organize & direct sales activities to help achieve objectives  Strategy for each objective …. In Sync. with Corporate Objective …. 35
  • 36. 2. Determining Operations to meet Objectives  Decide on Sales Strategies SS: Operations which organize & direct sales activities to help achieve objectives  Strategy for each objective …. In Sync. with Corporate Objective …. ‘Build’ – Emphasis on new / current A/cs Increase Sales ‘Hold’ – Consolidating relationships to improve organizational image ‘Harvest’ – Reduce overall operation costs Sales directed to most profitable customersObjectives & strategies: corporate / sales have to be broken into individual sales objectives. 36
  • 37. 3. Organizing for Action Next Step: Objectives – tactics 37
  • 38. 3. Organizing for Action Next Step: Objectives – tactics  Which customers to target?  Which products to highlight in range? 38
  • 39. 3. Organizing for Action Next Step: Objectives – tactics  Which customers to target?  Which products to highlight in range?  How is sales department working? 39
  • 40. 3. Organizing for Action Next Step: Objectives – tactics  Which customers to target?  Which products to highlight in range?  How is sales department working?  Is compensation plan suitable? Is it in sync. with industry average? 40
  • 41. 3. Organizing for Action Next Step: Objectives – tactics  Which customers to target?  Which products to highlight in range?  How is sales department working?  Is compensation plan suitable? Is it in sync. with industry average?  How to introduce a new product line. 41
  • 42. 4. Implementing Two fold role of Sales Manager a) Division of responsibilities among salespeople; tasks; time sequence; Review Schedule b) Communicate to and coach sales people to implement sales strategies and actions 42
  • 43. 5. Measuring Results Against Standards i. Establish Standards ii. Measure Performance iii. Reevaluate and correct variations from standards 43
  • 44. 5. Measuring Results Against Standards i. Establish Standards ii. Measure Performance iii. Reevaluate and correct variations from standardsPerformance standards needed to measure results: Industry averages, past sales force performance 44
  • 45. 5. Measuring Results Against Standards i. Establish Standards ii. Measure Performance iii. Reevaluate and correct variations from standardsPerformance standards needed to measure results: Industry averages, past sales force performancePerformance measures: Sales volumes, selling costs, market shares, profit margins 45
  • 46. 6. Re-evaluating and Control Can start mid way during implementation of sales plan or at the end Monitored constantly for effective control and to see objectives are met (annual target 10 crores: 2.5 per quarter) 46
  • 47. Why does planning fail?1. Lack of understanding of important issues: Sales objective different from corporate objective….., SM planning without reference to abilities of sales force, Environmental changes…., Inadequate understanding of competitors policies / organization strength and weaknesses etc. 47
  • 48. Why does planning fail?1. Lack of understanding of important issues: Sales objective different from corporate objective….., SM planning without reference to abilities of sales force, Environmental changes…., Inadequate understanding of competitors policies / organization strength and weaknesses etc.2. Absence of proper planning: SMs: May developed plan which are only numbers and don’t focus on company issues, extra knowledge environment competition. 48
  • 49. Why does planning fail? (Contd..)3. Inadequate communication 49
  • 50. Why does planning fail? (Contd..)3. Inadequate communication4. Lack of sales force involvement: If sales people are not involved during planning, they are demotivated 50
  • 51. Why does planning fail? (Contd..)3. Inadequate communication4. Lack of sales force involvement: If sales people are not involved during planning, they are demotivated5. Inaccuracy in sales planning Mistakes in forecasting, budgeting and territory management; plans more accurate with bottoms – up approach; objectives should be set by top management and supported by sales managers 51