B.Sc, MBA, (PhD)
PART IINTRODUCTION TO       SALES MANAGEMENT
CHAPTER 1SALES MANAGEMENT:ITS NATURE, REWARDS, AND     RESPONSIBILITIES
LEARNING OBJECTIVESA career in sales management is exciting and unique andprovides numerous opportunities. This chapter wi...
IntroductionSales Management is defined as “the planning, direction and control of personal selling,including recruiting, ...
Nature and Importance of Sales Management1.         Sales management helps to achieve the organizational objectives.2.    ...
WHAT IS SALES             MANAGEMENT?Sales management is the attainment of sales forcegoals in an effective and efficient ...
FIGURE 1.1 THE SALES MANAGEMENT PROCESS                  Sales Management Functions
PLANNINGThe conscious, systemic process of makingdecisions about goals and activities that anindividual, group, work unit,...
FIGURE 1.1 THE SALES MANAGEMENT PROCESS                   Sales Management Functions
STAFFINGActivities undertaken to attract, develop, andmaintain effective sales personnel within anorganization.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS                   Sales Management Functions
SALES TRAININGThe effort put forth by an employer to provide thesalesperson job-related culture, skills, knowledge,and att...
FIGURE 1.1 THE SALES MANAGEMENT PROCESS                   Sales Management Functions
LEADINGThe ability to influence other people towardthe attainment of objectives.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS                   Sales Management Functions
CONTROLLINGMonitoring sales personnel’s activities,determining whether the organization is on targettoward its goals, and ...
FIGURE 1.1 IDEA OF THE SALES MANAGEMENT FUNCTIONS                    Sales Management Functions
SALES MANAGEMENT OBJETIVESSales VolumeContribution to ProfitsContinuing Growth
SALES EXECUTIVE FUNCTION & QUALTIESFUNCTIONS OF SALES EXECTIVE:1.OPERATING FUNCTIONS   2 PLANNING FUNCTIONS.OPERATING FUNC...
PLANNING FUNCTION:SETTING PERSONAL SELLING GOALFORMULATING SALES POLICIES AND PERSONAL SELLING STRTEGIESDESIGNING THE SALE...
QUALITIES OF SALES EXECTIVES:Ability to define the position’s exact functions and duties in relation to the goalsto a comp...
Salesmanship:It is the art of successfully persuading prospects or customers to buy products orservices from which they ca...
Differences between Salesmanship and              Personal Selling• Salesmanship                    • Personal Selling• Na...
Buyer-Seller Dyad:Sociologists use the term “dyad” to describe the situation wheretwo people interact.The interaction betw...
MAJOR PARTS OF AN    ORGANIZATIONAL SYSTEMOrganizational effectiveness is the degree to whichthe organization achieves a s...
FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY                                  CEO                       ...
FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIESBY ORGANIZATIONAL LEVEL       Top Managers                    ...
FIGURE 1.5 A SALES PERSONNEL CAREER PATH                                                                                  ...
SALES MANAGEMENT SKILLS1. CONCEPTUAL AND DECISION SKILLSRefer to the cognitive ability to see the organization as awhole a...
PROMOTION FROM SALESPERSON    TO SALES MANAGERChanges that occur when a person becomes a newmanager:  1.  2. Goals change ...
FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICALSKILLS TO SALES LEADER LEVEL                     ...
THE PROMOTION EXPERIENCEPhase One – ImmobilizationPhase Two – Minimization or Denial of ChangePhase Three – DepressionPhas...
PROBLEMS NEW MANAGERS EXPERIENCE  • Lack of preparation for the job.  • Expected to step into the job and    immediately f...
MAKING A SUCCESSFUL TRANSITION TOMANAGEMENT   • Have a learning attitude – a     willingness to learn, change, adapt,     ...
THE BOTTOM LINESkilled sales managers are the key to a successful organization.Sales managers have five functions that, wh...
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Sales management by gururaj

  1. 1. B.Sc, MBA, (PhD)
  2. 2. PART IINTRODUCTION TO SALES MANAGEMENT
  3. 3. CHAPTER 1SALES MANAGEMENT:ITS NATURE, REWARDS, AND RESPONSIBILITIES
  4. 4. LEARNING OBJECTIVESA career in sales management is exciting and unique andprovides numerous opportunities. This chapter will dothe following: Provide you with an overview of a sales manager’s job. Introduce you to the various types of sales managers and the skills required of them. Discuss what a new manager experiences when promoted from a sales job.
  5. 5. IntroductionSales Management is defined as “the planning, direction and control of personal selling,including recruiting, selecting, equipping, assigning, routing, supervising, paying andmotivating as these tasks apply to the personal sales force”. -Definition Committee of the American Marketing Association.Sales force is responsible for the sale of products of a company and to add profit to the businessoperations and fulfill social obligations. Sales force should be hardworking, result oriented, welleducated and competent to handle changing situations. Technical developments which are takingplace at a rapid speed have made the task of sales force more challenging.
  6. 6. Nature and Importance of Sales Management1. Sales management helps to achieve the organizational objectives.2. The main objectives of sales management is that products should be sold at that price which realizes profits.3. Buyers and sellers both have same types of business relationships. This relationship is based on exchange of goods, services and money.4. Sales person develops a positive relationship with the customers. The role of sales team is interdependent and success of one team member depends on the other.5. The sales team continuously monitor the customer preference, competitors‘ situation, government policy and other regulatory bodies.
  7. 7. WHAT IS SALES MANAGEMENT?Sales management is the attainment of sales forcegoals in an effective and efficient manner through: • Planning • Staffing • Training • Leading • Controlling organizational resources
  8. 8. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  9. 9. PLANNINGThe conscious, systemic process of makingdecisions about goals and activities that anindividual, group, work unit, or organization willpursue in the future and the use of resourcesneeded to attain them.
  10. 10. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  11. 11. STAFFINGActivities undertaken to attract, develop, andmaintain effective sales personnel within anorganization.
  12. 12. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  13. 13. SALES TRAININGThe effort put forth by an employer to provide thesalesperson job-related culture, skills, knowledge,and attitudes that result in improved performancein the selling environment.
  14. 14. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  15. 15. LEADINGThe ability to influence other people towardthe attainment of objectives.
  16. 16. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  17. 17. CONTROLLINGMonitoring sales personnel’s activities,determining whether the organization is on targettoward its goals, and making corrections asnecessary.
  18. 18. FIGURE 1.1 IDEA OF THE SALES MANAGEMENT FUNCTIONS Sales Management Functions
  19. 19. SALES MANAGEMENT OBJETIVESSales VolumeContribution to ProfitsContinuing Growth
  20. 20. SALES EXECUTIVE FUNCTION & QUALTIESFUNCTIONS OF SALES EXECTIVE:1.OPERATING FUNCTIONS 2 PLANNING FUNCTIONS.OPERATING FUNCTIONS:•SALES FORCE MANAGEMENT.•HANDLING RELATIONSHIP WITH COMPANY AS WELL AS MARKETINGCHANNELS•COMMUNICATING AND COORDINATING WITH OTHER MARKETINGEXECUTIVES AND REPORTING TO SOME SUPERIOR EXECUTIVES SUCH ASVICE PRESIDENT- MARKETING. .
  21. 21. PLANNING FUNCTION:SETTING PERSONAL SELLING GOALFORMULATING SALES POLICIES AND PERSONAL SELLING STRTEGIESDESIGNING THE SALES PROGRAMMESCONTROLLING SALES ACTIVITIES LIKE SALES VOLUME, SELLINGEXPENSESFUNCTIONS OF THE SALES EXECTIVES DEPEND ON:THE TYPE OF THE PRODUCTTHE SIZE OF THE COMPANYTHE TYPE OF SUPERVISORY ORGANIZATION.
  22. 22. QUALITIES OF SALES EXECTIVES:Ability to define the position’s exact functions and duties in relation to the goalsto a company should expect to attain.Ability to select and train capable subordinates and willingness to delegatesufficient authority to enable them to carry out assigned tasks with minimumsupervision.Ability to utilize time efficientlyAbility to allocate sufficient time for thinking and planning.Ability to exercise skilled leadership
  23. 23. Salesmanship:It is the art of successfully persuading prospects or customers to buy products orservices from which they can derive suitable benefits there by increasing theirtotal satisfactions.Personal Selling:Personal selling refers to personalcommunication with a an audiencethrough paid personnel of anorganization or its agents insuch a way that the audienceperceives the communicator’sorganization as being the sourceof the message.
  24. 24. Differences between Salesmanship and Personal Selling• Salesmanship • Personal Selling• Narrow Concept • Broader Concept• This involves only selling of • Personal selling is meant for the product or service. implementing marketing• Salesmanship skills are used programs. in personal selling.• It’s a persuading activity.
  25. 25. Buyer-Seller Dyad:Sociologists use the term “dyad” to describe the situation wheretwo people interact.The interaction between sales person and prospect(or customer) isknown as “Buyer-Seller Dyad”
  26. 26. MAJOR PARTS OF AN ORGANIZATIONAL SYSTEMOrganizational effectiveness is the degree to whichthe organization achieves a stated objective.Organizational efficiency refers to the amount ofresources used to achieve an organizational goal.
  27. 27. FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY CEO President T o p S a le s L e a d e r s (S tr a te g ic ) Vice President of Marketing National Sales Leader M id d le S a le s Zone Sales Leader L ead ers (T a c tic a l) Regional Sales Leader F ir s t - L in e District Sales Leader S a le s L e a d e r s Assistant District Sales Leader ( O p e r a t io n a l) Nonmanagerial Salespeople Sales Trainee Salesperson Key Account
  28. 28. FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIESBY ORGANIZATIONAL LEVEL Top Managers P la n n in g S ta f f in g T ra in - L e a d in g C o n t r o llin g in g 35% 10% 5% 30% 20% Middle Managers P la n n in g S t a f f in g T r a in in g L e a d in g C o n t r o llin g 28% 10% 10% 30% 22% First-Line Managers P la n n in g S ta f f in g T r a in in g L e a d in g C o n t r o llin g 15% 20% 25% 25% 15%
  29. 29. FIGURE 1.5 A SALES PERSONNEL CAREER PATH President Vice President of Marketing National Sales Mgr. Zone Sales Manager Regional Sales Manager District Sales Manager Key Account Salesperson Salesperson Sales Trainee
  30. 30. SALES MANAGEMENT SKILLS1. CONCEPTUAL AND DECISION SKILLSRefer to the cognitive ability to see the organization as awhole and the relationships among its parts.2. PEOPLE SKILLSInvolve the ability to work with and through other people andto work effectively as a group member.3. TECHNICAL SKILLSThe ability to perform a specialized task that involves a certainmethod or process.
  31. 31. PROMOTION FROM SALESPERSON TO SALES MANAGERChanges that occur when a person becomes a newmanager: 1. 2. Goals change 3. Responsibilities change 4. Satisfaction changes 5. Job skill requirements change 6. Relationships change
  32. 32. FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICALSKILLS TO SALES LEADER LEVEL C o n c e p tu a l a n d P e o p le S k ills T e c h n ic a l S k ills D e c is io n S k ills T o p S a le s L e a d e r s M id d le S a le s L e a d e r s F ir s t - L in e S a le s L e a d e r s N o n m a n a g e r ia l S a le s p e o p le
  33. 33. THE PROMOTION EXPERIENCEPhase One – ImmobilizationPhase Two – Minimization or Denial of ChangePhase Three – DepressionPhase Four – Acceptance of RealityPhase Five – TestingPhase Six – Searching for MeaningsPhase Seven – Internalization
  34. 34. PROBLEMS NEW MANAGERS EXPERIENCE • Lack of preparation for the job. • Expected to step into the job and immediately function effectively. • Often lacks an immediate peer group.
  35. 35. MAKING A SUCCESSFUL TRANSITION TOMANAGEMENT • Have a learning attitude – a willingness to learn, change, adapt, and seek help when needed. • Having realistic expectations. • Leave the old job behind.
  36. 36. THE BOTTOM LINESkilled sales managers are the key to a successful organization.Sales managers have five functions that, when combined, canallow them to achieve the goals desired by higher levels ofmanagement.The various types of sales managers can be broken down into thecategories of vertical and horizontal.Most corporations hire a person who cannot only sell but whoalso shows the potential to one day become a sales manager.

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