Sales managementThe only business function thatgenerates revenue.
WHY? Market is too big Competitors are too big Customers are everywhere Opportunities are immense Ambitions are limitless and…… u r not RAVAN
What is the Animal all about Revenue Generation (Sales Earning) Revenue Delegation (Sales Organisation) Revenue Continuation (Sales Motivation) Revenue Detection (Sales Monitoring) Revenue Collection (Sales Accruals) Revenue Retention (Sales Force continuum)Planning, direction and control of personal selling including recruiting, selecting, training, equipping, assigning, supervising, compensating and motivating as these tasks apply to the personal sales force.
Sales Organisation determinants Type of Market Geographic and Demographics (Pharma, FMCG sales) Type of Product Consumer Products Customer Products Industrial Products
Sales organization With various tasks required to be performed the enterprise had to create a structure to ensure that work is done. Principles of structure: authority, responsibility, performance, support/co- ordinate.
Purpose of organization Eliminate waste of effort Minimize friction Maximize co-operation Permit development of specialists Define authority Fix responsibility
Types of organizationstructures Line organization: line managers perform sales and sales management activities. Functional organization: focus is on the principle of specialization. Each specialist has a functional responsibility and are permitted to direct and control the salesperson thru their immediate superior.
Line Sales Organization structure Head –Marketing Sales ManagerArea Sales Mgr Area Sales Mgr Area Sales Mgr Area Sales Mgr Sales Force Sales Force Sales Force Sales Force Clear authority & Responsibility Quick response & Decision, Low Cost Weak on marketing inputs Sales manager controlled
Functional Sales Organization Administrative Simplicity Access to Specialists Multiple reporting HOD is Pressures to co-ordinate
The sales budget A budget is a quantitative expression of plans. Most well managed enterprises use a budget which is a comprehensive and coordinated plan for the operations and resources of the enterprise. It is a formal and intricate process Approaches are either incremental or zero based. In a volatile economic climate organizations estimate optimistic, realistic and pessimistic scenarios.To the sales department, the budget is a blue print for making sales. It involves money invested in distribution facilities, promotion efforts, and sales personnel. It is the foundation on which to plan sales objectives and the means of achieving them during the coming year.
Sales budgetCritical factors considered:1. past trends2. Sales force estimates3. Trade prospects4. Present scenario5. Customers: existing and potential6. Government policies7. Industry environment
Number of sales people Decision on the size of the sales force is very complicated because structure of the customers vary in each territory, the level of competition varies across territories, the connectivity for travel varies etc. There are 3 generally accepted approaches: affordability, incremental and workload methods.
Sales Force RecruitmentTYPES OF SALES GUYS Dog – Smells the business Elephant – Pounds everyone around Shark – Screws up Competition Giraffe – Over the topLOOK AT THE OBJECTIVE AND PICK PEOPLE Quality v/s Loyalty Growth v/s Incentives Partner v/s Employee
Recruitment Sources Competition Referrals Staffing Agencies Friends and Families
Sales Training SHARE YOUR DREAM – Vision Illustratiion SHARE YOUR PLANS SHARE YOUR PRODUCTS SHARE YOUR CHARTS BUILD HIS DREAMS – Incentives BUILD HIS CAREER – Organisation Chart BUILD HIS CHARACTER – interest in his personal space
Sales SegmentationTypes …. Geographic Territory (FMCG) Product Territory (pharma) Functional Territory (industrial products)Define Sales Territories to…. Increase / improve customer coverage Control selling expenses Effective evaluation of salesman’s performance. improve customer relationsA sales territory consists of existing and potential customers assigned to a sales person. The territory may or may not have geographic boundaries.
Sales Target Setting WHY…. To help management motivate sales people. To direct sales people where to put there efforts. To provide standards of performance evaluation S-specific M-measurable A-achievable R-realistic Value Targets T-time bound Volume Targets Product Targets Client/Account Targets Market Share TargetsTargets are quantitative goals assigned to individual sales persons for a specified period of time.
Sales Force Motivation Drive to initiate an action. The intensity of effort in an actionWhy motivation The persistence of effort over Frequent rejection Physical separation from company support Direct influence on quality of sales presentation Indirect influence on performance
Sales force motivation “the desire to make an effort to fulfill a need is motivation” Motivation includes three dimensions: Direction, Intensity and persistence. Motivation may also be Intrinsic or extrinsic
Maslow’s theory Intense job challenge, full potential, FULL EXPRESSION, creative expansion. Self Actualisation respect, recognition, prestige, Esteem needs independence, attention, IMPORTANCE, Belonging, ACCEPTANCE, love, Social needs affection, friendships. Safety needs SECURITY, stability, dependency, protection Physiological needs Hunger, thirst, reproduction, shelter, clothing, air, REST.Food, clothing, shelter, health care
Sales Monitoring Annual Target Meetings Monthly Review Meets On Field Visits Dealer/Client Feedback Competition Reports
Sales Force Retention Incentivise Recognise Socialise Apprise Prioritise
HAPPY SELLING “remember, money is not everything ………but its not short of everything”