NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
srm
1. SALES AND RETAIL
MANAGEMENT
PART – A
SALES MANAGEMENT
MODULE - 1
Introduction to sales management:
Meaning, Evaluation, Importance, Personal Selling, Emerging
Trends in Sales Management, elementary study of sales
organizations, qualities and responsibilities of sales manager.
Types of sales organisations.
Faculty: Krupa Joshi
2. BOOKS:
SalesManagement by Charlesm. Futrell,
6/e, 2003, Thomson South Western
Sales
& Distribution Management by
Tapan K. Panda & Sunil Sahadev, 6/e,
Oxford University Press
3. INTRODUCTION
Any organisations large or small are into selling something
or the other for their survival and growth. It may be a
product, service, idea, concept, destination or person.
Robert Louis Stevenson said ‘everybody is surviving on
selling something to someone’.
Sales management is attainment of an organization's sales
goals in an effective & efficient manner through planning,
staffing, training, leading & controlling organizational
resources. Revenue, sales, and sources of funds fuel
organizations and the management of that process is the
most important function.
4. MEANING
Sales Management’ originally referred exclusively to the
direction of sales force personnel.
American Marketing Association – “Sales Management is the
planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising, p
aying and motivating as these tasks apply to the personal sales
force.
Charles M. Futurell – “Sales Management is the attainment of
sales force goals in an effective and efficient manner through
planning, staffing, training, leading, and controlling
organizational resources.
5. A SALES PERSON’S POSITION
A sales person’s job is predominantly to deliver a product
A salesperson is predominantly an internal order taker
A salesperson is also predominantly an order taker but works in the
field
A salesperson is not expected or permitted to take an order but is called
only to build goodwill or to educate an potential or actual user
Positions where the emphasis is placed on technical knowledge
Positions which demand the creative sale of tangible products
Positions which requiring the creative sales of intangible
products/services
6. SMALL IMPROVEMENTS IN YOUR TEAM’S SKILLS AND PROCESSES
Best Case Neutral Case Worst Case
Your sales team isn’t
Your sales team is a
strong. They may not have
revenue machine. They
There are strong and weak a dedicated sales manager
have the right skills and
players on the sales team. to help improve
experience; they’re
Some require a lot more performance. They may not
motivated to come in each
hand-holding than you’d have enough experience,
day and close business. You
like; there isn’t always time especially if you’re a small
coach them regularly to
to give them the help they company that can’t yet
improve their performance.
need. As a result, their close afford the big hitters. You
When problems arise,
ratios are much lower. have a pipeline but don’t
they’re dealt with swiftly.
They’re probably not know what’s happening
The sales team does a great
hitting their quotas, but with prospects; it takes
job delivering the
they’re not a major liability longer than it should to
company’s value
to the company. close deals. You suspect
proposition, brand strategy
your need an entirely new
and messages.
sales operation.
7. EVOLUTION OF SALES MANAGEMENT
There were fewer than 1,000 travelling sales people before 1860 in the US
who were basically credit investigators and took orders for goods
The techniques of modern sales management and selling techniques were
refined by John Henry Patterson, widely known as the father of modern
sales management
Mr. Patterson assigned to his salesperson’s exclusive territories and sales
quotas in order to stretch their efforts. He asked his best salespeople to
demonstrate their sales techniques to other sales people.
Thomas J. Watson was trained by Mr. Patterson who later founded the IBM.
Today the process of sales management has undergone numerous changes in
terms of strategy, practice, and technological adoption to achieve the desired
sales goal.
8. SALES MANAGEMENT PROCESS
FORMULATION OF A STRATEGIC SALES
MANAGEMENT PROGRAMME:
The strategic sales programme should consider the
environmental issues affecting the business. It should
organize and plan the company's overall personal selling
efforts and integrate these with the other elements of the
firm's marketing strategy.
IMPLEMENTATION OF A STRATEGIC SALES
MANAGEMENT PROGRAMME:
It involves selecting appropriate sales personnel, training
them leading them and motivating them, designing and
implementing of policies and procedures that will direct
the efforts of the sales people towards achieving corporate
objectives.
EVALUATION AND CONTROL OF SALES FORCE
PERFORMANCE:
It involves developing methods and practice for
monitoring and evaluating the individual and group
sales force performance. this entails taking corrective
steps either in formulation or in implementation
programs to achieve the desired corporate goal.
9. FORMULATION OF STRATEGIC SALES PROGRAMME
THE ENVIRONMENT
The External Environment The Internal Environment
Potential Customers Objectives and Missions
Competition, Legal and Political Environment Human Resources, Financial Resources
Technological Environment Capacity Utilization and Production
Natural Resource Processes , Innovation cycles and research
Social and Cultural Environment and development activities
Marketing Strategy
Product and Product Lines
Pricing Policy, Distribution Strategy
Promotion Policy, Advertising and Sales Promotion
Sales Management Functions
Sales Force
Account Sales Planning, Sales Force Deployment, Territory
Management Forecasting and Organization Design, and route
Policy quota setting Planning
10. IMPLEMENTATION OF THE STRATEGIC SALES PROGRAMME
Determination of the sales
people’s Performance
Sales
Management Outcomes
Functions
Sales person’s view of
job requirements, role
Supervision perception
Environmental
Variable Performance
Sales Volume
Quota Allocation
Selection and
Recruitment of Selling Expenses
Sales Personnel Aptitude Profitability of
Customer
Level of Customer
Sales Training Service
Skills
Sales Reports
Motivating the Sales Ethical Practices
Force Compensation
Motivation
System Reward
System Level
12. SALES MANAGEMENT FUNCTIONS
Planning : Building a profitable customer oriented sales
team
Staffing : Hiring the right people to sell and lead
Training : Educating sales personnel to satisfy customer
Leading : Guiding average people to perform at above
average levels
Controlling : Evaluating the past to guide the future
14. FUNCTIONS OF SELLING
Order Taker
Inside Order Taker
Delivery Salespeople
Outside Order Taker
Order Creator
Missionary Salespeople
Order Getters
Front Line Salespeople
New Business Salespeople
Organizational Salespeople
Consumer Salespeople
Sales Support Salespeople
Technical Support Salespeople
Merchandisers
15. IMPORTANCE OF SALES MANAGEMENT
Sales force advantage
Personal selling as promotion method
Customization of product, service, concept, idea,
person
Customer satisfaction level
Direct indirect marketing communication
16. THE NATURE AND ROLE OF SALES MANAGEMENT
Determining Sales force objectives and goals
Finalizing sales force organization, size, territory, and
quota
Forecasting and budgeting sales
Selecting, recruiting, and training to the sales force
Motivating and leading the sales force
Designing compensation plan and control systems
Designing career growth plans and building relationship
strategies with key customers
17. PERSONAL SELLING
Personal selling can be broadly classified into
industrial, retail, and service selling. The approaches
that a sales person takes in each of these categories
vary despite similarities in the sales function. The
selling approaches are bound to be different in each of
the buying situations.
Personal selling involves selling a product or service
on a one to one basis. This can either be done face to
face or over the phone
18. TYPES OF PERSONAL SELLING
Auctions
Sealed bid sales
Spot bids
Contract sales and service contracts
Negotiated sales
Fixed-price sales
Industrial Selling
Retail Selling
Service Selling
19. PERSONAL SELLING AS A PART OF THE
PROMOTIONAL PROGRAM
Personal selling refers to the presentation of goods and
services before the customers and convincing or
persuading them to buy the products or services.
Personal selling is a promotional method in which one
party (e.g., salesperson) uses skills and techniques for
building personal relationships with another party (e.g.,
those involved in a purchase decision) that results in
both parties obtaining value
20. PERSONAL SELLING CONSISTS OF THE FOLLOWING
ELEMENTS:
Face-to-Face interaction
Persuasion
Flexibility
Promotion of sales
Supply of Information
Mutual Benefit
21. DIFFERENCE BETWEEN SELLING AND MARKETING
SELLING MARKETING
Emphasis on Product Emphasis on consumer needs and wants
Company Manufactures the Product first Company first determines customers needs
and then decides to sell it and wants and then decides on how to
deliver a product to satisfy these wants
Management is sales volume oriented Management is profit oriented
Planning is short term oriented, in terms of Planning is long term oriented, in terms of
today’s products and markets new products tomorrows markets, and
future growth
Stresses needs of a seller Stresses needs and wants of buyers
Views business as a goods producing Views business as a consumer satisfying
process process
Emphasis on staying with existing Emphasis on innovation in every sphere,
technology and reducing costs on providing better value to the customers
by adopting a superior technology
Different departments work as highly All departments of a business operate in an
separate watertight compartments integrated manner, the sole purpose being
generation of consumer satisfaction
Selling views customers as the last link in After sales services are part of marketing
business activities
22. ELEMENTARY STUDY OF SALES ORGANIZATIONS
The sales organization represents the selling unit in the legal sense.
Sales organizations are structural entities, which execute a
combined sales plan and are designed to carry out mutually agreed
business goals with clear structures, roles and responsibilities for
each person, group, and department
A typical sales organization consists of a structural framework
specifying the formal authority and responsibility of various
employees working in the organization.
A sales organization defines the duties, roles, rights, and
responsibilities of sales people engaged in selling activities meant
for the effective executions of the sales functions.
23. PURPOSES OF SALES ORGANIZATION:
To permit the development of specialists
To assure that all necessary activities are performed
To achieve coordination or balance
To define authority
To economize on execution time
24. SETTING UP A SALES ORGANIZATION:
Defining Objectives
Determination of Activities and their Volume of Performance
Grouping activities into positions
Assignment of Personnel to positions
Provisions
25. THE SYSTEM VIEW OF AN ORGANIZATION: (DIMENSIONS OS
SUCCESSFUL SALES ORGANIZATION)
Company Results:
Salespeople:
Activities:
Sales Effectiveness
Drivers:
Customer Results:
26. STRUCTURAL CHANGES IN SALES
ORGANIZATION
From Top Down Command and To Horizontal and customer-driven
control-driven
Information Processing Knowledge creation
Compartmentalized Knowledge Shared Knowledge
Functions Retail power Core process team has the power
Functions own skills Core competencies supply skills
Dominant function leads Leader represents team
Narrow result focus (sub- Broad process focus
optimization) (optimization)
Rewards are within chimneys Rewards are based on the overall
(functions) performance of the organization
Slow/bureaucratic Quick/empowered
27. FUNDAMENTALS OF ORGANIZATIONAL
PRINCIPLES
Fundamental of Organizational Principles
1. Span of Control 1. The number of people directly reporting to the sales
manager
2. Unity of Command 2. Each person should report to one boss only
3. Hierarchy of Authority 3. A clear and unbroken chain of command should link
every person
4. Stability and Continuity 4. Jobs should not be assigned without due regard for the
talents and preferences of current employees
5. Coordination and Integration 5. The job of sales people should be integrated with
customer needs, and coordinated with the jobs of other
employees and departments in the organization
1. Homogeneity 6. Formal authority and responsibility must be co-
terminus and co-equal
2. Objectivity 7. Each division and sub division of the organization
should be the expression of a definite purpose and be
in harmony with the objective of the organization
3. Specialization 8. The work of every individual in the organization
should be confined as far as possible to the
performance of a single leading function
28. TYPES OF SALES ORGANIZATIONS
Line Organization
Horizontal Organization
Vertical Organization
Organizational Design by territory (geographical)
Organizational Design by management functions
Organizational Design by Product
Organizational Design by Customer
Combined organizational structure
29. LINE ORGANIZATION:
• Vertical Organization:
PRESIDENT/OWNER
VICE PRESIDENT SALES
FIVE SLES PEOPLE
• Horizontal Organization:
PRESIDENT/ VICE
FIVE
PRESIDENT
OWNER SALESPOEPLE
SALES
37. QUALITIES AND RESPONSIBILITIES OF
SALES MANAGER
Salesperson’s Views Sales Manager’s Views
Quick thinking Positive and sincere attitude
Qualities Of Foresight Patience
A Successful
Hardworking Diligence
Salesperson
Determination Good presentation skills
Responsibility Foresight
Qualities Of Patience Patience
A Successful
Firmness Strong sense of responsibility
Sale
Manager Good Ability to forecast and handle
communication challenges
skills
38. FUNCTIONS OF SALES MANAGER
Salesperson’s Views Sales Manager’s Views
Prospect new Prospect new customers
customers
Make sales presentations
Make sales
Functions Of A presentations Close sales
Salesperson Collect payment
Close sales
Collect payment Collecting information
Motivating salespeople
Product updating lines
Negotiating prices with suppliers
Coordination Making product orders
Functions Of A
Successful Sale Recruitment Making sure salespeople adhere to company policies and rules
Manager Training Handling customer feedback
Sales Forecasting sales figures
Setting sales target
Working with other departments
Sourcing for new products
39. SALES MANAGER RESPONSIBILITIES
Sales Resource Management:
Sales Training to Subordinates:
Managing Sales Executives:
Preparing Sales Policies and
Marketing Strategies:
Handling Important Sales Deals:
Team Management:
40. 10 ATTRIBUTES OF A GREAT SALES
MANAGER:
1) Passion.
2) Integrity
3) Positive attitude
4) Coaching.
5) Leadership
6) Loyalty
7) Availability
8) Motivation
9) Continuous learning
10) Listening and communication
41. 14 THINGS SALES PEOPLE SHOULD
NEVER STOP DOING
Prospect
Ask awesome questions
Improve your skill
Deliver great presentations
Listen more than you talk
Adapt your approach
Establish clear call objectives
Set high goals
Create plans (yearly, quarterly, monthly and weekly)
Be persistent
Study your products
Forge relationships
Network
Show respect