Module 1 Overview• Meaning, Evolution, Importance, Per sonal selling• Emerging trends in Sales Management• Elementary study of sales organizations• Qualities & responsibilities of sales manager• Types of Sales Organizations
Meaning of sales Management• According to the American Marketing Association, Sales management is“The planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal sales force”.
Evolution of Sales ManagementPheriwallas - the first sales peoplePack Peddlers – the shrewd, unprincipled trickstersGreeters and Drummers – intermediary to buyerModern sales management
Importance of Sales Management• Sales force is the primary contact point• In most industrial markets, personal selling comprises the majority of promotional budget.• Customer considers salesperson as the company selling the product.• Internet and web based platforms for interaction with customers
Personal Selling Prospecting, Formulating prospect definition Searching out potential customers Qualifying and determining requirement Relating and converting them.Importance of Personal selling It enhances customer’s confidence in the seller. It promotes long-term business relations through personal intimacy. It provides a human touch to business organisation. It helps facilitate the seller to understand each customer’s needs and preferences more clearly.
Importance (Contd.) It helps satisfy a customer by modifying the product as per the customer’s choice and preference. Personal selling followed by personal service helps to build long term relationship with the customer. It is a powerful tool of convincing customer about the product. Through personal selling the time lag between introducing a product through the media and actually selling it is reduced. It provides prospective customer with a better understanding of the product and an interactive opportunity to liaise with the sales personnel
Types of Personal Selling Personal Selling selling with unusual Service selling Developmental selling creativity Salesperson of tangible Inside order taker product Back- door salesperson Salesperson of intangible Salesperson engaged inDelivery salesperson product multiple salesMerchandising salesperson MissionaryTechnical salesperson
Types of Selling• Industrial Selling• Selling to business Users• Institutional selling• Retail Selling• Selling to government• Service Selling
Emerging trends in Sales Management• Relationship selling• Global and ethical issues• New selling methods• Global perspective• Revolution in technology• Customer relationship management (CRM)• Sales force diversity• Team selling approach• Managing multi-channels• Ethical and social issues• Sales professionalism
Sales Organization• A sales organization is an organization of individuals either working together for the marketing of products and services manufactured by an enterprise or for products that are procured by the firm for the purpose of reselling.
Purpose of Sales Organization To permit the development of specialists To assure that all necessary activities are performed To increase co-ordination and balance To define authority To economize on executive time
Factors affecting Sales Organization• Product and Service Related Factors• Organization – related Factors• Marketing Mix-related Factors• External Factors
Organizational Principles• Span of Control• Centralization and Decentralization• Integration and Coordination
Types of Sales Organizational Structures Line Organisation Line and Staff Organization Functional Sales Organization Horizontal Organization
Alternate Sales Org. For Major Customers• Creating a major account management team• Using existing sales managers• Creating a separate division or sales force
Emerging Organizational DesignAgency and Distribution SellingShared Sales ForceTelemarketingTeam- based selling
Size of Sales ForceAffordability MethodWorkload MethodBreakdown Method
Qualities of a Sales Manager Good communicator, catalyst and planner. Skillful manipulator. Amalgamator, a consolidator, and orchestrator Successful mentor Innovator and creator of new ideas and promotion. Over achiever rising to the challenge of new forecast each year. Able to handle unanticipated difficulties and events. Opportunist and advisor. Team mate, umpire and referee
Responsibilities Sales planning and budgeting Estimating demand and forecasting of sales Determination of size and structure of sales organisation. Recruiting , selecting and training of sales force. Setting sales quota. Compensating, motivating and leading sales force. Analysing sales volume , cost and profit. Measuring and evaluating sales force performance. Monitoring marketing environment
Methods of Sales Forecasting Jury of Executive opinion The Delphi Technique Survey of Customer buying plans Poll of Sales Force Opinion Projection of Past sales (i) Time Series Analysis – Trend Projections (ii) Naïve Method(iii) Graphic Method(iv) Method of semi-averages (v) Method of moving averages(vi) Regression analysis