Sales management means 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
In above definition there is a confusion b.w sales management and management of sales force
According to this theory, during the successful selling interview the prospect’s mind passes through five successive mental states:
Attention, Interest, Desire, Action, and Satisfaction
Implicit in this theory is the notion that the prospect goes through these five stages consciously, so the sales presentation must lead the prospect through them in the right sequence if a sale is to result
“ A Market Potential is an estimate of the maximum possible Sales Opportunities present in a particular market Segment and open to all seller of a good or service during a stated future period ” .
“ A Sales potential is an estimate of the maximum possible Sales opportunities present in a particular market segment open to a specified Company selling a goods or services during a stated future period ” .
V. The number of sakes person are needed is determined by dividing the total annual calls required by the average annual calls made by a sales representative .
Suppose the company estimate that there are 1,000 A accounts & 2,000 B accounts in any particular territories. A accounts required 36 Call in a year & b accounts require 12 calls a year. The Company need a Sales Force that can make 60,000 Sales call in a year. Suppose the average Rep. Can make 1,000 calls in a year. The company would need 60 full time sales Representative.
In this step, the company should group adjoining control units (which share their borders) until yearly number of calls needed in those control units equals the total number of calls a salesperson can make.
The sales manager makes tentative territories by combining adjoining control units until the sales potential of each territory is equal to or greater than the expected sales volume from each salesperson
Once the sales territories are designed, the sales manager is ready to assign or allocate individual salespeople to each territory.
In any given sales force, salesperson differ in selling abilities and effectiveness. A sales person may succeed in one territory and fail in another territory, even though sales potential and workload are the same in the two territories