Basics of sales management

1. SALES AND
DISTRIBUTION
MANAGEMENT
Swarit Yadav

2. PGDM (IIM Raipur)
Bakhresa FMCG (South Africa)
Relationship Manager (HDFC Bank)
MD- Shyam Hospital
Faculty(MBA)- GLA University, Mathura
Swarit Yadav

3. Sales budget
 Sales volume budget
 Selling expense budget
 The administrative budget

4. Purpose of sales budget
 Planning
 Coordination
 Control

5. Methods used for allocating
money
 Percentage of sales method
 The executive judgement
 Objective and task method

6. The sales budget process
 Review the situation
 Communication for preparing the budget
 Preparation of subordinate budgets
 Approval of the sales budget

7. Sales territory
 Defining a sales territory
 Reasons and benefit for setting sales
territories
 Increased market or consumer coverage
 Reduced selling expenses
 Better sales force performance evaluation
 Improved customer relationship
 Increased salespeople’s effectiveness
 Improves coordination
 Benefitting salespeople and company
 Reasons for not setting up sales territories

8. Procedure of designing the sales
territory
 Select a control unit
 States
 Metropolitan clusters
 Cities/town/districts
 Find location and sales potential of customers
 Determine basic territories
 Build-up method(Discussion at last slide)
 Breakdown method(Discussion at last slide)

9. Procedure of designing the sales
territory
 Assign salespeople to territories
 Relative ability of sales people
 Salesperson’s effectiveness in a territory

10. Procedure of designing the sales
territory
 Manage territorial
coverage
 Planning of efficient
routes for salespeople
 Procedure for setting
up a routing plan
 Application and
importance of routing
 Scheduling the
salesperson’s time
 Allocation of time
 Customer calls
 Time management
tools for salespeople
 High-tech equipment
 Inside salespeople
 Time management
tools for sales
managers
 Evaluate and revise
sales territories
 Revising sales
territories
 Use of IT for
designing sales
territories

11. Sales Quotas
 Sales quotas
 Importance/purpose
of sales quotas
 Providing
performance
standards
 Controlling
performance
 Motivating people
 Identifying strengths
and weaknesses
 Types of sales quotas
 Sales volume quotas
 Rupees/dollars sales
volume quotas
 Unit sales volume
quotas
 Point sales volume
quotas
 Gross margin or profit
contribution quotas
 Expenses quotas
 Activity quotas
 Combination quotas

12. Combination quotas

13.  Method for setting sales volume quotas
 Territorial sales potential
 Past sales experience
 Total market estimates
 Executive judgment
 Salespeople’s estimates
 Compensation plan

14.  Administration sales quotas
 Set realistic quotas
 Understand problems in setting quotas
 Ensure salespeople understand quotas
 Participation in quota-setting
 Continuous feedback
 Know relationship between quota selection and
marketing environment
 Make sure flexibility in administering quotas
 Companies not using quotas