introduction to sales management

1. Introduction to Sales
Management

2. Evaluation of Sales
Management
A. The beginning era identified as Simple
Trade Era, lasted from the beginning of the
marketing concept to the mid 19th
century. In this period whatever products
available were harvested with limited
offerings. Exploration and trade in resources
was the focus of the economic activity with
products as center of attraction.

3. Evaluation of Sales
Management
B. In the next stage the simple trade era was
replaced by the production era, continued
until the great depression. In this era
importance was given on engineering
and production. The primary objective was
to only produce product and sell it to the
market in assumption that customers have
to accept it as alternatives were not
available.

4. Evaluation of Sales
Management
C. The sales era lasted between 1920’s and
1940’s, emphasized on different
marketing related aspects rather than
product only. As consumer markets were
saturated and competitions were increasing
day by day so it was not easy to sell product
without providing adequate information
about the brand. Here price became one of
the most important features to organizations
to get an edge over their rivals.

5. Evaluation of Sales Management
D. During the post Second World War phase, World
featured economic boom resulted a urgent need of a separate
department for marketing called as Marketing Department
Era. Here organizations
experienced that past sales orientation concept were not
sufficient to motivate consumers as they have more
bargaining power in market place. Business consolidated
market related activities like advertisement, sales promotion,
public relation etc into a consolidated department and
concentrating on brand positioning.

6. Evaluation of Sales
Management
E. As the premise of the marketing concept became
widely accepted so the era of marketing
organization emerged to take care of customers’
need. Now customers are the focal point and all
employees became part of the marketing effort. In
the classical theory of marketing evolution this is
the last stage followed by two modified version of
sub-stages.

7. Evaluation of Sales Management
i) This sub-stage within marketing concept identified as the
relationship marketing concept. The goal of the
organization is to build-up a long-term relationship with
customers. The general focus has changed to lifetime
customer value and customer loyalty. Customer
relationship management and data-mining become the
buzzwords in recent marketing scenario.
ii) The second sub-stage within the marketing concept is
identified as social/mobile marketing concept. It
summed-up the knowledge and theories of its predecessor
era but focuses on real-time connections and social
exchanges based on build-up relationship driven by the
consumers. In this concept businesses are connected 24/7
to current, future and potential consumers in real time.

8. Evaluation of Sales
Management

9. Concept & Definition of
Sales
Management
Sales management originally referred exclusively to
the direction of sales force personnel and lately the
term transformed into broader aspect in addition to the
management of personnel selling. In general view
Sales Management refers the management of
overall marketing activities such as advertising,
sales promotion, marketing research, physical
distribution, pricing and product merchandising.

10. Concept & Definition of
Sales Management
According to American Marketing
Association sales management refers “the
planning, direction and control of personnel
equipping, assigning,
selling, including recruiting,
routing,
selecting,
supervising,
paying and motivating as these tasks apply to
the personal sales force”.

11. Concept & Definition of Sales Management
Efforts put forth to attain a company’s sales objectives
through sales management’s involvement with following
activities:
(1)Formulation of sales strategy through development of
account management policies, sales force compensation
policies, sales revenue forecasts, and sales plan,
(2) Implementation of sales strategy through selecting
,training, motivating, and supporting the sales force, setting
sales revenue targets, and
(3)Sales force management through development and
implementation of sales performance, monitoring, and
evaluation methods, and analysis of associated behavioral
patterns and costs.

12. THE NATURE AND IMPORTANCE OF SALES
MANAGEMENT
According to Robert N. McMurry in his famous article ‘The
Mystique of Super Salesmanship’ (Harvard Business Review,
March-April 1961, p.114) classified a salesperson’s position
in the organization on following ways:-
•Position where a Salesperson’s job is predominantly to
deliver a product;
•Positions where a salespersons is predominantly an internal
order taker;
•Positions where a salesperson is also predominantly an
order taker but works in the field;

13. THE NATURE AND IMPORTANCE OF SALES
MANAGEMENT
•Positions where a salesperson is not expected or
permitted to take an order but is called only to build
goodwill or to educate an actual or potential user;
•Positions where the emphasis is placed on technical
knowledge;
•Positions which demand the creative sales of tangible
products;
•Positions requiring the creative sale of intangible
products;

14. THE NATURE AND IMPORTANCE OF
SALES MANAGEMENT
While the role of sales management professionals is
multidisciplinary, their primary responsibilities are:-
(a) Setting goals and standards for a sales-force;
(b) Planning, budgeting, and organizing sales program
to achieve pre-defined goals;
(c) Implementing the program with proper segmentation
and
(d) Controlling the overall program and evaluating the
results.

15. Objectives of Sales Management
Sales management necessitates several objectives which are
executed by sales managers. There are three such main
objectives exist in the operational part of the organization:-
1.Sales Volume
2.Contribution to profits
3.Continuous Growth

16. Objectives of Sales Management
• The sales executives in this case are the ones who help implement
these objectives.
• However it is the top management who are responsible to make
skeleton of the organizational operation and has guided the lower
management with full proof strategy to achieve these objectives of
sales management.
•The top management should come out with the idea of new products
which are socially responsible and are marketed in a manner which
meets customer’s needs and expectations.
• Thus sales management involves a strong interaction between Sales,
marketing and top management and worked as an integrated unit
under the organization as a whole.

17. Emerging trends in Sales Management
•Global Presence- Being a global, it is very necessary to face stiff challenges
from global companies. Due to differences in culture, language and taste and
preferences of customers it is not easy to adopt global condition. So sales force should
have well equipped with improved technology, strategy and operational to upgrade
themselves for international level.
•Innovative technology- Revolution in technology helped companies to
communicate with world-wide customers in ease way. To promote products sales
management on behalf of organization should adopt new innovative technology. So it is
important for sales manager to aware off recent technologies using to get edge in
competitions.
•Better Customer Relationship Management (CRM) - Being a successful
organization in today’s competitive world it is necessary to build long-term relationship
with customers. It is less costly to retain an old customer rather than acquiring a new
one. So building up long term relationship will help the organization to know better
about needs and wants of the customers as referral process is very important for the
organization. It is not only building the brand image but also provide favorable
condition to operate.

18. Emerging trends in Sales Management
•Diversity among Sales-force- There is always exist diversity
between sales-force of an organization. Sales manager has to
accommodate himself with people of different background within his
sales-force.
•Team Based Selling Approach- In recent years it is common
approach for the organization to sell the product as a team to build long-
term relationship with potential customers. It is also very useful when
technically complex products are in the process to sell. Generally sales
team consists of top management, inbound and outbound salespersons,
technical specialists etc.
•Multi-channel Operations- in today’s competitive world, multi-
channel operation system is very useful to reach out for potential
customers in different ways. It is very handy for i) lowering channel cost,
ii) customized selling techniques with broad coverage.

19. Emerging trends in Sales Management
•Ethical and Social Issues- In recent years it is necessary to abide
social and ethical issues such as legal constraints, provide social values
to customers’ expectations and taking part in events related to corporate
social responsibilities. Sales manager has to understand the complex
nature of the society and take necessary steps to deal impartially with
various social groups.
•Professionalism within Sales-force- Sales manager should have
professional attitude to process sales operation. As customers are well
informed and aware about the market condition thoroughly so it is
necessary to gather knowledge, skills and right attitude to motivate them.
Reliability, professionalism, integrity and thorough market knowledge is
very necessary for today’s competitive world.

20. Emerging Trends in Sales Management
Emerging
Trends in Sales
Management
Customer
&
Orientation
Profile
Global &
Ethical Issues
Build
Relationship &
Customer
Orientation
Identify
Opportunity
Diversity
Situation
Analysis
Creating
Solution through
technological
innovation
Win
Opportunity
through new
selling methods

21. Functions of Sales
Management
Sales Planning,
Recruitment & Selection,
Training,
Motivation & Remuneration,
Equipping,
Relationship Building,
Attainment of Sales Target,
Delegation,
Supervising,
Allotment of Sales Territories,
Allocation of Sales Quotas,
Sales Budget Preparation,
Communication,
Sales Controlling.

22. Sales Planning-
Sales Planning is the first functions of sales management and it means that the role
of a sales manager is to facilitate planning. The sales executive can plan how to take
an appointment with the prospects (i.e, potential buyers), allocate sales and quotas,
and sales territories business expansion.
This point is also helps to identify the target market of a sales individual.
Recruitment and Selection-
Recruitment is the second functions of sales organisation/ management and it
means that the sales manager recruit the right person or individual with appropriate
selling skills and select him for a sales job. This function is very essential for the
sales department because it helps to choose the effective manager or employee for
the organization.
The recruitment can be classified into two categories such as an internal source of
recruitment and external source of recruitment.
Training-
Training is the third functions of sales management and it means, it is a very
important function of sales manager. Since it enhances the skills, potential,
knowledge, and ability of a salesperson to take challenging jobs and perform
effectively.
If an organization wants to increase the sales potential of sales executives then it will
have to provide proper training facilities and development programs also.

23. Motivation & Remuneration-
Motivation is the fourth functions of sales management and it is very necessary to attain the sales
target. It helps in understanding the means, emotions, sentiments, and expressions of a particular sales
executive. While remuneration will help in the compensation structure of a salesperson.
Equipping-
Equipping is the fifth functions of sales organisation/management and it means that the sales
manager equipped the sales team so that the team is ready with templates, brochures, price list, yellow
papers, hoardings which can facilitate or increase the volume of sales.
Relationship Building-
The relationship is the sixth functions of sales management and it means that the critical task of a sales
manager is to acquire the prospects, grow the customers, build the customers, manage the customers
and retain them through relationship marketing.
Attainment of Sales Target-
Attainment factor is the seventh functions of sales organisation/management and it means that the
ultimate objective of a sales manager is to maximize the sales revenue. He will be responsible for the
attainment of sales target by himself and also by the team.
Thus, the achievement of a sales target helps to grow the business or an organization in an effective or
efficient manner.
Delegation-
Delegation is the eighth functions of sales department/management and it means that the degree of
control and accountability is possible through delegation. There will be a grouping of jobs along with the
concerned authority so that work is completed within a stipulated period of time.
However, delegation is also known as the transfer of something (it can be work, power, etc).
Supervising-
Supervising is the ninth functions of sales management/representative and it means that the task of
the sales manager is to supervise the actions of sales executives so that he can rectify any deviations if
possible.

24. Allotment of Sales Territories-
Allotment strategy is the tenth functions of sales manager and it means that the sales territories
refer to the grouping of customers over a particular area. Companies allot sales territories to sales
representatives so that there is complete the coverage of the market.
Allocation of Sales Quotas-
Allocation strategy is the eleventh function of sales management and it means that the sales
quota refers to the quantitative targets assigned to individuals salesperson. These are responsible
for planning, controlling, and evaluation of personal selling activities.
Sales Budget Preparation-
The sales budget is the twelfth functions of a sales manager and it means that they comprise of
personal selling function expenses, expenses involved in transportation, promotional expenses,
tele-calling expenses and so on.
. Communication-
Communication is the thirteenth function of sales management and it means that the sales
manager maintains proper communication between various sales executives and inform the top
level of management about the sales targets or revenue attained.
Personal selling involves effective communication.
Sales Controlling-
The sales controlling is the fourteenth functions of sales management and it means if there is the
deviation in actual sales then the salesperson makes corrections sales targets attained so that
mismatch between actual sales and desired sales could be minimized.

30. objectives of sales
management
1. Revenue Generation – One of the main objectives of sales management is to
generate revenue for the organization. The sales department is solely responsible to
bring in the money.
2. Increase Sales Volume – Through efficient sales management, the organization
wishes to increase the number of units sold. This will ensure that the production
facilities do not remain idle and are utilized to the fullest.
3. Sustained Profits – Sales management has an objective of improving the profits
of the organization through effective planning, coordination and control. Sales
management strives to increase sales and reducing costs, this ensures good profits for
the organization.
4. Organization Growth – With the sustained and continuous sales management
techniques, the organization tends to gain market share and results in growth of the
organization.
5. Market Leadership – With increased sales volumes and profits, ‘sales
management’ enables an organization to become the market leader.

31. 6. Converting Prospects to Customers – Getting prospects to become customers is
an art and a science, it requires good planning and sustained efforts. This is
accomplished through sales management.
7. Motivate the Sales Force – One of the core objectives of sales management is to
motivate the sales force. Selling is a very stressful task, achieving sales targets can
become very challenging. Therefore, the sales management task is to ensure that the
sales force is continuously motivated through proper incentives and reward systems.
8. Compliment Marketing Activities – Sales management’s task is to support the
marketing functions of the organization. Marketing and sales need to go hand in hand
to achieve the desired results.