Introduction to sales management


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Introduction to sales management

  1. 1. Introduction to Sales Management Dr. Debasis Ray
  2. 2. Evaluation of Sales ManagementA. 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. 3. Evaluation of Sales ManagementB. 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. 4. Evaluation of Sales ManagementC. 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. 5. Evaluation of Sales ManagementD. 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. 6. Evaluation of Sales ManagementE. 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. 7. Evaluation of Sales Managementi) 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. 8. Evaluation of Sales Management
  9. 9. Concept & Definition of Sales ManagementSales management originally referred exclusively tothe direction of sales force personnel and lately theterm transformed into broader aspect in addition to themanagement of personnel selling. In general viewSales Management refers the management ofoverall marketing activities such as advertising,sales promotion, marketing research, physicaldistribution, pricing and product merchandising.
  10. 10. Concept & Definition of Sales ManagementAccording to American MarketingAssociation sales management refers “theplanning, direction and control of personnelselling, including recruiting, selecting,equipping, assigning, routing, supervising,paying and motivating as these tasks apply tothe personal sales force”.
  11. 11. Concept & Definition of Sales ManagementEfforts put forth to attain a company’s sales objectivesthrough sales management’s involvement with followingactivities:(1) Formulation of sales strategy through development ofaccount management policies, sales force compensationpolicies, sales revenue forecasts, and sales plan,(2) Implementation of sales strategy through selecting,training, motivating, and supporting the sales force, settingsales revenue targets, and(3) Sales force management through development andimplementation of sales performance, monitoring, andevaluation methods, and analysis of associated behavioralpatterns and costs.
  12. 12. THE NATURE AND IMPORTANCE OF SALES MANAGEMENTAccording to Robert N. McMurry in his famous article ‘TheMystique of Super Salesmanship’ (Harvard Business Review,March-April 1961, p.114) classified a salesperson’s positionin the organization on following ways:-•Position where a Salesperson’s job is predominantly todeliver a product;•Positions where a salespersons is predominantly an internalorder taker;•Positions where a salesperson is also predominantly anorder taker but works in the field;
  13. 13. THE NATURE AND IMPORTANCE OF SALES MANAGEMENT•Positions where a salesperson is not expected orpermitted to take an order but is called only to buildgoodwill or to educate an actual or potential user;•Positions where the emphasis is placed on technicalknowledge;•Positions which demand the creative sales of tangibleproducts;•Positions requiring the creative sale of intangibleproducts;
  14. 14. THE NATURE AND IMPORTANCE OF SALES MANAGEMENTWhile the role of sales management professionals ismultidisciplinary, 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. 15. Objectives of Sales ManagementSales management necessitates several objectives which areexecuted by sales managers. There are three such mainobjectives exist in the operational part of the organization:-1.Sales Volume2.Contribution to profits3.Continuous Growth
  16. 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. 17. Emerging trends in Sales Management•Global Presence- Being a global, it is very necessary to face stiff challengesfrom global companies. Due to differences in culture, language and taste andpreferences of customers it is not easy to adopt global condition. So sales force shouldhave well equipped with improved technology, strategy and operational to upgradethemselves for international level.•Innovative technology- Revolution in technology helped companies tocommunicate with world-wide customers in ease way. To promote products salesmanagement on behalf of organization should adopt new innovative technology. So it isimportant for sales manager to aware off recent technologies using to get edge incompetitions.•Better Customer Relationship Management (CRM) - Being a successfulorganization in today’s competitive world it is necessary to build long-term relationshipwith customers. It is less costly to retain an old customer rather than acquiring a newone. So building up long term relationship will help the organization to know betterabout needs and wants of the customers as referral process is very important for theorganization. It is not only building the brand image but also provide favorablecondition to operate.
  18. 18. Emerging trends in Sales Management•Diversity among Sales-force- There is always exist diversitybetween sales-force of an organization. Sales manager has toaccommodate himself with people of different background within hissales-force.•Team Based Selling Approach- In recent years it is commonapproach for the organization to sell the product as a team to build long-term relationship with potential customers. It is also very useful whentechnically complex products are in the process to sell. Generally salesteam 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 potentialcustomers in different ways. It is very handy for i) lowering channel cost,ii) customized selling techniques with broad coverage.
  19. 19. Emerging trends in Sales Management•Ethical and Social Issues- In recent years it is necessary to abidesocial and ethical issues such as legal constraints, provide social valuesto customers’ expectations and taking part in events related to corporatesocial responsibilities. Sales manager has to understand the complexnature of the society and take necessary steps to deal impartially withvarious social groups.•Professionalism within Sales-force- Sales manager should haveprofessional attitude to process sales operation. As customers are wellinformed and aware about the market condition thoroughly so it isnecessary to gather knowledge, skills and right attitude to motivate them.Reliability, professionalism, integrity and thorough market knowledge isvery necessary for today’s competitive world.
  20. 20. Emerging Trends in Sales Management Customer & Orientation Win Profile Opportunity Global & through new Ethical Issues selling methods Creating Build Emerging Solution through Relationship & technological Trends in Sales Customer innovation Management Orientation Situation Identify Analysis Opportunity Diversity