The document discusses the evolution and importance of sales management within organizations, highlighting the role of sales executives in planning, directing, and controlling personal selling activities. It emphasizes the responsibilities of sales managers in achieving sales volume, profit contributions, and business growth while coordinating efforts within the company and with external partners. Additionally, it outlines how effective sales management contributes to organizational success by optimizing product offerings, pricing, and distribution strategies.

1. INTRODUCTION
TO
SALES MANAGEMENT

2. • Sales executives are seen as professionals in organizations today. They plan, build,
and maintain effective organizations and design and utilize efficient control
procedures.
• The professional approach requires thorough analysis, market-efficient qualitative
and quantitative personal-selling objectives, appropriate sales policies, and
personal-selling strategy.
• Sales executives have responsibilities to their organizations, the customers, and
society.
• Top management holds them responsible for
1) obtaining sales volume,
2) providing profit contributions, and
3) continuing business growth.
INTRODUCTION

3. • The customers expect them to supply easily resalable products and services, backed
up by supporting activities and assurance that the products and services are wise
investments in the competitive marketplace.
• Society looks to them to assure the delivery of goods and services that final buyers
want at prices that buyers are willing to pay. If the goods and services made and
sold are needed and accepted by the buying public, then it is likely that
management's objectives will have been achieved.
• When the interests of the firm, the consumer, and society are achieved the firm
experiences sales volume, net profits, and business growth.
INTRODUCTION

4. • Prior to the Industrial Revolution, small-scale enterprises dominated the
economic scene, and selling was no problem.
• Concern was to produce more.
• Easy orders.
• Major problems associated with manufacturing.
• Selling and other marketing activities were handled on part time basis.
• With industrial revolution, large scale production started which actually
exceeded the current demand.
• This makes companies to look into new markets for selling.
• Other business problems were still important than selling such as hiring of
workers, land acquisition for building, machinery.
• For these activities, large amount of capital had to be raised.
• This resulting corporate form of business with separate functional
department.
EVOLUTION OF SALES DEPARTMENT

5. • Sales departments were set up only after the activation of manufacturing
and financial departments.
• New departments are being created for the performance of specialized
marketing tasks.
• Marketing activities today are carried on not only by the sales department,
but by such departments as advertising, marketing research, export, sales
promotion, merchandising, shipping, credits and collections.
• In spite of this growing' fragmentation of Marketing operations, the sales
department still occupies a strategically important position.
• Businesses rely upon their sales departments for the inward flow of income.
• It has been said that the sales department is the income-producing division
of business.
EVOLUTION OF SALES DEPARTMENT

6. “Sales management" originally referred exclusively to the direction of sales
force personnel.
The American Marketing Association has now defined sales management
as “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
salesforce."
The American Marketing Association's definition made sales management
equal to management of the sales force, bur modem sales managers have
considerably broader responsibilities.
DEFINITION

7. Objectives of sales are made on the basis of position of organization in the
market, and the goals of management. It is a joint effort of top
management, sales managers and marketing managers.
• Achieving Sales volume
• Contribution for earning profit
• Rapid growth of Organization
• Financial Results
OBJECTIVES OF SALES MANAGEMENT

8. Sales management helps in developing right product, setting up the best
optimum price and right distribution which includes all the methods of
promotion mix and providing services to the consumers and managing
efforts of selling.
• Setting of goals
• Monitoring Performance of Sales
• Improving Development of Product
• Optimizing Distribution
• Decisions regarding Finance
• Improving quality of sales personnel
IMPORTANCE OF SALES MANAGEMENT

9. • Sales managers are in charge of personal-selling activity, and their main job is management of
the personal sales force.
• Sales managers are now also responsible for organizing the sales effort, both within and
outside their companies.
• Within the company, the sales manager builds formal and informal organizational structures
that ensures effective communication not only inside the sales department but in its
relations with other departments.
• Outside the company, the sales manager serves as a key contact with customers and is
responsible for building and maintaining an effective distribution network.
• They are responsible for participating in the preparation of information critical to the making
of key marketing decisions, such as those on budgeting, quotas, and territories.
• They participate in decisions on products, marketing channels and distribution policies,
advertising and other promotion, and pricing.
• Thus, the sales manager is both an administrator in charge of personal selling activity and
a member of the executive group that makes, marketing decisions of all types.
ROLE OF SALES MANAGER

10. From the company viewpoint, there are three general objectives of sales
manager:
1) sales volume,
2) contribution to profits, and
3) continuing growth.
• Sales executives do not have the total responsibility to reach these objectives,
but they make major contributions.
• Top management has the final responsibility, because they were accountable
for the success or failure of the entire enterprise.
• Top management delegates to marketing management, which then delegates
to sales management, sufficient authority to achieve the three general
objectives.
OBJECTIVES OF SALES MANAGER

11. • In the process, objectives are translated into more specific goals.
• For goal setting, sales executives provide estimates on market and sales potentials, the
capabilities of the sales force and the middlemen.
• Once these goals are finalized, sales executives guide and lead the sales personnel and
middlemen who play critical roles in achieving the selling plans.
• Sales management is also involved in planning the course of future operations. It
provides higher management with information, for making marketing decisions and
for setting sales and profit goals.
• Based on sales management's estimate of market opportunities, targets are set
for sales, volume, gross margin, and net profit in units of produce and in rupee
value, with benchmarks of growth projected for sales and profits at specific future
dates.
• Whether or not these targets are reached depends upon the performance of sales and
other marketing personnel.
OBJECTIVES OF SALES MANAGER

12. SALES MANAGEMENT AND
FINANCIAL RESULTS
Sales management and financial results are closely related. Financial results are stated in terms from two
basic accounting formulas:
Sales - cost of sales = Gross margin
Gross margin - expenses = Net profit
• Sales, gross margin, and expenses are affected by the caliber and performance of sales management, and
these are the major determinants of net profit.
• The cost-of-sales factor cannot be affected directly by sales management, but it can be affected indirectly
since sales volume must be large enough to permit maintenance of targeted unit costs of production and
distribution.
• The company maximizes its net profits if it obtains an optimum relationship among the four factors.
Sales management, both in its planning and operating roles, aims for an optimum relationship among the
three factors it can directly affect: sales, gross margin, and expenses.
• Sales management works with others (such as those in charge of production and advertising) to assure
that sales volume is sufficient to attain targeted cost of sales, the fourth factor.

13. Optimum marketing performance in terms of sales volume, net profits, and
long-term growth requires coordination, and sales management has to play a
significant role in coordinating.
Sales executives have responsibilities for coordination involving
(1) the organization,
(2) the planning, and
(3) other elements in the marketing strategy.
SALES MANAGEMENT AND
ORGANIZATIONAL COORDINATION

14. Sales Management has to coordinate personal selling efforts with the
marketing efforts of the middlemen. Among the most important aspects
are:-
• Gaining Product Distribution
• Obtaining Dealer Identification
• Reconciling Business Goals, and
• Sharing Promotional Risks
COORDINATION WITH DISTRIBUTIVE
NETWORK

15. Sales Management Controls the personal-selling effort of the organization. The purpose
is to sure that sales department objectives are reached.
 Sizing up the situation - Reviewing the personal-selling objectives of the firm by
answering
(1) Where are we now?
(2) How did we get here?
(3) Where are we going?
(4) How do we get there?
 Setting quantitative performance standards
 Gathering and processing data on actual performance
 Evaluating performance
 Action to correct controllable variation.
 Adjusting for uncontrollable variation
SALES MANAGEMENT AND CONTROL

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