The document discusses sales management through a narrative of Sarah, a boutique owner, and Maya, her new sales associate, emphasizing the importance of empowering sales talent to enhance business success. It outlines key elements of sales management, such as setting targets, training, motivating sales teams, and optimizing sales processes to achieve revenue growth and customer loyalty. The document also details the seven-step sales process and effective management practices to oversee sales force activities and foster team collaboration.

1. Sales & Distribution
Management
Asst. Prof. Manoj Kumar Behera
ASTHA School of Management, Bhubaneswar

2. A small story related to sales management
• In a bustling city, there was a small boutique owned by Sarah, who
prided herself on hand-selecting unique jewelry pieces for her
customers. Despite her passion, sales had been stagnant for months.
• One day, Sarah hired a young sales associate named Maya. Maya was
energetic and had a natural skill for engaging customers. Sarah noticed
Maya's talent and decided to empower her by giving her more autonomy
in arranging displays and suggesting new pieces to customers.

3. • With Sarah's guidance and Maya's fresh ideas, the boutique began to attract
more foot traffic. Maya's personalized approach and genuine enthusiasm for
the jewelry helped build a loyal customer base. Sales steadily increased, and
Sarah's boutique soon became known as a hidden gem in the city.
• Sarah realized that by trusting Maya and fostering her creativity, she not only
revitalized her business but also found a dedicated partner in achieving their
shared success.

4. Selling Means
• Selling in marketing refers to the strategic process of
persuading potential customers to purchase a product or
service by effectively communicating its value proposition and
meeting their needs.
• It involves various techniques and tactics aimed at influencing
buying decisions, closing sales, and driving revenue growth.

6. Sales Management
• Sales management refers to the process of planning, implementing, and controlling sales activities
within an organization. It involves overseeing the sales operations, setting targets, managing sales
teams, and ensuring that sales goals are met efficiently and effectively

7. Key aspects of sales management include:
• Setting Objectives: Defining sales targets and goals that align with the overall business
objectives.
• Sales Planning: Developing strategies and tactics to achieve sales targets, including market
analysis, product positioning, pricing strategies, and distribution channels.

8. • Sales Organization: Structuring the sales force, assigning territories, and
defining roles and responsibilities within the sales team.

9. • Recruitment and Training: Hiring and training sales personnel to ensure they have the necessary
skills and knowledge to perform their roles effectively.
• Motivation and Compensation: Implementing incentive programs and compensation plans to
motivate the sales team and reward performance

10. Monitoring and Evaluation: Tracking sales performance against targets, analyzing sales data, and
making adjustments to strategies as needed.
Customer Relationship Management (CRM): Managing relationships with customers to build loyalty and enhance
repeat sales

11. Forecasting: Predicting future sales trends and demand to inform business decisions and resource
allocation.

12. Objectives of Sales Management:
1. Achieving Sales Targets: The primary objective is to meet or exceed sales targets set by the
organization. This involves setting clear, achievable goals for sales teams and ensuring they are
effectively pursued.
2. Maximizing Revenue: Sales management aims to maximize revenue generation through effective
sales strategies, customer relationship management, and market penetration.
3. Market Expansion: Expanding market reach and gaining new customers are crucial objectives.
Sales management focuses on identifying and targeting new market segments and geographical
areas.

13. 4.Building Customer Relationships: Developing strong relationships with customers is essential for
long-term business success. Sales management aims to enhance customer satisfaction and loyalty.
5.Optimizing Sales Processes: Improving the efficiency and effectiveness of sales processes is
another objective. This includes streamlining sales operations, reducing costs, and eliminating
bottlenecks.

14. • 6.Market Intelligence: Sales management gathers market intelligence to understand customer
needs, competitor activities, and industry trends. This information informs strategic decisions and
improves sales strategies.
7.Sales Team Development: Developing the skills and capabilities of the sales team is crucial. Sales
management focuses on training, coaching, and motivating sales personnel to improve their
performance

15. FUNCTIONS OF SALES MANAGEMENT
• Set Targets
• A sales manager must be able to set realistic targets for their team, based on previous
performance and in line with the organisation’s overarching strategy. Target setting should take
into account sales team skills and each person’s track record up until that point.
• Manage The Sales Process
• Customers are hardly ever going to be at the same stage of a company’s sales process at the exact
same time. A sales manager must understand the sales process from start to finish, and be able to
manage this process as and when they spot potential conversion roadblocks.

16. • Improve Efficiency
• This management of the steps of the sales process is another function of sales management. It
involves assessing every interaction between the brand and the potential customers and coming
up with ways to rectify hurdles and capitalise on opportunities, thereby improving the efficiency
of the sales process.
•
• Identify Excellence
• Sales management is also a people role. One function is to ensure that the personnel conducting
lower-level sales activities are managed correctly and efficiently. A sales manager should monitor
how well salespeople perform and step in to congratulate and motivate top performers.

17. Setting up of Sales organisation.
• Define Sales Objectives and Strategy
 Set Clear Objectives: Determine specific sales goals and targets that align with the overall
business objectives, such as revenue targets, market share goals, or customer acquisition metrics.
 Develop Sales Strategy: Outline the strategies and tactics to achieve the objectives, including
market segmentation, product positioning, pricing strategies, and sales channels.

18. Sales Organization Structure
 . Choose the Right Structure: Decide on the type of sales organization structure that best fits
your business model and objectives. Common structures include:
o Territorial: Sales teams are organized by geographic territories.
o Product: Sales teams specialize in selling specific product lines or categories.
o Customer Type: Sales teams focus on different customer segments (e.g., B2B vs. B2C).
o Matrix: Combination of different structures based on factors like geography, product, or
customer type.

19. • Define Roles and Responsibilities: Clearly outline roles such as sales representatives, sales
managers, account executives, and sales support staff. Define responsibilities for each role to avoid
confusion and overlap

20. Recruitment and Training
 Recruit Sales Talent: Identify and hire individuals with the right skills, experience, and cultural
fit for your sales organization. Consider factors such as industry knowledge, sales expertise, and
interpersonal skills.
 Provide Training and Development: Implement training programs to equip sales teams with
product knowledge, sales techniques, company processes, and soft skills like negotiation and
communication.

21. Sales Process and Workflow
 Develop Sales Process: Define the stages of the sales process from lead generation to closing the
sale and post-sale support. Create standardized procedures and workflows to streamline operations
and ensure consistency.
 Implement Sales Tools: Provide sales teams with necessary tools and technologies such as CRM
(Customer Relationship Management) systems, sales automation software, and analytics tools to
manage leads, track sales activities, and analyze performance.

22. Performance Management and Metrics
 Set Performance Metrics: Establish key performance indicators (KPIs) to measure sales
performance, such as sales revenue, conversion rates, customer acquisition cost (CAC), and sales
cycle length.
• Implement Performance Reviews: Conduct regular performance reviews and provide feedback to
sales teams. Use data-driven insights to identify strengths, weaknesses, and areas for improvement

23. Sales Compensation and Incentives
• . Design Compensation Plans: Develop competitive and motivating compensation plans that align
with sales objectives. Consider commission structures, bonuses, incentives, and non-monetary
rewards to reward top performers and drive desired behaviors.

24. Integration with Other Departments
• . Collaborate with Marketing: Ensure alignment between sales and marketing teams to generate
leads, support campaigns, and provide feedback on market trends and customer needs.
 Coordinate with Operations: Work closely with operations, finance, and other departments to
ensure smooth order processing, delivery logistics, and financial transactions.

25. Continuous Improvement
 Monitor and Adapt: Continuously monitor sales performance, market conditions, and customer
feedback. Adapt strategies and tactics as needed to optimize sales effectiveness and achieve
business goals.
 Feedback Loop: Establish a feedback loop where sales teams can provide insights and
suggestions for improvement based on their interactions with customers and prospects.

26. 7 Steps of Selling Process

28. 7-step sales process
1Prospecting
• The first step in the sales process is prospecting. In this stage, you find potential customers and
determine whether they have a need for your product or service—and whether they can afford
what you offer. Evaluating whether the customers need your product or service and can afford it is
known as qualifying

29. 2. Preparation
• The next step is preparing for initial contact with a potential customer, researching the market and
collecting all relevant information regarding your product or service. Develop your sales
presentation and tailor it to your potential client’s particular needs
• .

30. 3.Approach
• Next, make first contact with your client. This is called the approach. Sometimes this is a face-to-
face meeting, sometimes it’s over the phone. There are three common approach methods
 Premium approach: Presenting your potential client with a gift at the beginning of your
interaction
 Question approach: Asking a question to get the prospect interested
 Product approach: Giving the prospect a sample or a free trial to review and evaluate your service

31. 4. Presentation
• In the presentation phase, you actively demonstrate how your product or service meets the needs of
your potential customer. The word presentation implies using PowerPoint, but it doesn’t always
have to be that way—you should actively listen to your customer’s needs and then act and respond
accordingly.

32. 5. Handling objections
• Perhaps the most underrated step of the sales process is handling objections. This is where you
listen to your prospect’s concerns and address them. It’s also where many unsuccessful salespeople
drop out of the process—44% of salespeople abandoning pursuit after one rejection,
• 22% after two rejections, 14% after three, and 12% after four, even though 80% of sales require at
least five follow-ups to convert. Successfully handling objections and alleviating concerns
separates good salespeople from bad and great from good.

33. 6. Closing
• In the closing stage, you get the decision from the client to move forward. Depending on your
business, you might try one of these three closing techniques.
 Alternative choice close: Assuming the sale and offering the prospect a choice, where both
options close the sale—for example, “Will you be paying the whole fee up front or in
installments?” or “Will that be cash or charge?”
 Extra inducement close: Offering something extra to get the prospect to close, such as a free
month of service or a discount
 Standing room only close: Creating urgency by expressing that time is of the essence—for
example, “The price will be going up after this month” or “We only have six spots left”

34. 7.Follow-up
• Once you have closed the sale, your job is not done. The follow-up stage keeps you in contact with
customers you have closed, not only for potential repeat business but for referrals as well. And
since retaining current customers is six to seven times less costly than acquiring new ones,
maintaining relationships is key.

35. Managing a sales force
• involves overseeing and coordinating the activities of a team of sales professionals to achieve sales
targets and contribute to the overall success of the organization. Effective sales force management
encompasses several key aspects:
• 1. Recruitment and Selection
 Identify Talent: Recruit individuals with the right skills, experience, and cultural fit for the sales team.
 Define Job Roles: Clearly outline roles and responsibilities to ensure clarity and focus among team
members.
 Interview and Assess: Conduct thorough interviews and assessments to evaluate candidates,
communication skills, and ability to work in a team.

36. 2.Training and Development
• . Onboarding: Provide comprehensive onboarding to familiarize new hires with company policies,
products/services, sales processes, and CRM systems.
 Continuous Training: Offer ongoing training programs to enhance sales skills, product
knowledge, industry trends, and customer relationship management.
 Skill Enhancement: Focus on improving negotiation skills, objection handling, closing
techniques, and effective communication.

37. 3. Setting Goals and Targets
 Establish Clear Objectives: Define measurable sales goals, targets, quotas, and key performance
indicators (KPIs) aligned with the company's strategic objectives.
 Individual Targets: Assign individual targets based on territory, product focus, or customer
segment to motivate and focus sales efforts.
 Incentives and Rewards: Design compensation plans, bonuses, and incentives that reward
achievement of sales targets and exceptional performance.

38. 4.Performance Management
 Regular Monitoring: Monitor and track sales performance against targets using CRM tools and
sales analytics.
 Performance Reviews: Conduct regular performance reviews to provide feedback, identify
strengths and areas for improvement, and support professional growth.
 Coaching and Support: Offer coaching and mentoring to help salespeople overcome challenges,
refine their approach, and achieve their full potential.

39. 5. Sales Strategy and Planning
 Develop Sales Strategies: Collaborate with marketing and product teams to develop effective
sales strategies, pricing strategies, and promotional campaigns.
 Territory Management: Allocate sales territories strategically to optimize coverage and
maximize opportunities.
• Forecasting: Use data and market insights to forecast sales trends, anticipate demand, and allocate
resources effectively

40. 6. Team Collaboration and Communication
 Foster Team Collaboration: Encourage collaboration among sales team members to share best
practices, insights, and strategies for success.
 Regular Communication: Maintain open lines of communication to ensure alignment with
company goals, updates on product/service offerings, and changes in market conditions.
 Sales Meetings: Conduct regular sales meetings to review progress, discuss challenges, share
successes, and reinforce team unity.

41. 7. Motivation and Engagement
 Recognition and Rewards: Acknowledge achievements, milestones, and exemplary performance
publicly to boost morale and motivation.
 Team Building Activities: Organize team-building activities, incentives, and social events to
foster camaraderie and a positive team culture.
• Career Development: Support career growth and advancement opportunities within the sales team
through mentoring, skill development, and promotional pathways

42. 8. Adaptation and Innovation
 Adapt to Market Changes: Stay agile and responsive to changes in market dynamics, customer
preferences, and competitive landscape.
• Encourage Innovation: Foster a culture of innovation where salespeople are encouraged to
propose new ideas, approaches, and strategies to drive sales growth

43. • Thank You