Module 1

1. Sales management
 Meaning and definition
 “Sales management is primarily the direction of salesmen, sales planning,
budgeting , policy making and merchandising and the integration in the
marketing program of all business activities that contributes to increase
sales and profits. “ – Hamton and Zalin
1.) It is the management of the sales force.This is a personnel –type function.
2.) sales management also organizes the selling effort.To do so, creates a
suitable organizational structure, with appropriate communication system.
3.) Sales management interfaces with other marketing functions while polices
of the functions are being formulated.
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2. Nature of sales Management
 The nature of sales management is very wide. It is an administrative ,
operating, as well as staff function. As such , sales management is both an
administrative as well an executive function that makes the selling system
alert, relevant, and effective.
 1. ) sales management is a part of branch to total management of the
enterprise.
 2. ) sales management is responsible for a part of marketing activities.
 3.)The scope of sales management is increasing rapidly.
 4.) Sales management includes recruitment , selection, equipping , assigning
supervising, controlling, routing, paying and motivating sales force.
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3. Scope of sales management
Achieve
Company
Goals
Manage
People Other Source
Finance $ Physical Informational
Sell
Assist others
Own
“Territory”
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4. Objectives of sales Management
1.) Establish distribution set –up.
2.) Maximization of sales.
3.) Maximization of profit.
4.) Increase of Market share.
5.) Ensuring Equity of shareholders.
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5. Types of sales Positions
1.) Delivery or Delivery sales Person ( response selling )
2.) Order –Taker (Response selling )
3.) Sales support people ( Missionary Selling ) /Technical sales Support / sales
Engineer, (Technical Selling)
4.) Demand Creators or Order – Getter ( Creative selling)
5.) Solution vendor (Business selling ) or Order Getter.
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6. Sales Leader levels in the organization
CEO
President
Vice President
National Sales leader
Zone sales leader
Regional sales leader
District sales leader
Assistant District Sales Leader
Non-managerial Salesperson
Sales Trainee Key Account
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7. Time spend in carrying – out Managerial Functions
Top Level Sales
managers
Middle Level
sales manager
First –Level sales
manager Supervisor
Planning
Organizing
Leading
Controlling
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8. Importance of sales Management
 1.) Helps to achieve organizational Board Objectives .
 2.) Helps in effective management of sales force.
 3.) Importance to top management.
 4.) Helps in Coordination.
 5.) Ensure Effective Salesmanship.
 6.) PromotesCustomer Satisfaction.
 7.) Helps in promoting standard of Living.
 8.) Helps to face Competition.
 9.) Helps in promoting foreign trade.
 10.) Creates employment Opportunities.
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9. Difference between sales management and
Marketing management.
Basic of
Difference
Sales Management Marketing Management
Meaning Sales management means planning ,
organization, Motivation and control of
personal selling function
Marketing management is the analysis and
enforcement of marketing programs for the
satisfaction of customers.
Scope Sales management is apart of marketing
management
Marketing management includes sales
management .
Birth The birth of sales management took place
after some years of industrial revolution .
The birth of marketing management took
place in the fifth decade of 20th century.
Objective The objective of sales is to maximize the
sales.
The objective of marketing management is the
maximum satisfaction of customers wants and
to utilize the available resources in the best
possible way so as to maximize profitability.
Satisfaction of wants The sales management lays emphasis on
the satisfaction of immediate wants of the
customers .
The marketing lays more emphasis on the
future needs of the customers.
SellersVS. buyer
Orientation
Sales management is seller’s oriented. Marketing management is buyer’s oriented.
Profit Sales management lays emphasis on
immediate profit .
Marketing management lays emphasis on long
term profit.
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10. Sales management process
Setting sales Force objectives
Creating a sales Force strategy
Recruiting the sales Force
Training the sales Force
Developing Motivation and compensation plans for the sales Force
Evaluating the sales Force
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11. Emerging trends in sales management
 1.) Revolution in technology.
 2.) sales force Diversity.
 3.) FormTransaction to relationships.
 4.) From Individuals to teams.
 5.) Forms sales volume to sales productivity.
 6.) Form management to leadership.
 7.) Form local to Global
 8.) Ethical and social issues.
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12. Personal Selling Definition & Objectives
 According to AMA ( American marketing Association ) “ personal selling is
oral presentation in a conversation with one or more prospective purchasers
for the purpose of making sales.
Objectives of personal selling
 To make search for new customers.
 To keep customers informed about the changes in the product line and
other aspects of making strategy.
 To increase the overall volume of sales.
 To keep sales records.
 To achieve profit objectives through increased sales.
 To obtain the desired market information.
 To remove doubt from the minds of customers.
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13. Functions & Principles selling
 FUNCTION :
 To make sales - Service to customers – Keep sales
records – Executive Functions –To develop Goodwill of
the company – to achieve sales targets.
 PRINCIPLES :
 Selling skills – company and product knowledge –
marketing and customer Knowledge –Time
management and area management.
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14. Advantages and disadvantages of Personal Selling
Advantages Disadvantages
Allowing for two-way interaction Inconsistent Message
Tailoring of the message Sales Force / management Conflict
Lack of Distraction High cost
Involvement in the decision
process
Limited Reach
Source of research Information Potential Ethical problems
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15. AIDASTheory of selling
A • Attention
I • Interest
D • Desire
A • Action
S • Satisfaction
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16. Emerging trends in selling
Consultative Sales person and other –Tangible Products
Sales Development
Sales Support
Missionary Sales person Sales engineer / Consultant
Sales Maintenance
Driver Seals person Inside Order taker Outside Order taker
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17. Techniques of sales forecasting / sales Forecasting methods
Forecasting
Methods
Estimating Current
methods
Market potential
estimation
Multiple factor
Index
Territory market
potential estimation
Brand Development
Index
Estimating Existing
and potential
Customers
Industry sales ad
market sales
Estimating Future
Demand
Qualitative methods
Executive Opinion
Sales Force
Composite Method
Historical , Analogy
method
Delphi Method
Survey of Buyer’s
expectations
Quantitative
methods
Trend Projection
Regressive Analysis
Projection of past
sales
In put - Out put
Analysis
Controlled market
Experiment
Statistical sampling
Exponential
Smoothing
Computer –
Assisted
Forecasting
Econometric
methods
Statistical demand
Analysis
Simulated market
Situation
Market factor
Analysis
Simultaneous
Equation method
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18. Ethical leadership
 Ethical leadership is leadership that is
involved in leading in a manner that respect
the rights and dignity of others. “ As leaders
are by nature in a position of social power,
ethical leadership focuses on how leaders use
their social power in the decisions they make,
actions they engage in, and ways they
influence others”
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19. Ethical leadership in sales organization
Team work Ambition Honesty
Efficiency Quality Accomplishment
Dedication
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20. Leadership styles influencing ethical decisions
 1.) Autocratic Leadership
 2.) Bureaucratic Leadership
 3.) Charismatic Leadership
 4.) Democratic Leadership or participative Leadership.
 5.) Laissez-Fair Leadership
 6.) People – oriented Leadership or relations – oriented
Leadership
 7.) Servant Leadership
 8.)Task – Oriented Leadership
 9.)Transactional Leadership
 10.)Transformational Leadership
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