The document provides an overview of sales management, personal selling, and sales forecasting techniques. It discusses key concepts such as the sales management process, goals of sales management, analyzing market demand and sales potential, and the different stages in the personal selling process. Techniques for sales forecasting mentioned include the jury method/executive opinion method and the Delphi method.

2. Sales volume

3. Contribution to profit

5. To facilitate the development

6. Coordination and balance

7. Interdepartmental conflicts

8. SALES MANAGEMENT PROCESS

9. A motivated sales team always achieve profitable goal for their organization. In today’s globalized world the success of the organization depend on the success of its employees. Whole management of sales can be improve by the process and different steps of sales management, which is as follows:

10. Planning and Control:

11. “It reduces hesitancy and false steps”-Henry fayol

12. Planning is looking ahead on the basis of the present and the immediate past. And Control operates on everything – things, people, actions.

13. Reports:

14. i)daily report

15. ii)weekly report

16. iii)tour programme

17. Monthly Performance Review:

18. Each sales rep to report personally to the branch office once in a month.

19. Sales Training:

20. Presentation techniques

21. Techniques to prompt and handle participation

22. The methodology of role-playing, which can be valuable assistance in developing sales skills.

23. The use of training films.

24. Presentational techniques:

25. This section is designed to highlight key factors which can be used to make your presentation more effective.

26. Ensuring that learning takes place:

28. ROLE OF SALES MANAGER

29. A successful sales manager must posses administrative , conceptual , technical , and human relation skill which a salesman may not possess. Of course, selling experience is an asset because a sales meneger manages the sales force that performs the selling job. But both these are two different aspects. A successful salesman may not always make a successful sales manager.

30. A sales manager jobs has two dimensions ----- planning & operating

31. Planning function includes the following:

32. Design a sales programme.

33. Establish and manage a sales organisation.

34. Control the sales performance.

35. Set the sales goals, formulate the sales policies, and design the sales strategies.

37. Interact with other departments.

38. Interact with the trade and customers.

39. Interact with the marketing department and report to the marketing manager.

40. Characteristics of Sales managers

41. A sales manager must visualize.

42. A sales manager must do the right selection.

43. He should do the proper time management.

45. Establish product & ongoing relationship with the sales executive.

46. Established product & new relationship.

47. New product & ongoing relationship.

49. Mental qualities

50. Sociability

51. Vocational skills

52. Communication ability

53. Patience

54. Determination

56. Maximum contribution to profits

57. Continuing growth

58. To fulfill these goals and objectives the top management delegates power to marketing management which further pass it to sales management which finally set the future operations.

59. GOAL SETTING PROCESS:

60. The duty of a sales manager is to look after and managing the company’s personal selling for achieving this goal he has to adopt sales management goal setting process which is as follows:

61. Analysis :

62. (a)to analyse the sales records

63. (b)reports of sales people

64. (c) knowing market trends

65. (d) other environmental factors

66. Planning :

67. (a) formulating goals for the company’s sales efforts

68. (b)developing sales strategies and policies for achieving those goals

69. Organization :

70. (a)formation of sales force

71. (b)delegation of authority for achieving company’s goal

72. Direction :

73. (a)to supervise and implement the plans properly and in the direct direction

74. (b)for this proper communication motivation and right leadership is required

75. Control :

76. (a)to find out the difference between actual and targeted results

77. (b)to find out the cause of deviation , if any

79. Current market demand : it consist of two types of assessment which are:

80. Total market demand : this can be calculated by sales forecasting.

81. Area market demand :

82. (i)It refers to the demand within a particular area which can be either a district, state or country.

83. (ii)It has two methods

84. (a) Market build up method: It identifies :

85. (i)the quantity of potential buyers in each market and

86. (ii)to estimate the quantity of their potential buying

87. (b)Market factor index method : It identifies :

88. (i)those market factors which have coordination with market potential and

89. (ii)then these factors unite them with a weighted index

90. Future market demand includes the following:

91. (i)forecasting total demand and

93. Other firms lack distributive networks to reach every potential customer .

94. Others do not consider their total sales potential due to lack of their financial resources

95. Still others are more profit oriented rather sales oriented.

96. Thus the estimate for sales potential shows how much a firm can sell if it had all necessary requirements and ready to use them.

98. It is also a kind of expert opinion which is used for broad based future estimates. It this method a sequence of questionnaires are put on a panel of experts in this field. All members provide their individual information to others in the panel. Then panel is asked to check the questions which are important to the forecast. Their answers and reactions are analysed and if there is any sharp differences in opinions, it is again discussed and final forecast is formulated.

99. Sales force composite method

100. The sales forecasting is done by sales force and is also a judgement based method. In it each salesman predict the forecast for his territory. All such forecasts are then consolidated at regional level and the sum of all these forecasts develops into the firm’s forecast . It is thus called a grass root method as the judgement of the are nearest to the market place forms the basis of the forecast.

101. User Expectation method/survey of consumer’s opinion method

102. The sales forecasting is done after surveying the buyer’s intentions. A list is demand forecast is consolidated.

103. Thus, the survey of buyer will provide-

104. The total likely consumption of the product.

105. The consumer’s buying plan.

106. The market share for the enterprise.

107. Market share method

108. The company first chalk out the industry forecast and then applies the market share factor of the company forecast. The market share factor is prepared from company’s past trends, present position, plans for future and brand preference etc. It requires great expertise to correctly assess through marketing intelligence, its competitors plans, policies and activities.

109. Analytical and statistical methods/Trend analysis

110. Under this method of sales forecasting , the past data of sales of the enterprise are analysed and the trend is established. Forecasting for the future are made on the basis of this trend.

111. Market survey method

112. This method is most suitable for the sales forecasting of the new product. Under this method , some certain segments are selected and the product is introduced in these segments only. The result of sales in these segments are collected and analysed and on the basis of these results, the sales forecasts are made for the whole market.

113. Sales Budget:

114. Sales budget is an important part of sales forecasting. A sales budget is a forecasting of a new product or of an enterprise for a certain period of time. Sales budget is prepared after preparing sales forecast. Sales budget is considered to be a most impotent budget of an enterprise budget because all other budgets, such as –production budget, Raw Materials budget, labour budget, plant budget, overheads budget etc. A sales budget is prepared by sales manager or marketing manager with the help of marketing research manager, regional sales manager, branch manager and salesman.

115. Factors to be considered while preparing a sales budget:

116. There are many factors which must be considered while preparing a sales budget. It can be divided into following two parts-

117. Internal factors:

118. Important internal factors which affecting the sales budget are as under-

119. Volume of sales of the enterprise

120. Trend of the sales of the enterprise

121. Long term trend of the sales of the enterprise

122. Profitability of different products of the enterprise

123. Production capacity of the enterprise

124. Expansion programme of the plant of the enterprise

125. Plan of new products

126. Product diversification

127. Plan or product development

128. Seasonal fluctuations

129. Selling and distribution channels

130. Possibilities of marketing research

131. Price policy

132. Advertisement and sales promotion policy

133. Ability and efficiency of salesman,etc.

135. General atmosphere of the industrial development of the country

136. Condition of a particular industry

137. Changes in population

138. National production and per capita national income

139. Distribution of wealth in country

140. Situation of competition in the market

141. Changes in the needs , habits and tastes of consumers

142. Industrial and taxation policy of the government

143. Purchasing power of general public

145. Feasible having equal work load and equal potential.

147. Motivation

148. Ability and skill can be developed through education and training

149. Willingness and interest to perfect well can be achieved through proper motivation. Thus, motivation can enhance greater selling efficiency in the form of higher sales volumes.

150. A motive is an emotion within an individual which incites and encourage him to perform well.

152. Product – based organization

153. Territory based organization

154. National account based organization

156. It combines many types of sales force structures.

157. Sales people are trained for territorial or product or market structure knowledge.

159. It decides the company’s fate as revenues are provided through sales.

160. Its effectiveness determines overall marketing objectives of the firm.

162. It is usually fixed at the optimum level.

163. It includes expected level of sales together with the number of sales persons required for such sales.

164. Increasing the number of their sales representatives will increase both sales and costs.

166. Then, the call frequencies per year is established for each category.

167. The number of accounts for each category is multiplied by the call frequencies to find out the complete work load in sales call per year.

168. Through it, the number of calls a sales person can utilize per year is find out.

169. By dividing the total year calls needed with the average year calls done by the sales person can determine the number of sales persons required by the company.

170. The size of sales force depends upon its structure and productivity and some other factors.

171. The size is also changeable according to the company’s market conditions.

173. Size of sales company.

174. Rate of turn over and

176. For this, a sound recruitment policy is required for the success of any organization.

177. The management should choose the right man for the right job or else they will become burden on them.

178. A stable and efficient work force can only achieve organizational goals and objectives in a systematic planned manner.

179. Only a right type of sales force once recruited can increase sales and profit to an organization.

182. External sources

183. Advertisement

184. Employment agencies

185. Existing employees

186. Older people

187. Salesman of non-competing companies

188. Salesman of competing companies

189. Direct application

191. Or through complex system by using diverse mechanism to gather information about applicants for sales jobs.

192. A complex selection system is a set of successive screening such as

193. Applications

194. Preliminary interview

195. Qualifications

196. References

197. Testing

198. Physical conditions

200. Planning sales deals and

202. To remove tension

203. Keep them satisfied

204. Provide human treatment

205. Motivation tools

207. They very well know the motives, desires and ambitions of the sales persons and use this knowledge to guide them in their activities.

208. The leadership requires to keep good relationship with the sales personnel which requires skills, experience, maturity and common sense.

209. They should treat them fairly in assigning jobs, promotions and remunerations etc. Lec. 18<br />Training and compensating the sales force<br />The increasing demand of demand of present world of marketing requires competent and well trained salesman as a company’s success and progress depend greatly on the efficiency of its sales force. now-a-days only proper trained sales person can improve the maximum potentiality of any organization hence, well trained sales force can be a valuable asset for it to face the modern marketing. <br />