The document discusses key aspects of sales management including: 1. Calculating gross margin and net profit from sales figures. 2. Setting sales objectives that align with broader corporate goals and developing strategies and tactics to achieve these objectives such as targeting specific customers or products. 3. Organizing the sales team and determining the optimal sales structure, compensation plans, and approaches for activities like introducing new products. The overall focus is on planning sales activities, setting objectives, and organizing the sales force to execute strategies and meet targets in an effective manner.

1. Sales Management
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2. Sales Management
1. Sales – Cost of Sales = Gross Margin
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3. Sales Management
1. Sales – Cost of Sales = Gross Margin
GM – Expenses = Net Profit
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4. Sales Management
1. Sales – Cost of Sales = Gross Margin
GM – Expenses = Net Profit
2. Volumes vs Profits
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5. Sales Management
1. Sales – Cost of Sales = Gross Margin
GM – Expenses = Net Profit
2. Volumes vs Profits
3. Marketing vis-à-vis Sales
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6. 4. Responsibilities
 Sales Planning / Budgeting
 Estimating Demand / Forecasting Sales
 Understanding the Sales Organization
 Recruiting / Training Selecting Sales Force
 Compensating / Motivating / Leading
 Sales Quotas
 Analyzing Sales Cost / Volume / Profit
 Evaluating Sales Force
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7. 5. Recent Trends in Sales Management
 Foreign Competition
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8. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
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9. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
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10. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
 IT & Communications
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11. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
 IT & Communications
 Women in Sales Careers
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12. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
 IT & Communications
 Women in Sales Careers
 Controlling Costs
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13. Effective Sales Executive
What does he do?
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14. Effective Sales Executive
What does he do?
i. Operating Function
ii. Planning Function
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15. Planning Function
 Selling Accounts
 Sales Force Management
 Coordinating with other functions
 Dealer Handling
 Communicating / Coordinating with Marketing
 Sets Personal Selling Goals
 Sales Organization
 Selling Strategies
 Staffing, Developing Skills
 Providing Leadership
 Developing Sales Programs
 Customer / Dealer Relationships
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16. The Effective Sales Executive
Who is an effective sales executive?
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17. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
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18. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
 Able to select & train capable subordinates &
delegates authority – empowerment – least
supervision
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19. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
 Able to select & train capable subordinates &
delegates authority – empowerment – least
supervision
 Time utilization
Time for thinking & planning
Time for office / field
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20. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
 Able to select & train capable subordinates &
delegates authority – empowerment – least
supervision
 Time utilization
Time for thinking & planning
Time for office / field
 Act as skilled leaders, motivate people
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21. Interrelationships
Top Management
 Integrate personal goals with organization
 Don’t aim to be indispensable; delegate
authority
 Good problem solvers & decision makers
 Keep management involved
 Listens & keeps record of important
conversations
 Follows given code of conduct
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22. Product Management
Regular involvement for new products, product
quality, services rendered
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23. Pricing Management
Since sales has the pulse of the market policies are co-
operative decisions.
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24. Distribution Management
Marketing channels determine the pattern of sales force
operations – the no. of outlets.
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25. Promotion Management
 SEs implement promotional plans.
 Personal selling is an important promotional
tool, expenses have to be controlled.
 Provide important information to advertising
department regarding consumers, motives,
behaviours
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26. Sales Planning
1. Setting Objectives
a) Internal Situation Analysis
 SWOT of Sales Force
 Who will sell, what selling methods,
what sales tools, what are available
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27. Sales Planning
1. Setting Objectives
a) Internal Situation Analysis
 SWOT of Sales Force
 Who will sell, what selling methods, what sales tools,
what are available
b) External Environment Audit
 PEST Analysis
 Competition
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28.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
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29.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
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30.  Sales objectives derived from broader Marketing
objectives / Corporate objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
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31.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
 Long Term vs Short Term, Accuracy decreases over
long periods …
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32.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
 Long Term vs Short Term, Accuracy decreases over
long periods …
 Output oriented: ‘Increase Sales’ (X)
Increase Sales by 10%
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33.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
 Long Term vs Short Term, Accuracy decreases over
long periods …
 Output oriented: ‘Increase Sales’ (X)
Increase Sales by 10%
 Measurable: ‘X’ no. of calls / month …
How to measure soft objectives?? Morale?
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34. 2. Determining Operations to meet Objectives
 Decide on Sales Strategies
SS: Operations which organize & direct
sales activities to help achieve objectives
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35. 2. Determining Operations to meet Objectives
 Decide on Sales Strategies
SS: Operations which organize & direct sales
activities to help achieve objectives
 Strategy for each objective ….
In Sync. with Corporate Objective ….
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36. 2. Determining Operations to meet Objectives
 Decide on Sales Strategies
SS: Operations which organize & direct sales activities to
help achieve objectives
 Strategy for each objective ….
In Sync. with Corporate Objective ….
‘Build’ – Emphasis on new / current A/cs
Increase Sales
‘Hold’ – Consolidating relationships to
improve organizational image
‘Harvest’ – Reduce overall operation costs
Sales directed to most
profitable customers
Objectives & strategies: corporate / sales have to be broken into
individual sales objectives.
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37. 3. Organizing for Action
Next Step: Objectives – tactics
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38. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
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39. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
 How is sales department working?
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40. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
 How is sales department working?
 Is compensation plan suitable? Is it in sync. with
industry average?
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41. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
 How is sales department working?
 Is compensation plan suitable? Is it in sync. with
industry average?
 How to introduce a new product line.
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42. 4. Implementing
Two fold role of Sales Manager
a) Division of responsibilities among
salespeople; tasks; time sequence;
Review Schedule
b) Communicate to and coach sales people to
implement sales strategies and actions
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43. 5. Measuring Results Against Standards
i. Establish Standards
ii. Measure Performance
iii. Reevaluate and correct variations from
standards
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44. 5. Measuring Results Against Standards
i. Establish Standards
ii. Measure Performance
iii. Reevaluate and correct variations from standards
Performance standards needed to measure results:
Industry averages, past sales force performance
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45. 5. Measuring Results Against Standards
i. Establish Standards
ii. Measure Performance
iii. Reevaluate and correct variations from standards
Performance standards needed to measure results: Industry
averages, past sales force performance
Performance measures:
Sales volumes, selling costs, market shares, profit margins
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46. 6. Re-evaluating and Control
 Can start mid way during implementation
of sales plan or at the end
 Monitored constantly for effective control
and to see objectives are met (annual target
10 crores: 2.5 per quarter)
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47. Why does planning fail?
1. Lack of understanding of important issues:
Sales objective different from corporate
objective….., SM planning without
reference to abilities of sales force,
Environmental changes…., Inadequate
understanding of competitors policies /
organization strength and weaknesses etc.
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48. Why does planning fail?
1. Lack of understanding of important issues: Sales objective
different from corporate objective….., SM planning without
reference to abilities of sales force, Environmental
changes…., Inadequate understanding of competitors
policies / organization strength and weaknesses etc.
2. Absence of proper planning:
SMs: May developed plan which are only numbers and don’t
focus on company issues, extra knowledge environment
competition.
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49. Why does planning fail? (Contd..)
3. Inadequate communication
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50. Why does planning fail? (Contd..)
3. Inadequate communication
4. Lack of sales force involvement:
If sales people are not involved during planning,
they are demotivated
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51. Why does planning fail? (Contd..)
3. Inadequate communication
4. Lack of sales force involvement:
If sales people are not involved during planning,
they are demotivated
5. Inaccuracy in sales planning
Mistakes in forecasting, budgeting and territory
management; plans more accurate with bottoms –
up approach; objectives should be set by top
management and supported by sales managers
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