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SALES
MANAGEMENT
    UNIT - 1
Evolution Of Sales Mgmt.
• Situation before industrial revolution in U.K.
  (1760AD)
• Situation after industrial revolutions in U.K.,
  and U.S.A.
• Marketing function splits into sales and other
  functions like market research, advertising,
  physical distribution
What is Sales Management?
• One definition: “The management of the
  personal selling part of a company’s marketing
  function.”
• Another definition: “The process of planning,
  directing, and controlling of personal selling,
  including recruiting, selecting, equipping,
  assigning, supervising, paying, and motivating
  the personal sales force.
Nature of Sales Management
• Its integration with marketing management
                                 Head-
                                Marketing




        Manager-    Manager –   Manager –   Manager –   Manager –
        Promotion    Market       Sales      Market     Customer
                    Research                Logistics    Service


• Relationship Selling
Objectives of Sales
           management

• Sales volume
• Contribution to profits
• Continuing growth
Other Objectives
• To design a sales programme
• To establish and manage a sales organization
• To control the sales performance, sales activities
  and expenditure
• To set the sale s goals, formulate the sales
  policies, and design the sales strategies.
• To mange the sales force
• To interact with other departments
• To interact with the trade and customers
Functions of sales executive

      Basically, the functions of sales executives has
been divided into two:-
• Operating functions
• Planning functions

Sales – cost of sales = gross margin.
Gross margin – expenses =net profit
Operating functions
• It includes:
  – Sales force management.
  – Handling relations with personnel(middlemen/
    customers).
  – Communicating and coordinating with other
    marketing executives.
  – Reporting to superior executives.
Planning functions
• It includes:
  – Sales programs
     • Setting personal selling goals
     • Formulating sales policies
     • Formulating selling strategies
  – Sales organisation and its control
     •   Designing and shaping the organisation
     •   For staffing
     •   For developing the skills.
     •   For providing leadership.
Relation with other
            executives
• Sales &Advertising: both stimulate demand.
  They need to be blended. Salespersons can
  improve advertising effectiveness. Advertising
  needs to support sales where and when they
  need it most.
• Sales & Marketing information: data is needed
  for analysis of sales problems, for determining
  sales potential. Raw data is collected by sales
  people.
Relation with other
             executives
• Sales and service: contributes to strategy success.
• Sales and distribution: minimizes stock out
  situation; improves inventory control; helps sales
  to focus on demand generation.
• Sales & Production: the amount of demand is
  assessed by the data provided by salesmen.
• Sales and R&D: the R&D is based highly on the
  changing needs, taste and preferences of people.
• Sales &Finance: the higher is the sale, more is the
  revenue earned by the company.
Importance Of Sales
            Management
•   Sales maximization
•   Profit maximization
•   Growth and development
•   Strong planning
•   Formation of organization
•   Advise to top management
•   Optimum relationship
Functions of a Sales
           Manager
Administrative functions
  Sales planning
  Sales administration
  Sales policy and strategies
  Sales forecasting
  Sales organization
  Coordination in advertising and sales promotion
  Communication
  Budgetary control
  Decision making
  Marketing research
Functions related to sale force management
  The sales force structure
  Selection of sales personnel
  Placement of sale personnel
  Training of sales personnel
  Remuneration of sales personnel
  Motivation of sales personnel
  Direction
  Control
  Internal and external relations
  Determination of territory size
  Fixing the sales quota
  Evaluation of performance
Qualities of a Sales Manager
 Physical qualities
   Sound health
   Cheerful
   Appearance

 Psychological qualities
   Quick action
   Confidence
   Coordination
   Tactful
   Initiative
Social qualities
  Social
  Courteous
  Good manner
  Co-operative

Character qualities
  Honesty and integrity
  Discipline
  Courage
  Determination
  Humanism
Sales Department Structure
           R & D Officer    Sales Personnel


          Advertisement
                            Sales Personnel
             Officer

          Sales Promotion
 Sales                      Sales Personnel
               Officer
Manager

           Sales Officer    Sales Personnel


           Credit Officer   Sales Personnel


          General Officer   Sales Personnel
Making Sales Management
             Effective
•   vision
•   market focus
•   clear guidance
•   a good team
•   spending time with the team
•   motivation
•   good communication
•   sales excellence
•   innovation
•   leadership
Thank You!

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Sales management

  • 1. SALES MANAGEMENT UNIT - 1
  • 2. Evolution Of Sales Mgmt. • Situation before industrial revolution in U.K. (1760AD) • Situation after industrial revolutions in U.K., and U.S.A. • Marketing function splits into sales and other functions like market research, advertising, physical distribution
  • 3. What is Sales Management? • One definition: “The management of the personal selling part of a company’s marketing function.” • Another definition: “The process of planning, directing, and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying, and motivating the personal sales force.
  • 4. Nature of Sales Management • Its integration with marketing management Head- Marketing Manager- Manager – Manager – Manager – Manager – Promotion Market Sales Market Customer Research Logistics Service • Relationship Selling
  • 5. Objectives of Sales management • Sales volume • Contribution to profits • Continuing growth
  • 6. Other Objectives • To design a sales programme • To establish and manage a sales organization • To control the sales performance, sales activities and expenditure • To set the sale s goals, formulate the sales policies, and design the sales strategies. • To mange the sales force • To interact with other departments • To interact with the trade and customers
  • 7. Functions of sales executive Basically, the functions of sales executives has been divided into two:- • Operating functions • Planning functions Sales – cost of sales = gross margin. Gross margin – expenses =net profit
  • 8. Operating functions • It includes: – Sales force management. – Handling relations with personnel(middlemen/ customers). – Communicating and coordinating with other marketing executives. – Reporting to superior executives.
  • 9. Planning functions • It includes: – Sales programs • Setting personal selling goals • Formulating sales policies • Formulating selling strategies – Sales organisation and its control • Designing and shaping the organisation • For staffing • For developing the skills. • For providing leadership.
  • 10. Relation with other executives • Sales &Advertising: both stimulate demand. They need to be blended. Salespersons can improve advertising effectiveness. Advertising needs to support sales where and when they need it most. • Sales & Marketing information: data is needed for analysis of sales problems, for determining sales potential. Raw data is collected by sales people.
  • 11. Relation with other executives • Sales and service: contributes to strategy success. • Sales and distribution: minimizes stock out situation; improves inventory control; helps sales to focus on demand generation. • Sales & Production: the amount of demand is assessed by the data provided by salesmen. • Sales and R&D: the R&D is based highly on the changing needs, taste and preferences of people. • Sales &Finance: the higher is the sale, more is the revenue earned by the company.
  • 12. Importance Of Sales Management • Sales maximization • Profit maximization • Growth and development • Strong planning • Formation of organization • Advise to top management • Optimum relationship
  • 13. Functions of a Sales Manager Administrative functions Sales planning Sales administration Sales policy and strategies Sales forecasting Sales organization Coordination in advertising and sales promotion Communication Budgetary control Decision making Marketing research
  • 14. Functions related to sale force management The sales force structure Selection of sales personnel Placement of sale personnel Training of sales personnel Remuneration of sales personnel Motivation of sales personnel Direction Control Internal and external relations Determination of territory size Fixing the sales quota Evaluation of performance
  • 15. Qualities of a Sales Manager Physical qualities Sound health Cheerful Appearance Psychological qualities Quick action Confidence Coordination Tactful Initiative
  • 16. Social qualities Social Courteous Good manner Co-operative Character qualities Honesty and integrity Discipline Courage Determination Humanism
  • 17. Sales Department Structure R & D Officer Sales Personnel Advertisement Sales Personnel Officer Sales Promotion Sales Sales Personnel Officer Manager Sales Officer Sales Personnel Credit Officer Sales Personnel General Officer Sales Personnel
  • 18. Making Sales Management Effective • vision • market focus • clear guidance • a good team • spending time with the team • motivation • good communication • sales excellence • innovation • leadership