B.Sc, MBA, (PhD)
PART I




INTRODUCTION TO
       SALES MANAGEMENT
CHAPTER 1

SALES MANAGEMENT:
ITS NATURE, REWARDS, AND
     RESPONSIBILITIES
LEARNING OBJECTIVES
A career in sales management is exciting and unique and
provides numerous opportunities. This chapter will do
the following:

 Provide you with an overview of a sales manager’s
  job.
 Introduce you to the various types of sales managers
  and the skills required of them.
 Discuss what a new manager experiences when
  promoted from a sales job.
Introduction
Sales Management is defined as “the planning, direction and control of personal selling,
including recruiting, selecting, equipping, assigning, routing, supervising, paying and
motivating as these tasks apply to the personal sales force”.

                        -Definition Committee of the American Marketing Association.

Sales force is responsible for the sale of products of a company and to add profit to the business
operations and fulfill social obligations. Sales force should be hardworking, result oriented, well
educated and competent to handle changing situations. Technical developments which are taking
place at a rapid speed have made the task of sales force more challenging.
Nature and Importance of Sales Management

1.         Sales management helps to achieve the organizational objectives.

2.         The main objectives of sales management is that products should be sold at that

      price which realizes profits.

3.          Buyers and sellers both have same types of business relationships. This

      relationship is based on exchange of goods, services and money.

4.         Sales person develops a positive relationship with the customers. The role of

      sales team is interdependent and success of one team member depends on the other.

5.         The sales team continuously monitor the customer preference, competitors‘

      situation, government policy and other regulatory bodies.
WHAT IS SALES
             MANAGEMENT?
Sales management is the attainment of sales force
goals in an effective and efficient manner through:
    • Planning
    • Staffing
    • Training
    • Leading
    • Controlling organizational resources
FIGURE 1.1 THE SALES MANAGEMENT PROCESS


                  Sales Management Functions
PLANNING

The conscious, systemic process of making
decisions about goals and activities that an
individual, group, work unit, or organization will
pursue in the future and the use of resources
needed to attain them.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS


                   Sales Management Functions
STAFFING

Activities undertaken to attract, develop, and
maintain effective sales personnel within an
organization.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS


                   Sales Management Functions
SALES TRAINING

The effort put forth by an employer to provide the
salesperson job-related culture, skills, knowledge,
and attitudes that result in improved performance
in the selling environment.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS


                   Sales Management Functions
LEADING


The ability to influence other people toward
the attainment of objectives.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS


                   Sales Management Functions
CONTROLLING

Monitoring sales personnel’s activities,
determining whether the organization is on target
toward its goals, and making corrections as
necessary.
FIGURE 1.1 IDEA OF THE SALES MANAGEMENT FUNCTIONS


                    Sales Management Functions
SALES MANAGEMENT OBJETIVES

Sales Volume

Contribution to Profits

Continuing Growth
SALES EXECUTIVE FUNCTION & QUALTIES

FUNCTIONS OF SALES EXECTIVE:

1.OPERATING FUNCTIONS   2 PLANNING FUNCTIONS.

OPERATING FUNCTIONS:

•SALES FORCE MANAGEMENT.

•HANDLING RELATIONSHIP WITH COMPANY AS WELL AS MARKETING
CHANNELS

•COMMUNICATING AND COORDINATING WITH OTHER MARKETING
EXECUTIVES AND REPORTING TO SOME SUPERIOR EXECUTIVES SUCH AS
VICE PRESIDENT- MARKETING.
 .
PLANNING FUNCTION:

SETTING PERSONAL SELLING GOAL

FORMULATING SALES POLICIES AND PERSONAL SELLING STRTEGIES

DESIGNING THE SALES PROGRAMMES

CONTROLLING SALES ACTIVITIES LIKE SALES VOLUME, SELLING
EXPENSES

FUNCTIONS OF THE SALES EXECTIVES DEPEND ON:

THE TYPE OF THE PRODUCT
THE SIZE OF THE COMPANY
THE TYPE OF SUPERVISORY ORGANIZATION.
QUALITIES OF SALES EXECTIVES:

Ability to define the position’s exact functions and duties in relation to the goals
to a company should expect to attain.

Ability to select and train capable subordinates and willingness to delegate
sufficient authority to enable them to carry out assigned tasks with minimum
supervision.

Ability to utilize time efficiently

Ability to allocate sufficient time for thinking and planning.

Ability to exercise skilled leadership
Salesmanship:

It is the art of successfully persuading prospects or customers to buy products or
services from which they can derive suitable benefits there by increasing their
total satisfactions.


Personal Selling:

Personal selling refers to personal
communication with a an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s
organization as being the source
of the message.
Differences between Salesmanship and
              Personal Selling

• Salesmanship                    • Personal Selling

• Narrow Concept                  • Broader Concept
• This involves only selling of   • Personal selling is meant for
  the product or service.           implementing marketing
• Salesmanship skills are used      programs.
  in personal selling.
• It’s a persuading activity.
Buyer-Seller Dyad:



Sociologists use the term “dyad” to describe the situation where
two people interact.

The interaction between sales person and prospect(or customer) is
known as “Buyer-Seller Dyad”
MAJOR PARTS OF AN
    ORGANIZATIONAL SYSTEM
Organizational effectiveness is the degree to which
the organization achieves a stated objective.

Organizational efficiency refers to the amount of
resources used to achieve an organizational goal.
FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY



                                  CEO

                                President                 T o p S a le s L e a d e r s
                                                                (S tr a te g ic )

                      Vice President of Marketing


                         National Sales Leader
                                                                        M id d le S a le s
                           Zone Sales Leader                               L ead ers
                                                                          (T a c tic a l)
                         Regional Sales Leader

                                                                                 F ir s t - L in e
                         District Sales Leader
                                                                                 S a le s L e a d e r s
                     Assistant District Sales Leader                             ( O p e r a t io n a l)
                      Nonmanagerial Salespeople
     Sales Trainee           Salesperson               Key Account
FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIES
BY ORGANIZATIONAL LEVEL



       Top Managers

                      P la n n in g                            S ta f f in g T ra in -          L e a d in g             C o n t r o llin g
                                                                               in g
                         35%                                     10%           5%                  30%                        20%



          Middle Managers
           P la n n in g                     S t a f f in g T r a in in g                L e a d in g             C o n t r o llin g
              28%                               10%            10%                          30%                        22%



          First-Line Managers
      P la n n in g               S ta f f in g                         T r a in in g              L e a d in g         C o n t r o llin g
         15%                         20%                                   25%                        25%                    15%
FIGURE 1.5 A SALES PERSONNEL CAREER PATH


                                                                                           President


                                                                          Vice President of Marketing


                                                                 National Sales Mgr.


                                                     Zone Sales Manager


                                       Regional Sales Manager


                       District Sales Manager


             Key Account Salesperson


       Salesperson


 Sales Trainee
SALES MANAGEMENT SKILLS
1. CONCEPTUAL AND DECISION SKILLS
Refer to the cognitive ability to see the organization as a
whole and the relationships among its parts.

2. PEOPLE SKILLS
Involve the ability to work with and through other people and
to work effectively as a group member.

3. TECHNICAL SKILLS
The ability to perform a specialized task that involves a certain
method or process.
PROMOTION FROM SALESPERSON
    TO SALES MANAGER
Changes that occur when a person becomes a new
manager:
  1.
  2. Goals change
  3. Responsibilities change
  4. Satisfaction changes
  5. Job skill requirements change
  6. Relationships change
FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICAL
SKILLS TO SALES LEADER LEVEL




                                                C o n c e p tu a l a n d   P e o p le S k ills   T e c h n ic a l S k ills
                                                 D e c is io n S k ills

 T o p S a le s L e a d e r s


 M id d le S a le s L e a d e r s


 F ir s t - L in e S a le s L e a d e r s


 N o n m a n a g e r ia l S a le s p e o p le
THE PROMOTION EXPERIENCE
Phase One – Immobilization
Phase Two – Minimization or Denial of Change
Phase Three – Depression
Phase Four – Acceptance of Reality
Phase Five – Testing
Phase Six – Searching for Meanings
Phase Seven – Internalization
PROBLEMS NEW MANAGERS EXPERIENCE

  • Lack of preparation for the job.
  • Expected to step into the job and
    immediately function effectively.
  • Often lacks an immediate peer group.
MAKING A SUCCESSFUL TRANSITION TO
MANAGEMENT

   • Have a learning attitude – a
     willingness to learn, change, adapt,
     and seek help when needed.
   • Having realistic expectations.
   • Leave the old job behind.
THE BOTTOM LINE

Skilled sales managers are the key to a successful organization.
Sales managers have five functions that, when combined, can
allow them to achieve the goals desired by higher levels of
management.
The various types of sales managers can be broken down into the
categories of vertical and horizontal.
Most corporations hire a person who cannot only sell but who
also shows the potential to one day become a sales manager.

Sales management by gururaj

  • 1.
  • 2.
    PART I INTRODUCTION TO SALES MANAGEMENT
  • 3.
    CHAPTER 1 SALES MANAGEMENT: ITSNATURE, REWARDS, AND RESPONSIBILITIES
  • 4.
    LEARNING OBJECTIVES A careerin sales management is exciting and unique and provides numerous opportunities. This chapter will do the following:  Provide you with an overview of a sales manager’s job.  Introduce you to the various types of sales managers and the skills required of them.  Discuss what a new manager experiences when promoted from a sales job.
  • 5.
    Introduction Sales Management isdefined as “the planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal sales force”. -Definition Committee of the American Marketing Association. Sales force is responsible for the sale of products of a company and to add profit to the business operations and fulfill social obligations. Sales force should be hardworking, result oriented, well educated and competent to handle changing situations. Technical developments which are taking place at a rapid speed have made the task of sales force more challenging.
  • 6.
    Nature and Importanceof Sales Management 1. Sales management helps to achieve the organizational objectives. 2. The main objectives of sales management is that products should be sold at that price which realizes profits. 3. Buyers and sellers both have same types of business relationships. This relationship is based on exchange of goods, services and money. 4. Sales person develops a positive relationship with the customers. The role of sales team is interdependent and success of one team member depends on the other. 5. The sales team continuously monitor the customer preference, competitors‘ situation, government policy and other regulatory bodies.
  • 7.
    WHAT IS SALES MANAGEMENT? Sales management is the attainment of sales force goals in an effective and efficient manner through: • Planning • Staffing • Training • Leading • Controlling organizational resources
  • 8.
    FIGURE 1.1 THESALES MANAGEMENT PROCESS Sales Management Functions
  • 9.
    PLANNING The conscious, systemicprocess of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.
  • 10.
    FIGURE 1.1 THESALES MANAGEMENT PROCESS Sales Management Functions
  • 11.
    STAFFING Activities undertaken toattract, develop, and maintain effective sales personnel within an organization.
  • 12.
    FIGURE 1.1 THESALES MANAGEMENT PROCESS Sales Management Functions
  • 13.
    SALES TRAINING The effortput forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.
  • 14.
    FIGURE 1.1 THESALES MANAGEMENT PROCESS Sales Management Functions
  • 15.
    LEADING The ability toinfluence other people toward the attainment of objectives.
  • 16.
    FIGURE 1.1 THESALES MANAGEMENT PROCESS Sales Management Functions
  • 17.
    CONTROLLING Monitoring sales personnel’sactivities, determining whether the organization is on target toward its goals, and making corrections as necessary.
  • 18.
    FIGURE 1.1 IDEAOF THE SALES MANAGEMENT FUNCTIONS Sales Management Functions
  • 19.
    SALES MANAGEMENT OBJETIVES SalesVolume Contribution to Profits Continuing Growth
  • 20.
    SALES EXECUTIVE FUNCTION& QUALTIES FUNCTIONS OF SALES EXECTIVE: 1.OPERATING FUNCTIONS 2 PLANNING FUNCTIONS. OPERATING FUNCTIONS: •SALES FORCE MANAGEMENT. •HANDLING RELATIONSHIP WITH COMPANY AS WELL AS MARKETING CHANNELS •COMMUNICATING AND COORDINATING WITH OTHER MARKETING EXECUTIVES AND REPORTING TO SOME SUPERIOR EXECUTIVES SUCH AS VICE PRESIDENT- MARKETING. .
  • 21.
    PLANNING FUNCTION: SETTING PERSONALSELLING GOAL FORMULATING SALES POLICIES AND PERSONAL SELLING STRTEGIES DESIGNING THE SALES PROGRAMMES CONTROLLING SALES ACTIVITIES LIKE SALES VOLUME, SELLING EXPENSES FUNCTIONS OF THE SALES EXECTIVES DEPEND ON: THE TYPE OF THE PRODUCT THE SIZE OF THE COMPANY THE TYPE OF SUPERVISORY ORGANIZATION.
  • 22.
    QUALITIES OF SALESEXECTIVES: Ability to define the position’s exact functions and duties in relation to the goals to a company should expect to attain. Ability to select and train capable subordinates and willingness to delegate sufficient authority to enable them to carry out assigned tasks with minimum supervision. Ability to utilize time efficiently Ability to allocate sufficient time for thinking and planning. Ability to exercise skilled leadership
  • 23.
    Salesmanship: It is theart of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits there by increasing their total satisfactions. Personal Selling: Personal selling refers to personal communication with a an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicator’s organization as being the source of the message.
  • 24.
    Differences between Salesmanshipand Personal Selling • Salesmanship • Personal Selling • Narrow Concept • Broader Concept • This involves only selling of • Personal selling is meant for the product or service. implementing marketing • Salesmanship skills are used programs. in personal selling. • It’s a persuading activity.
  • 25.
    Buyer-Seller Dyad: Sociologists usethe term “dyad” to describe the situation where two people interact. The interaction between sales person and prospect(or customer) is known as “Buyer-Seller Dyad”
  • 26.
    MAJOR PARTS OFAN ORGANIZATIONAL SYSTEM Organizational effectiveness is the degree to which the organization achieves a stated objective. Organizational efficiency refers to the amount of resources used to achieve an organizational goal.
  • 27.
    FIGURE 1.3 SALESLEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY CEO President T o p S a le s L e a d e r s (S tr a te g ic ) Vice President of Marketing National Sales Leader M id d le S a le s Zone Sales Leader L ead ers (T a c tic a l) Regional Sales Leader F ir s t - L in e District Sales Leader S a le s L e a d e r s Assistant District Sales Leader ( O p e r a t io n a l) Nonmanagerial Salespeople Sales Trainee Salesperson Key Account
  • 28.
    FIGURE 1.4 PERCENTAGEOF TIME SPENT ON FUNCTIONAL ACTIVITIES BY ORGANIZATIONAL LEVEL Top Managers P la n n in g S ta f f in g T ra in - L e a d in g C o n t r o llin g in g 35% 10% 5% 30% 20% Middle Managers P la n n in g S t a f f in g T r a in in g L e a d in g C o n t r o llin g 28% 10% 10% 30% 22% First-Line Managers P la n n in g S ta f f in g T r a in in g L e a d in g C o n t r o llin g 15% 20% 25% 25% 15%
  • 29.
    FIGURE 1.5 ASALES PERSONNEL CAREER PATH President Vice President of Marketing National Sales Mgr. Zone Sales Manager Regional Sales Manager District Sales Manager Key Account Salesperson Salesperson Sales Trainee
  • 30.
    SALES MANAGEMENT SKILLS 1.CONCEPTUAL AND DECISION SKILLS Refer to the cognitive ability to see the organization as a whole and the relationships among its parts. 2. PEOPLE SKILLS Involve the ability to work with and through other people and to work effectively as a group member. 3. TECHNICAL SKILLS The ability to perform a specialized task that involves a certain method or process.
  • 31.
    PROMOTION FROM SALESPERSON TO SALES MANAGER Changes that occur when a person becomes a new manager: 1. 2. Goals change 3. Responsibilities change 4. Satisfaction changes 5. Job skill requirements change 6. Relationships change
  • 32.
    FIGURE 1.6 RELATIONSHIPOF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICAL SKILLS TO SALES LEADER LEVEL C o n c e p tu a l a n d P e o p le S k ills T e c h n ic a l S k ills D e c is io n S k ills T o p S a le s L e a d e r s M id d le S a le s L e a d e r s F ir s t - L in e S a le s L e a d e r s N o n m a n a g e r ia l S a le s p e o p le
  • 33.
    THE PROMOTION EXPERIENCE PhaseOne – Immobilization Phase Two – Minimization or Denial of Change Phase Three – Depression Phase Four – Acceptance of Reality Phase Five – Testing Phase Six – Searching for Meanings Phase Seven – Internalization
  • 34.
    PROBLEMS NEW MANAGERSEXPERIENCE • Lack of preparation for the job. • Expected to step into the job and immediately function effectively. • Often lacks an immediate peer group.
  • 35.
    MAKING A SUCCESSFULTRANSITION TO MANAGEMENT • Have a learning attitude – a willingness to learn, change, adapt, and seek help when needed. • Having realistic expectations. • Leave the old job behind.
  • 36.
    THE BOTTOM LINE Skilledsales managers are the key to a successful organization. Sales managers have five functions that, when combined, can allow them to achieve the goals desired by higher levels of management. The various types of sales managers can be broken down into the categories of vertical and horizontal. Most corporations hire a person who cannot only sell but who also shows the potential to one day become a sales manager.