Sales-Force-management-Chapter-4-Sales-Force-Management

1. © Oxford University Press 2011
Sales Management
Pradip Kumar Mallik,
Associate Professor,
Department of Business
Administration

2. © Oxford University Press 2011
Chapter - 4
Sales Force Management

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Learning Objectives
 Provide Insights into the conceptual
framework of sales management, its
task elements and functional
orientations.
 Understand the guidelines for planning
a sales operation, its implementation,
evaluation and controlling issues.
 Explain the environmental impact on
sales planning and the benefits of
understanding the environmental
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Learning Objectives
 Discuss the guidelines to plan a sales
operation.
 Discuss the role of strategic planning
on sales management.
 Give valuable inputs on the tasks and
roles of sales managers.
 Appreciate the essential qualities of a
sales manager.
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Definition: Sales Management
 The American Marketing Association
(AMA) defines sales management as
the planning, direction, and control of
personal selling including recruiting,
selecting, equipping, assigning,
routing, supervising, paying, and
motivating as these tasks apply to
personal sales force.
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Task Elements in Sales
Management
 Determining personal selling
objectives.
 Formulating sales policies.
 Mapping out sales strategies.
 Developing sales budgets.
 Deciding on the structure of the sales
network.
 Designing sales territories.
 Deciding the size of the salesforce.
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Task Elements in Sales
Management
 Fixing up target sales for each territory.
 Recruiting, selecting and training sales
force.
 Assigning salespeople to respective
territories and deciding sales quota.
 Supervising and motivating salespeople.
 Coordinating, evaluating and controlling
salespeople’s actions.
 Designing compensation package.
 Provising feedback to marketing.
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Functional Components of Sales
Management
 Sales Plan Formulation.
 Implementation of Sales Plan.
 Evaluating and Controlling the Sales
Operations.
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Formulation of Sales Plan
 To determine the direction of the
business by setting objectives.
 To lay down strategies and tactics to
implement the action plans.
 To develop the sales budget in order
to meet the expenses of sales plans
implementation.
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Implementation of Sales Plan
 Recruiting: Identifying potential pool of
candidates.
 Selection: Hiring suitable candidate.
 Training: Imparting knowledge, skills
and values.
 Deploying: Assigning suitable
territories.
 Motivating: Enhance willingness to
exert effort.
 Compensation: Giving financial 10

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Task Sequence
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Evaluating and Controlling the
Sales Operations
 Assess performance of salesperson.
 Compare planned and actual results.
 Decide if
 Salesperson requires improvement or
 Change objectives or strategies.
 Identify reasons for discrepancies.
 Take corrective action.
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Strategic Planning
 Kotler (1988) defined strategic
planning as the managerial process of
developing and maintaining a viable fit
between the objectives and resources
of an organization.
 Levels of Strategic Planning
 Corporate Level
 Business Level
 Product/Functional Level
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Corporate Level Strategic
Plans
 Corporate Mission.
 Strategic Business Units (SBUs).
 Allocating Resources to SBUs.
 Filling up strategic planning gaps.
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Ansoff’s Product-Market
Expansion Matrix
 Market Penetration Strategy.
 Market Development Strategy.
 Product Development Strategy.
 Diversification Strategy.
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Business Level Strategic
Plans
 Define business mission.
 Analyze external environment.
 Analyze internal environment.
 Developing business objectives and
goals.
 Developing business strategies.
 Preparing programs or action plans.
 Implementing action plans.
 Monitoring feedbacks and taking
corrective action 16

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Porter’s Generic Strategies
 Cost Leadership.
 Differentiation.
 Focus.
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Product/Functional Level
Strategic Plan
 Target Market Selection.
 Marketing Mix Decision.
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Qualities of a Sales Manager
 Clear understanding
 Ability to lead
 Physical strength
 Stamina
 Mental energy
 Passion
 Vigor
 Initiative
 Integrity
 Emotional
Intelligence
 Tact
 Self respect
 Educational and
technical
qualification.
 Interpersonal skills
 Communication
 Team Management
 Assertiveness
 Empathy and
adaptability
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Role of a Sales Manager
 Market analyst
 Decision maker
 Budget maker
 Resource allocator
 Recruiter
 Trainer
 Leader
 Problem solver
 Planner
 Forecaster
 Organizer
 Communicator
 Selector
 Motivator
 Advisor
 Coordinator
 Controller
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