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Sales and
Salesmanship 1
Objective of Sales
Management
 Increasing Sales volume
 Contributing to company profit
 Long term growth of the organization
 Market leadership
2
Scope of Sales
Management
3
Scope of Sales Management
 Sales planning and forecasting
 Managing distribution channels
 Hiring sales personnel
 Branding, labeling and packaging
 Controlling sales force
 Determining structure & size of sales organization
 Human Resource Planning
 After sales service
 Fixing sales quotas
contd….
4
Scope of Sales Management
 Sales budgeting
 Sales promotion
 T&D of sales people
 Developing sales person’s objectives
 Determining sales territories
 Organizing support service
 Remuneration of salespeople
 Motivating sales personnel
5
Importance of Sales Management
6
Objectives of Sales
Department
 Increase the annual sales and profit
 Minimize the cost of production
 Manage sales force in order to achieve sales targets.
 Increase number of customers and retain the customers.
 Manage after sales service
 Manage demand and supply of the product in the market
7
Coordinating functions of
Sales Manager
 Identifying sales goals
 Creating sales plans
 Providing training
 Motivating team
 Supervising
 Recruiting and hiring
 Allotment of sales territories
 Preparing Sales budget
 Communication
8
Functions of sales manager
 Identifying sales goals
 Setting sales goals is one of the main aspects of a
sales manager’s job description.
 Goals should SMART
 Creating sales plans
 It should incorporate different sales techniques and
strategies.
 Assigning quotas to each individual and team,
considering their experience and strength.
9
Contd..
 Providing training
 Sales is fast moving segment of any company and its
important to keep up with the latest techniques by
providing necessary training to the sales team.
 To identify the gaps in knowledge and provide the
relevant sales training.
 Motivating team
 Such as social event, dress down dress are common
 Different incentive plans for the individual and team as
well.
10
Contd..
 Supervising
 Sales manager’s task is to supervise
the actions of sales executives so that
he can rectify any deviations if
possible.
 Recruitment and hiring
 To identify the people he needs on his
sales team in order to hit the targets.
 Shortlist and hire the suitable sales
person with selling skills
11
Contd..
 Allotment of sales territories
 Means that the sales territories refer to the
grouping of the customers over a particular area
 He allots territories to sales representatives so that
there is complete coverage of the market.
 Preparing sales budget
 Compiling selling expenses like transportation,
promotional expenses etc,
 communication
 He maintains communication between sales
executives and top management
12
Sales as a Marketing
Function
 Both are two related business functions within an
organization
 Sales refers to all activities that lead to the selling of
goods and services and marketing is the process of
getting people interested in the goods and services.
 Marketing focuses on the general public or larger
group of people and sales targets on smaller groups of
people or subsets of general public.
13
Sales as a Marketing
Function
 Sales is a term used to describe
the activities that lead to the
selling of goods and services.
 Sales people are responsible for
managing relationship with
potential clients (prospects) and
providing a solution for prospects
that eventually leads to a sale.
14
Sales as a Marketing
Function
 Marketing encompasses all activities
that help spark interest in your business.
 Marketers use market research and
analysis to understand the interest of
potential customers.
 Marketing department is responsible for
running campaigns to attract people to
the businss brand, product or services.
15
Sales Organizational Structures
 Line Structure
 Line and Staff Structure
 Functional Structure
 Committee Structure
16
Line Organisation Structure
(Scalar,Vertical)
 Line organizational structure is one of the simplest types of
organizational structures.
 The chain of command and each department head has control
over their departments.
 A line organisation has only direct, vertical relationships
between different levels in the firm.
 There are only line departments-departments directly involved
in accomplishing the primary goal of the organisation.
 Exp:-small businesses in which the top manager, often the
owner, is positioned at the top of the organizational
structure and has clear "lines" of distinction between him
and his subordinates.
17
Line Organisation Structure
(Scalar,Vertical) 18
Field Sales Organization
 Geographic sales specialization organization
 Product based sales specialization org.
 Customer based spec. org.
 Activity/ function based spec. org.
 Hybrid sales org.
 Team based org.
19
Geographic sales org.
 The geographic sales organization structure allows
company to track the sales performance for specific
geographic locations or divisions.
 Advantage: Proper coverage of territory.
 Disadv: the salesperson is responsible for the entire
product line.
 Examples : a midsized retail chain or fast-food chain
with multiple outlets across the state may organize on
a geographic basis.
20
21
Product based sales org.
 This type specialize their sales force according to the
product line.
 It is generally combined with geographical
specialization at the higher levels.
 Adv: develop deep expertise in a product or service
 Disadv: Higher training cost.
 Examples: bakery division and clothing division,
each of those product-based divisions will have its own
sales department, marketing department,
manufacturing department and other functional groups.
22
23
Customer based sales org
 places a premium on the customer and their
experience with the product, service, or brand
 It enables the sales person to become more
knowledgeable about the unique problems and needs
of each group of customers.
 This implies marketing concept with emphasis of
customer satisfaction.
 Adv: give maximum attention to the good customers’
 Disadvg:: cost is very high service account
 Exp: Starbucks, Amazon, Netflix,
24
25
Activity/ function based org.
 structure where decision-making and operations run
through functional departments with precise areas of
specialization.
 These departments serve as functional units and are
overseen by functional managers or department
heads.
 In each department, team members report up the
chain of command to department heads, who in turn
report to the company's top management, apprising
them on the status of their functional areas.
26
 Adv: Stable work environment:
 Built for organizational efficiency
 Competition between departments
 Disadv. : There may be a lack of understanding as
to how significant that specific are to the company
 Communication can be rigid.
 Exp: sales department, production department, HR
department, IT department, marketing department,
legal department, R&D dep.

27
28
Hybrid Sales Organization
 It is formed when two or more organizational types are
combined.
 This types helps to overcome the problems of
individual sales org.
 Advantage: ability to offer the best service
 Disadvantage: difficulty of managing multiple
salesforce.
 Exp: Starbucks is an example of a hybrid
organizational structure. Starbucks implements a
mix of three organizational structures: functional
structure, geographical structure and product-based
structure. Starbucks has functional departments such
as finance, marketing and human resources
29
Hybrid Sales Org. 30
Theories of selling
 4 Theories of Personal Selling –
AIDAS theory of personal selling.
“ Right Set of Circumstances” theory
of selling.
“ Buying Formula” theory of selling.
“ Behavioral Equation” theory.
31

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Salesmanship.pptx

  • 2. Objective of Sales Management  Increasing Sales volume  Contributing to company profit  Long term growth of the organization  Market leadership 2
  • 4. Scope of Sales Management  Sales planning and forecasting  Managing distribution channels  Hiring sales personnel  Branding, labeling and packaging  Controlling sales force  Determining structure & size of sales organization  Human Resource Planning  After sales service  Fixing sales quotas contd…. 4
  • 5. Scope of Sales Management  Sales budgeting  Sales promotion  T&D of sales people  Developing sales person’s objectives  Determining sales territories  Organizing support service  Remuneration of salespeople  Motivating sales personnel 5
  • 6. Importance of Sales Management 6
  • 7. Objectives of Sales Department  Increase the annual sales and profit  Minimize the cost of production  Manage sales force in order to achieve sales targets.  Increase number of customers and retain the customers.  Manage after sales service  Manage demand and supply of the product in the market 7
  • 8. Coordinating functions of Sales Manager  Identifying sales goals  Creating sales plans  Providing training  Motivating team  Supervising  Recruiting and hiring  Allotment of sales territories  Preparing Sales budget  Communication 8
  • 9. Functions of sales manager  Identifying sales goals  Setting sales goals is one of the main aspects of a sales manager’s job description.  Goals should SMART  Creating sales plans  It should incorporate different sales techniques and strategies.  Assigning quotas to each individual and team, considering their experience and strength. 9
  • 10. Contd..  Providing training  Sales is fast moving segment of any company and its important to keep up with the latest techniques by providing necessary training to the sales team.  To identify the gaps in knowledge and provide the relevant sales training.  Motivating team  Such as social event, dress down dress are common  Different incentive plans for the individual and team as well. 10
  • 11. Contd..  Supervising  Sales manager’s task is to supervise the actions of sales executives so that he can rectify any deviations if possible.  Recruitment and hiring  To identify the people he needs on his sales team in order to hit the targets.  Shortlist and hire the suitable sales person with selling skills 11
  • 12. Contd..  Allotment of sales territories  Means that the sales territories refer to the grouping of the customers over a particular area  He allots territories to sales representatives so that there is complete coverage of the market.  Preparing sales budget  Compiling selling expenses like transportation, promotional expenses etc,  communication  He maintains communication between sales executives and top management 12
  • 13. Sales as a Marketing Function  Both are two related business functions within an organization  Sales refers to all activities that lead to the selling of goods and services and marketing is the process of getting people interested in the goods and services.  Marketing focuses on the general public or larger group of people and sales targets on smaller groups of people or subsets of general public. 13
  • 14. Sales as a Marketing Function  Sales is a term used to describe the activities that lead to the selling of goods and services.  Sales people are responsible for managing relationship with potential clients (prospects) and providing a solution for prospects that eventually leads to a sale. 14
  • 15. Sales as a Marketing Function  Marketing encompasses all activities that help spark interest in your business.  Marketers use market research and analysis to understand the interest of potential customers.  Marketing department is responsible for running campaigns to attract people to the businss brand, product or services. 15
  • 16. Sales Organizational Structures  Line Structure  Line and Staff Structure  Functional Structure  Committee Structure 16
  • 17. Line Organisation Structure (Scalar,Vertical)  Line organizational structure is one of the simplest types of organizational structures.  The chain of command and each department head has control over their departments.  A line organisation has only direct, vertical relationships between different levels in the firm.  There are only line departments-departments directly involved in accomplishing the primary goal of the organisation.  Exp:-small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates. 17
  • 19. Field Sales Organization  Geographic sales specialization organization  Product based sales specialization org.  Customer based spec. org.  Activity/ function based spec. org.  Hybrid sales org.  Team based org. 19
  • 20. Geographic sales org.  The geographic sales organization structure allows company to track the sales performance for specific geographic locations or divisions.  Advantage: Proper coverage of territory.  Disadv: the salesperson is responsible for the entire product line.  Examples : a midsized retail chain or fast-food chain with multiple outlets across the state may organize on a geographic basis. 20
  • 21. 21
  • 22. Product based sales org.  This type specialize their sales force according to the product line.  It is generally combined with geographical specialization at the higher levels.  Adv: develop deep expertise in a product or service  Disadv: Higher training cost.  Examples: bakery division and clothing division, each of those product-based divisions will have its own sales department, marketing department, manufacturing department and other functional groups. 22
  • 23. 23
  • 24. Customer based sales org  places a premium on the customer and their experience with the product, service, or brand  It enables the sales person to become more knowledgeable about the unique problems and needs of each group of customers.  This implies marketing concept with emphasis of customer satisfaction.  Adv: give maximum attention to the good customers’  Disadvg:: cost is very high service account  Exp: Starbucks, Amazon, Netflix, 24
  • 25. 25
  • 26. Activity/ function based org.  structure where decision-making and operations run through functional departments with precise areas of specialization.  These departments serve as functional units and are overseen by functional managers or department heads.  In each department, team members report up the chain of command to department heads, who in turn report to the company's top management, apprising them on the status of their functional areas. 26
  • 27.  Adv: Stable work environment:  Built for organizational efficiency  Competition between departments  Disadv. : There may be a lack of understanding as to how significant that specific are to the company  Communication can be rigid.  Exp: sales department, production department, HR department, IT department, marketing department, legal department, R&D dep.  27
  • 28. 28
  • 29. Hybrid Sales Organization  It is formed when two or more organizational types are combined.  This types helps to overcome the problems of individual sales org.  Advantage: ability to offer the best service  Disadvantage: difficulty of managing multiple salesforce.  Exp: Starbucks is an example of a hybrid organizational structure. Starbucks implements a mix of three organizational structures: functional structure, geographical structure and product-based structure. Starbucks has functional departments such as finance, marketing and human resources 29
  • 31. Theories of selling  4 Theories of Personal Selling – AIDAS theory of personal selling. “ Right Set of Circumstances” theory of selling. “ Buying Formula” theory of selling. “ Behavioral Equation” theory. 31