sales management concepts

7/24/2019 Sales Management concepts

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Sales & Distribution Management

Compiled BySaud Hussain

Module - 1


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Module-I: Definition, objectives, Functions and classification of Sales Management Selling under the Marketing concept,

Interdependence of Salesmanship and Advertising

!he Sales "rgani#ation:

$urpose, principles and policies of sales organi#ation,

Setting up of the sales organi#ation,

!%pical sales organi#ation structure,

$lanning of the selling factors


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Definition, objectives, Functions andclassification of Sales Management:

Definition:Sales management is a sub-system ofmarketing management, wi! translates temarketing plan into marketing performan!e"

Sales management as defined by te #meri!anmarketing asso!iation, $e planning ,dire!tionand !ontrol of personal selling in!luding re!ruiting,sele!ting, e%uipping, assigning , routing,

superising, paying and motiating te sales for!e"


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Definition, objectives, Functionsand classification of Sales

Management: 't is important to differentiate sales management

from personal selling and salesmansip" Sales management dire!ts te personal selling

efforts, wi! in turn is implemented largelytroug salesmansip" (ersonal selling is a broader!on!ept tan salesmansip"


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)mployment in sales is growing

Sales positions offer adantages*+ ood !ompensation+ 'ntrinsi! reward from elping !ustomers

+ le.ible in day-to-day a!tiities

+ Hig-isibility !areer tra!k

+ /imited superision+ $rael opportunities

+ 'n!reasing responsibilities

0y !oose te sales profession


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"bjectives of sales management:rom !ompany iewpoint tere are treegeneral ob2e!ties of sales management" $ese

are

as follows* )nan!ement of sales olume" Contribution to profit

Continuous growt"


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"bjectives of sales management: Sales e.e!uties proide estimates on market and sales

potential" $o guide and lead te sales personnel and middlemen" $o deelop strategy for future operations"

$o proide information to te iger management formaking marketing de!isions and for setting sales andprofit goals"

Co$o !reate and maintain relationsip wit te !annelmembers"

$o negotiate wit te !ustomers"

$o proide smart seri!e and deelop te goodwill forte firm" $o proide solutions to te problems


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Functions of sales management: $e determination of sales for!e ob2e!tie and

goals Sales for!e organi3ation, si3e, territory, and

%uota finali3ation Sales fore!asting and budgeting Sales for!e sele!tion, re!ruitment, and training Motiating and leading te sales for!e Designing !ompensation plan and !ontrol systems

Designing !areer growt plans and buildingrelationsip strategies wit key !ustomers


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Selling under the Marketing

concept:Sl. No. MARKETING SELLING

1 Emphasis is on customersneeds and wants. Emphasis is on the product, and the needs andinterests o the seller.

! Satisaction o the customer is primar". Sales are the primar" moti#e.

$ %lannin& is lon&'term oriented. %lannin& is short'term oriented.

( E)ternal, mar*et se&mentation. Internal, compan" orientation.

+ onsumer determines the price and pricedetermines the costs.

ost determines the price.

- It is an acti#it" that con#erts the consumerneeds into products.

It is an acti#it" that con#erts the &oods into cash.

Mar*etin& o#erall a whole process. Sellin& is a part o mar*etin& process.

/ Emphasi0es on inno#ation in e#er" sphereon pro#idin& 2etter #alue to the customer 2"adoptin& the most inno#ati#e technolo&".

Emphasi0in& on sta"in& with the e)istin&technolo&" and reducin& the cost o production.


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Selling under theMarketing concept:

Selling &oncept:

Starting

Point EndsFocus Means

Factory Factory Selling

& Promoting

Profit through

Sales Volume

Market Customer

Needs

Coordinated

Marketing

Profits through

Customer Satisfaction

Marketing Concept:


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Interdependence ship bet'een

salesmanship and advertising: Salesmansip is an art of su!!essfully persuading prospe!ts or

!ustomers to buy a produ!t or seri!es from wi! tey !an deriesuitable benefits"

(ersonal selling effort is a two way !ommuni!ation pro!ess" 't !an be easily measurable

#dertising is any form of non-personal form of!ommuni!ation between te buyer and seller by anidentified sponsor"Advertising is a one 'a% communication In advertising customer does not come in direct

contact 'ith an% representative of the organi#ation

So the reaction, attitude or perception of thevie'ers cannot be immediatel% gauged in advertising


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Interdependence ship bet'een

salesmanship and advertising:

%ageof

Promotion

al

effort

Simple/ Inexpensive

goods

Complex/Expensive

goods

Personal selling

Advertising


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Setting of a Sales "rgani#ation: Define the "bjectives:

+ Sales, $rofits ( )ro'th

Determination of activities and their volume of

performance:+ *olume of performance+ Duties and +esponsibilities

)rouping activities into the position:

+ Allocation of ob, "bjectives, duties ( responsibilities andperformance measures+ It has implication on organi#ation design


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Setting of a Sales "rgani#ation:

Assignment of personnel to positions:+ !o assign personnel to positions+ !his is the fitment stud%+ It is a ver% controversial debate 'hether the uniue talents and

abilities those are prudent and profitable 'ill be having the samepositions or the positions need to be modified

$rovision for co-ordination and control:+ &o-ordination and control is obtainable through both informal and

formal means+ Strong leaders control and co-ordinate the efforts of their

subordinates largel% on an informal basis through their personalit%+ !hese leaders make minimal use of formal instruments of controland co-ordination

+ .ritten job description 'here the reporting relationship, jobobjectives, duties and responsibilities, performance measurementsetc are clearl% mentioned


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Sales "rgani#ation Structure:$ere are basi!ally four types of salesorgani3ations from te standpoint of

position and relationsip" $ese are as follows* /ine organi#ation

/ine and staff organi#ation

Functional organi#ation &ommittee organi#ation


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/ine 4rgani3ation 't is te oldest and te simplest form of sales

organi3ational stru!ture" 't is widely used in smaller firms wit small

number of selling personnel" Companies tat !oer limited geograpi! lo!ation

or sell narrow produ!t line"

$ere is no !ross !ommuni!ation between personsat te same leel"

$is is purely indire!t and effe!ted troug tene.t iger leel"

$e greatest weakness of tis stru!ture is tee.!essie dependen!y on te department eadand terefore inappropriate for te growing!on!erns aing large sales staffs"


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/ine 4rgani3ationen" Manager

Sales manager

#sst" S" MgrDi- 1

#sst" S" MgrDi-5

#sst" S" MgrDi-6

Sales people Sales people Sales people Sales people

#sst" S" MgrDi-6


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/ine and staff organi3ation*

(resident

7"(- Marketing

#dertising Mgr en" Sales Mgr Mgr- Marketing8esear!

Di!" Sales$raining

Di!" Sales(ersonnel

#sst" en"Sales Mgr

Mgr- Sales(romotion

Di!" Dealer&Distributor8elations

Distri!t Sales Mgrs

9:;

Bran! Sales Mgrs 965;

Sales (ersonnel 9;


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Functional Sales "rgani#ation: ew sales departments use fun!tional organi3ation " $is stru!ture as been deeloped as te brain!ild of rederi! 0

$aylor wi! is based upon te prin!iple of spe!iali3ation" $e outstanding adantage of te fun!tional sales department is

improed performan!e" Spe!iali3ed a!tiities are assigned to te e.perts wose guidan!e

sould elp in in!reasing te effe!tieness of te sales for!e" $e sales operations are igly !entrali3ed and terefore be!omes

ineffe!tie for many large firms" 't is not finan!ially possible to adopt ig degree of diision of

labor" 't is suitable for large !ompanies wit stable operation , but te

large !ompanies wit stable selling operations is an e.!eption


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Functional Sales "rgani#ation:Dire!tor of Sales#dministration

Mgr-

'nstallation &seri!e

Mgr- Sales

$raining

Mgr- Sales

(romotion

Mgr- Dealer &

Distributor8elation

Salesperson Salesperson Salesperson Salesperson


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&ommittee sales organi#ation:$e marketing organi3ation !an be organi3ed onany of te following basis*

Function-oriented Sales "rgani#ation

$roduct-oriented Sales "rgani#ation &ustomer-oriented Sales "rgani#ation

)eograph%-oriented Sales "rgani#ation

&ombined-based Sales "rgani#ation


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a" Function-oriented Sales "rgani#ation

0en departmentation of sales organi3ation is done on tebasis of sales a!tiities, it is !alled departmentation onfun!tion basis"


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a" Function-oriented Sales "rgani#ation

MARKETING MANAGER

Advertising Deptt.

Sales Supervisor

Sales PromotionDeptt MarketingResearch Deptt. SalesPlanning

Deptt.

Sales Manager

Salesman

Sales Supervisor

Salesman


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b" $roduction "riented Sales"rgani#ation:

GENERAL MANAGER MARKETING

Marketing OfficerProduct - 1

Marketing Officer Product -2

Marketing OfficerProduct - 3

Sales Supervisor

Salesmen

Sales Supervisor

SalesmenSalesmen

Sales Supervisor


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!" &ustomer-oriented Marketing"rgani#ation:

0en te departmentation sales organi3ation is done on!ustomer basis, it is !alled !ustomer oriented Marketing4rgani3ation" 0e may also !all it as departmentali3ation onte basis of distribution !annels"


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!" &ustomer-oriented Marketing"rgani#ation:

MANAGER MARKETING

Sales OfficerDirect Marketing

Sales OfficerConsumer Products

Sales OfficerForeignCustomers

Sales OfficerChannel Mktg.

Sales OfficerIndustrialProducts

Salesmen Salesmen Salesmen SalesmenSalesmen


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d" )eograph%0!erritor% "rientedMarketing "rgani#ation:

Here for te selling of a parti!ular produ!t types, te total

marketing area is diided into territories" )a! territory is under te !ontrol of a separate sales

e.e!utie" He is assisted by a separate sales for!e"


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d" )eograph%0!erritor% "rientedMarketing "rgani#ation:

COUNTRY MARKETING MANAGER

8egional SalesManager ?48$H

Sales Superisor

8egional SalesManager)#S$

8egional SalesManager0)S$

8egional SalesManager S4@$H

Sales Superisor Sales Superisor Sales Superisor

Sales manSales man Sales manSales man


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e" &ombined-base Marketing"rgani#ation:

$e !ombination of two more basis of departmentation su! asterritorial, produ!t and !ustomersbasis et!" is !alled !ombined basis

of departmentation of sales organi3ation"


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$lanning of the selling factors:

).amine !ustomers in ea! market" Determine te types of sales 2obs needed to sere a

market" ?ote te 2ob a!tiities salespeople must do"

Design sales 2obs around !ustomers" Set up te sales for!e organi3ational stru!ture, wi!

in!ludes te arious sales 2obs and geograpi!territories"

(rodu!t and seri!e related fa!tors

4rgani3ation related fa!tors Marketing mi. related fa!tors


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$lanning of the selling factors:

12ternal factors: $e speed of market !ange 8edu!tion in te number of endors per buyer Closer to !ustomer relationsips Canges in regulations and international pra!ti!es

"ther Factors like:+ $e produ!t+ $e !ustomers+ $erritory+ $e!ni%ues of selling+ (romotional materials+ HisAHer own organi3ation+ $argets


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Stages in the selling process:

$re-salepreparation

Sales$resentation

3andling&ustomer"bjections&losing the SaleFollo' up action

Approach to thecustomer

$re- approachbefore theintervie'$rospecting


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Desirable Salesperson $raits

SalespersonSalesperson

mpathetic

Competiti!e

"oal#oriented

$dapti!e

Customer#

oriented

nthusiastic

%rganied

Self#moti!ated

sales management concepts

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