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MODULE 1 SALES MANAGEMENT

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8/3/2019 Sales Management Module 1

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MODULE 1

SALES MANAGEMENT

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SALES MANAGEMENT

SALES MANAGEMENT IS THE

 ATTAINMENT OF SALES FORCE GOALS

IN AN EFFECTIVE AND EFFICIENTMANNER THROUGH PLANNING ,

STAFFING,TRAINING, LEADING AND

CONTROLLING ORGANISATIONAL

RESOURSES.

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FIVE FUNCTIONS OF SALES 

MANAGERS

PLANNING: Building a profitable customer 

oriented team.

STAFFING: Hiring the right people to sell andlead.

TRAINING: Educating sales personal to

satisfy customers.

LEADING:Guiding average people to perform

at above average levels.

CONTROLLING: Evaluating the past to guide

the future.

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Evolution of sales management

o Salesman ship is as old as humancivilization

o Right from the bronze age to 21st centuryin the bronze age sales person used tocarry 26 inch long wooden box wherein itcontains swords, hooks, buttons axe, etc.

o Sales persons in past were not held in highesteem but named as cheaters, mercuryand cunning god

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Evolution of sales management

o Meanwhile India was the favorite place for 

the traders and resellers in the medieval

age for spices, gems, jewels.o In US first sales people were Yankee

peddlers who travel across the places to

sell clothing and spices.

o In India these Yankee peddlers called as

Peheriwallahs.

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Evolution of sales management

o These pack peddlers called as cheaters as they

fooled Indian tribal people by selling colored sugar 

as medicine.

o In the 19th century these pack peddlers started

carrying their goods in the horse driven cart from

one place to another.

o  After certain stage they started to stock the highvalue and necessary goods in wagons and taking

them to different village by halting their wagons

unless until stock gets over.

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Evolution of sales management

The trading caste called Baniyas has originfrom this kind of settlers/sellers.

Day by day these people started to travel tonear cities to buy goods at cheaper rate andtrade them in the villages slightly at higher price.

The techniques of modern salesmanagement refined by John HenryPatterson, widely known as father of modernsales management

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Importance of sales management

Why sales management is necessary/Important

Relevance of the sales force as the primary

contact point for the organization

For reducing the sales misconceptions

through advanced learning in the sales

management. A well organized sales person can create +ve

image among customers.

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Importance of sales management

In the recent era personal selling is moreeffective means than advertising, PR,salespromotion especially in B 2 B marketing as

sales relationship plays vital role in businessto business marketing as they can easilycustomize and match the requirements of thecustomer.

Sales management offers valuable trainingand other career opportunity to the up comingprofessionals.

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Personal selling

Personal selling is the commonly used

promotional method wherein company

executive visits the customers andunderstands there needs and match his

offerings and closes the deal.

Example: Insurance advisor take a prior 

appointment and visits personally to

understand your needs and based on your 

income advice the policy.

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Types of personal selling

There are 3 types of personal selling

1. Industrial selling or corporate selling1. a. Selling to resellers

2. b. Selling to business users

3. c.Institutional selling

4. d.Selling to government

2. Retail selling

3. Service selling

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Types of selling

Selling function

Order Takers Order creators Order Getters

Inside order takers

Delivery sales people

Out side order takers

MissionarySales people

Front line sales people

Sales support people

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Order Takers

Order Takers

Seek repeat sales, make certain that customers have

sufficient product quantities where and when they need

it. Do not require extensive sales effort. Arrange displays,restocks them, answer phone calls. Low compensation,

little training required. High turnover of personnel. 2

types:

Inside Order Takers receive orders by mail/phone,

sales person in a retail store.Field Order Takers travel to customers. Use laptop

computers to improve tracking of inventory and

orders etc.

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Order Getters

Order Getters

Sell to new customers and increase sales to

present customers, sometimes called creativeselling.

Generate customer leads, provide information,

persuading customers and closing sales.

Required for high priced, complex and/or newproducts. High pressure, requires expensive,

time consuming training.

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Order Creators

 A missionary sales person, rather than

selling an actual product or service, instead

tries to make a customer feel good about thecompany and products he or she represents.

The pharmaceutical and liquor industries

frequently employ missionary salespeople.

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Emerging trends in sales Management

Emerging trends in sales

management

Customer 

orientation

Global and

ethical issuesNew selling

methods

Diversity

Relationship

selling

Technology

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Elementar y study on sales Organization

Meaning

Sales organization is an organization of  

individuals either working together for themarketing of products and services

manufactured by enterprise or the products

produced by the firm for the purpose of  

reselling.The objective of sales organization is the

performance of various activities necessar y

to promote sales.

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Elementar y study on sales Organization

In other words sales organizations are

structural entities, which execute a combined

sales plan and are designed to carry outmutually agreed business goals with clear 

structure, roles and responsibility for each

person and group and department.

 A sales organization is built within a largecorporate organization to achieve corporate

and departmental goals

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FUNCTIONS OF SALES 

ORGANIZATION

1.PLANNING FUNCTION SALES FORCASTING

SALES BUDGETING

SELLING POILICY

2. ADMINISTRATIVE FUNCTION SELECTING,TRAINING,CONTROLING

&REMUNERATING SALES MEN

3. EXECUTIVE FUNCTION SALES PROMOTION

SELLING ROUTINE ± EXECUTION OF ORDERS

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DEPARTMENT OF SALES 

ORGANIZATION

SALES DEPARTMENT

 ADVERTISING DEPARTMENT

SALES PROMOTION DEPARTMENT CREDIT AND COLLECTION DEPARTMENT

PERSONNEL DEPARTMENT

MARKET RESEARCH DEPARTMENT PUBLIC RELATIONS DEPARARTMENT

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Factors influencing structure

of the sales organization

1. Product and service related factors

2. Organization related factors

3. Marketing mix related factors

4. External factors

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Sales organization principals

1. Span of control

1. Centralization and decentralization

2. Integration and coordination

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Types of sales organization

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Types of sales organization

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Types of sales organization

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Types of sales organization

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Duties and responsibilities of 

sales manager 

Sales manager holds the most important

position in the sales organization. He plans,

organizes, directs, staffs and coordinates all

the sales activities of an organization.

Because of the crucial significance of the

sales function, sales manager occupies the

key position in the management hierarchy of the sales organization.

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Duties and responsibility of 

sales Manager 

1. Planning the sales.

2.  Advising the management

3. Selection and appointment4. Coordinating and directing

5. Training and development

6.  Allocation of sales territory and sales quota7. Compensating the sales personnel

8. Maintaining the sales office

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Duties and responsibility of 

sales Manager 

9. Controlling the sales activities

10. Studying the market condition

11. Managing the sales promotion andadvertising

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Qualities of sales Manager 

1.Physical Qualities

Sound health

 Agile and hardworking2.Psychological qualities

Leadership qualities

Personal magnetismForcefulness

Tact

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Qualities of sales Manager 

3 Character quality

Honesty and integrity

HumanitySelf discipline

4. Intellectual quality 

Mental capacitySound judgment

Receptiveness

 Ability to teach