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