NATURE & SCOPE OF

SALES MANAGEMENT
Sessions 1 - 2
BOOKS AND REFERENCES:

 Sales and Distribution Management – Tapan Panda, & Sunil

Sahdev (Oxford), TPSS – Text book
 Sales & Distribution Management –Dr Matin Khan,
Excel Books (Rs.200/-)
 Marketing Channels – Coughlan, Anderson, Stern, El-Ansary
7th . Edition, Pearson
 Marketing Channels ( A Management View) - Bert
Rosenbloom, The Drydon Press
 ABC's of Selling - Charles Futrell
 Sales Management: Decisions Strategies and Cases - Still,
Richard R
 Gupta, S.L. Sales and Distribution Management
 Rampal, M.K., Gupta, S.L. Cases and Simulations in Marketing
Management
Nature and scope of Sales
Management
•The importance of sales
management
•Responsibilities of a sales manager
•Selling and Marketing– the
difference
Organization for Sales &
Marketing
•Nature of sales organization
•Understanding different types of sales
& marketing organization structures
FOR SUCCESS IN ALL
AREAS OF LIFE
ATTITUDE IS MUCH
MORE IMPORTANT
THAN APTITUDE
GIVE ME SOME ATTITUDE
1. There are a lot of different elements to a
successful sale, but amongst the most
important is attitude
2. The way you present yourself, your posture,
your clothing, your tone, even the way you
look at a customer- gives off subtle signals
3. If you act like a loser – slumped over, not
looking at prospect straight in the eyes- you
come across negativity and people react to
you negatively
4. Conversely, if you come out with a can do
attitude and confidence, prospect will react
positively towards you
 CREATING ATTITUDE- I
1. You can’t tell yourself you want to be confident
and –boom – you are. It doesn’t work that way
2. The right attitude is not just mental, it’s physical
too
3. If you are not well dressed it will reflect upon you
in the same manner as the lack of confidence.
Given a choice, people want to deal with someone
who projects a positive vibe
4. This is your livelihood. Invest in it. Get yourself a
couple of really good suits, expensive shirts, and
silk ties. Your customers will notice- and so will you
. You will feel better about yourself when you look
in the mirror
 CREATING ATTITUDE- II
1. Get back to your fighting weight. You can look in the
mirror and tell yourself the problem is in your jeans.
But if you can’t fit into your jeans, it doesn’t make a
difference why. If you are overweight you come across
as a person who lacks self control and can’t be trusted
2. Reading will improve your communication skills. It will
make you a better writer and a better speaker. These
benefits come no matter what you read- even
mysteries or science fictions
3. However, reading news papers and news magazines
has an added benefit; they make you a better
conversationalist. You will be better informed about
what’s going along in the world.
SOME FAMOUS QUOTES OF
EARL NIGHTINGALE

1.People with goals succeed because

they know where they are
going…… It’s as simple as that
2.You become what you think about
3.What’s going on inside shows on
the outside
 START WITH A QUERY

Is marketing & selling

synonymous?
The task of a sales
manager is to increase
sales, the task that
confronts a marketing
manager is to increase
Marketing begins with consumer need identification.
Sales on the other hand begins with the product in hand.
The heart of any marketing activity is the exchange
process, completed and facilitated by the sales function
Marketing is defined as the conception, production,
promotion and distribution of goods & services to the end
user
Thus at a profit. aims at satisfying the need of the
marketing
consumer at one end and generate profits at the other end
for the manufacturer and other intermediaries associated
in the process.
Marketing and sales are inseparable functions. Both are
complimentary to each other. Marketing as well as sales
cannot exist
The sales in vacuum.
function also acts as a market feedback for
marketing personnel. The actual test of a product in terms
of quality, attributes, expectations, price worthiness and
so on result only when it is sold to the consumer.
Therefore consumer feedback is considered a very vital
ingredient in formulating
A product increases marketing
in sales policies.
only when it is marketed well.
Thus it is very apt to conclude that the task of a sales
manager is to increase sales and that of a of marketing
manager is to increase profits. For this it is important that
WHEN WE ARE MARKETING,
WE ARE:
1. Deciding what products we are going to sell
2. Determining the prices at which we are
going to sell
3. Deciding whom we are going to sell
4. Estimating the likely result of the profit
 DIFFERENCE BETWEEN
SELLING & MARKETING
ORIENTED COMPANIES
SELLING MARKETING
Emphasis on product Emphasis on consumer needs and
wants
Company manufactures the Company first determines customer
product first and then decides to needs and wants and then decides
sell it how to deliver a product to satisfy
these wants
Management is sales volume Management is profit oriented
oriented
Planning is short-term oriented Planning is long-term oriented in
in terms of today’s products and terms of new products, tomorrow’s
markets products and future products
Stresses needs of a seller Stresses needs and wants of a buyer
Views business as a goods Views business as a consumer
producing process satisfying process
Emphasis on staying with Emphasis on innovation in every
existing technology and sphere, on providing better value toTPSS
 DIFFERENCE BETWEEN
SELLING & MARKETING
SELLING MARKETING

Different departments work as All departments of a business operate

highly separate watertight in an integrated manner, the sole
compartments purpose being generation of
consumer satisfaction

Cost determines price Consumers determine price, price

determines cost

Selling views customers as the Marketing views the customers as the

last link in business very beginning of a business

TPSS
Session- 2
 THE SELLING CONCEPT

Starting Focus Means Ends

point

Factory Factory Selling Profits

& promoting through
sales
volume

THE MARKETING
CONCEPT

Profits
Customer Coordinated
Market through
needs marketing
customer
satisfaction

TPSS
 NEW TRENDS AFFECTING
PERSONAL SELLING
1. Buyers are more aware and demanding
2. Customer expectations are rising
3. Revolutionary advances in telecommunications and
computer technology are happening all the time
4. Sales force for consumer product is shrinking
5. Women are flooding the sales profession
6. Domestic markets are undergoing micro-
segmentation
7. Foreign competition is intensifying
8. Markets are being international

A wise sales person will keep these trends in mind while going
about his work
 SALES JUST DON’T
HAPPEN
1. 80% of all sales are made after
the fifth call
2. 48% of all sales persons call
once, and quit
3. 35% call twice, and quit
4. 10% keep on calling
These 10% make 80% of the
sales
 SUCCESS CAN CAUSE
Philip Kotler- ManyFAILURE
times as corporations grow larger,
they begin to forget the very lessons which have made
them a success
1.Increase in the no. of levels in the hierarchy makes it
difficult to make ultimate consumer’s voice heard
2.When it does get heard, communication gets distorted
3.Only information that is liked by top management is fed
4.Salesman becomes overconfident because product is
popular and sells. They make fewer calls, travel less. They
think about their own convenience and not that of the
customer
5.Salesmen begin to take customer for granted. Develops a
‘take it or leave it’ attitude
6.Sales man and company twists customer’s arms tying up
slow moving product with fast moving ones
7.Sales man becomes insensitive and unobservant about
competition. End us as ‘tortoise and hare’
8.Salesman rely on improvising rather than on system
planning- again a sign of over-confidence
 WHO IS A
PROFESSIONAL?
1. Must have the will to learn and keep on
learning throughout his professional career
2. Must serve a period of internship, to learn
the ropes and the details from someone
senior and more experienced
3. Must specialize because even in selling
there is need to have expertise in specific
product or services
4. Must take time to fraternize, to meet
others in the same profession
5. Must have the desire to contribute- to the
community, to the society . Selling is just
not a selfish job.
DISTINGUISHING FEATURES OF
MARKETING- BASED
COMPANIES
1. Use market share, rather than volume as measure of
marketing success
2. Analyse and use market segmentation principals
3. Research the process of monitoring customer needs,
usage, trends as well as competitive activity
4. Evolve a structure or process of coordinating all non-
marketing functions
5. Have a set of specific marketing goals and targets
6. Follow a corporate style and culture where marketing
plays a key role
7. Follow a market-based business concept that provide
unique value to the customer
8. Sales managers are termed as ‘relationship mangers’
Session- 3
 THE SELLING FUNCTION
Do not directly
receive orders- talk
to specifiers rather
THE SELLING than buyers
Respond to FUNCTION
already Attempt to
committed persuade
customers customers to
place an order
Order- Order- Order-
takers creators getters

Front-line Sales
sales support
people people
Consu
mer
sales
Inside Delive Outsi Mission people Tech
order- ry de ary Merch support
takers sales order- sales New an- sales
Organis isers
people takers people busin people
a-tional
ess sales
sales people DG 5
 Features,
packaging,
quality,
range

Price levels,
credit
terms,
discounts,
price
changes

Advertising,
publicity, sales
Inventory, channels of
promotion,
distribution, no. of
personal selling
intermediaries-
 TIME OF ADOPTION OF
INNOVATORS
Time taken for diffusion process
%age first-time
adopters

Innovator Early Laggards

s majority (16%)
(2.5%) Early (34%)
Late
adopters majority
(13.5%) (34%)

Closely related to PLC concept DG-18

8-24
8-3
 PRODUCT LIFE CYCLE
%age first-time

Maturity
Growth Decline
adopters

Introduct
ion
Sales

Profit

DG-18
8-25
8-3
 THE DEMAND CURVE
Price (Rs)

D
If demand determines
the upper threshold for
price, then costs
determine the lower one

Quantity’
1 2 3 4 000
DG
 A SIMPLE BREAK-EVEN
Sales CHART Sales Revenue
Revenue
Cost
Sales managers must Profits Total Costs
understand different (a+b )
costing concepts

Loss Variable Costs

(b)

Fixed Costs
(a)

Output
Break-even DG
 Area where
substantial
improvements and
cost savings can be
 TO-DAYS PROFESSIONAL
• ‘Thinker’ in additionSALESMAN
to being a ‘doer’
• Begins with a plan- finds out whom to see, where and when and
estimates what he hopes to achieve
For industrial products in a highly competitive environment:
• 30% time is spent on planning
• 70% in implementing
If he does not do this:
• 100% of field work will yield only 30% productivity
• Offer something new always
– Newness in a selling situation lies in the eyes of the salesperson
(feature/ benefit)
– No two prospects are ever the same
• Strike empathy
– Define the customer profile- background, level of education,
temperament, interests etc, weaknesses, needs & wants
– Helps gain trust so that the customer will buy his products
• Target for the heart
– When all brands are about the same, differentiate the product from
those of competitors in ways external to the product
Select territories and customers
•Which areas to cover and within the area who are the potential
customers, how often and in what manner (market mapping)
•Planning the work – working the plan
Classify customers:
•The A-customers will perhaps be the busiest and most difficult to
meet and they have to be met the most and for the longest
period
Identify the influencers, deciders, purchasers and users:
MAN (Money Authority & Need)
•Who can initiate the decision
•Who can influence it
•Who can decide
•Who will be the formal purchaser
•Who will be the user
Most times industrial selling and in large corporations these roles
are performed by different persons
 THE NATURE AND ROLE OF
SALES MANAGEMENT
The basic function and role of selling is to generate sales
and earn revenue for an organization. Today’s approach
includes:
•Maintaining good customer relations
•Managing profitability of a firm
•Managing customer complaints
•Building brand value in the eyes of the customer
Best marketing programs can fail if sales staff is
ineffective or improperly managed.
For customers sales staff represents the face of the
company and impressions determine future business
relations.
Functions of a sales manager are classified into:
1.Personnel selling – Individual or team to establish and
build a profitable relationship over time through multiple
transactions
2.Sales management – Planning, organizing, directing and
controlling all sales activities
 ORGANIZATION FOR
MARKETING
Referred to as:
•Directional
•Managerial
•Functional structure
•Lines of authority & responsibility

Factors for consideration are:

1.Will the need for a decision be recognized and given
adequate consideration by the appropriate members of the
organization?
2.Will there be sufficient time for the decision making
process?
3.Whether the necessary data on existing and alternative
courses of actions are available and utilized?
4.Will the skills, knowledge and potential of the organizational
members be used to maximize their contribution to the
 ORGANISATIONAL IMPLICATIONS
OF ADOPTING THE MARKETING
CONCEPT
Managing Director

Production Sales Marketing Finance H.R

Managem
ent
Field Sales Force Advertising

Market Research
Sales Office
Administratio
n
Publicity
SALES ORIENTED COMPANY DG
 ORGANISATIONAL IMPLICATIONS
OF ADOPTING THE MARKETING
CONCEPT
Managing Director

Production Marketing Finance H.R

Managem
ent
Advertising Sales

Sales promotion Field Sales Force

Publici
ty Sales Office
Administratio
Market Research n

PublicityMARKET-ORIENTED COMPANY DG
 EXAMPLE OF A SALES
ORGANIZATION STRUCTURE
NATIONAL SALES
MANAGER

REGIONAL SALES
MANAGERS

DISTRICT SALES
MANAGER
 DUTIES AND
RESPONSIBILITIES OF A
SALES MANAGER
Determining sales force objectives and goals
•
• Finalizing sales force organization, size, territory, and quota
• Forecasting and budgeting sales
• Selecting, recruiting, and training of the sales force
• Motivating and leading the sales force
• Designing compensation plan and control systems
• Designing career growth plans and building relationship
strategies with key customers
SALES MANAGEMENT
MODEL
DESCRIBING THE PERSONNEL SELLING
FUNCTION

DEFINING THE STRATEGIC ROLE IN

PERSONAL SELLING

DESIGNING THE SALES ORGANISATION

DEVELOPING THE SALES FORCE

DIRECTING THE SALES FORCE

DETERMINING SALES FORCE EFFECTIVENESS &

PERFORMANCE
 PRACTICAL MARKETING
ORGANISATION STRUCTURE
MANAGING DIRECTOR

Product Financi Marketi Human

ion al ng Resource
Director Director Director Director
Marketing Manager General Sales
Manager
•Market Research •Field Sales
•Product Force
Planning •Customer
•Sales Service
forecasting •Product
•Production Service
Scheduling
•Sales Budgeting
•Pricing
•Advertising
 ORGANISATION STRUCTURES
CUSTOMER ORIENTED MANAGING DIRECTOR

Marketing

•Engineering
•Production R &
D
•Design
•Market
Research
•Finance
•Purchasing
•Credit Control
•Advertising
•Sales
promotion
•Physical
Distribution
•Sales
•Customer
 Geographical Structure Sales Director

Regional Sales Manager

Area Sales Manager Area Sales Manager Area Sales Manager

Sales Sales Sales

People People People
oduct Specialization Structure
Sales
Director
Product Sales
Fans Managers
Radiators Water Pumps

Sales People Sales People Sales People

DG
ustomer Based Structure
Sales
Director

Industry Sales
Banking Managers
Manufacturing Retailing

Sales People Sales People Sales People

Geographical Structure:
•Sales person is required to sell full range of company products
•Costs low but such people are relatively weak in interpreting buyer
behaviour
Product Specialization Structure:
•Problem of route duplication (higher travel costs) if products sell
essentially to the same customer
•May cause customer annoyance
Customer-based Structure:
•Often used in industrial selling markets
•Specialization by markets served allows sales people to gain greater
insights into the factors of a particular industry
•More training for increased customer knowledge and increased travel
expenses DG
 LINE VS. STAFF
POSITIONS

National Sales
Manager
Sales Training
Manager
Regional Sales
Managers
Sales Training
Manager
District Sales
Managers
Staff
Position
Salespeople Line
Position
 AN ORGANIZATION STRUCTURE OF A 2-
WHEELER COMPANY
DIRECTOR MARKETING

GM GM GM GM GM
Marketin Sales Service Commerci (Spar
g al es)
Advertisin Credit Branch
g Network Control Manage
Developm Pricing r
Retailing
ent Area Mgr.
Sales
Mgmt. Goods
Market Movemen Comm.
Statistics
Research t Asst.
Branches Service
(12)
Rural Engg.
Marketin Depot
g Incharge
Spare Part
 DISTRIBUTION – ITS ROLE &
IMPORTANCE
• Creating a dealer network
• Preparation of annual Dealer Network
Development (DNM) plan
• Appointment of dealer network
• Categorization of the dealers
• Initial support to new dealers
• Dealer productivity norms
• Termination of dealers
END OF PRESENTATION