Introduction to Sales Management

What is Sales
Management?
 One definition: “The management of the
personal selling part of a company’s marketing
function.”
 Another definition: “The process of planning,
directing, and controlling of personal selling,
including recruiting, selecting, equipping,
assigning, supervising, paying, and motivating
the personal sales force.
Difference between sales and marketing

Starting
Focus Means Ends
point
Selling and Profits though
Factory Factory promoting sales volume

Selling concept

Market Customer Coordinated Profits through

needs marketing customer satisfaction

Market concept
 Personal selling strategies

1. Willingness to go to bat for the buyer within the

supplier firm
2. Thoroughness and follow through
3. Knowledge of the sales person’s product line
4. Market knowledge and keeping the buyer posted
5. Applying his product and services to buyer’s needs
6. Knowledge of the buyer’s product line
7. Preparation for sales calls
8. Regularity of Sales calls
9. Diplomacy in dealing with operating departments
10. Technical education
 Evolution of personal selling

Partnership Strategies

Business
Consultative Management
Negotiation Selling
Persuasion
 Marketing concepts

1) Production concept
2) Product concept
3) Selling concept
4) Marketing concept
5) Societal concept
 Nature and role of sales management

 The determination of sales force objective and goals

 Sales force organization, size, territory, and quota
finalization
 Sales forecasting and budgeting
 Sales force selection, recruitment, and training
 Motivating and leading the sales force
 Designing compensation plan and control systems
 Designing career growth plans and building
relationship strategies with key customers
 Transactional Relationship / Selling:- one type of
relationship marketing in which salespeople make one-
time sales to price-oriented customers ,who are not
contacted again
 Value – added Relationship / Selling:- understanding
current and future needs of customers and meeting
those needs better than competitors with value – added
solution to their problems
 Collaborative relationship :- a type of relationship
marketing in which a selling organization works
continuously with its large customers to improve the
customer performance in terms of operations , sales
and profit
 Types of personal selling

• Industrial selling
• Retail selling
• Services selling
 Types of selling

• Order taker sales people

• Order creators
• Order getters
 Types of Selling
Inside Order Taker

Order
Takers Delivery Sales
People

Outside Order
Takers
Selling Order Missionary Sales
Function Creators People
New Business
Sales People

Front Line Organizational

Sales People Sales People

Order Getters Consumer

Sales People

Sales Technical Support

Support sales People
Sales
people Merchandisers
  Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.

• Order taker (Response selling)
• Inside order taker • Behind counter in a garment
shop
• Telemarketing salesperson takes • Pharma products’ orders from
orders over telephone nursing homes
• Outside order taker. Also • Food, clothing products’ orders
performs other tasks from retailers

• Sales support • Provide information, build • Medical reps. in pharma industry

• Missionary selling goodwill, introduce new products
• Technical selling • Technical information, assistance • Steel, Chemical industries

• Order-getter (Creative, Problem- • Getting orders from existing and • Automobiles, refrigerators,
solving, Consultative selling) new household consumers insurance policies
• Getting orders from business • Software and business solutions
customers, by solving their
business and technology problems
 Roles and Skills of a Modern Sales
Manager
Some of the important roles of the modern sales
manager are:
 A member of the strategic management team
 A member of the corporate team to achieve
objectives
 A team leader, working with salespeople
 Managing multiple sales / marketing channels
 Using latest technologies (like CRM) to build
superior buyer-seller relationships
 Continually updating information on changes in
marketing environment
 Sales management process

Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

The External Environment
Potential Customers
Competition
Legal &Political Environment
Technological Environment
The Environment
Marketing Strategy
Product & Product Lines
Pricing Policy
Distribution Policy
Advertising and Sales Promotion
The Internal Environment
Objectives & Mission
Human Resources
Financial Resources
Capacity utilization and Production
Process
Innovation Cycles

Account
Sales Organization Sales Organization
Management

Sales Organization

Sales Management Functions

 Determinants of
Sales Performance

Sales Person’s View

Supervision of job requirements, Performance
role perceptions
Selection&
Sales
Recruitment of
sales force Training

Motivating the sales

Motivation force
compensation system
Level Reward System

Skills Aptitude

Quota Allocation
Profitability of
Sales
Customer Performance
 Emerging trends in sales management

Technology

Emerging trends
Customer orientation in sales
Relationship selling
management
Technology

Global and ethical Diversity

Issues

New selling methods

Types of Sales Managers / Levels
of Sales Management Positions

Top-Level Sales Managers /

Leaders

Middle-Level Sales Managers

First / Lower Level Sales Managers

Emerging Trends in Sales Management

Emerging
Trends in Sales
Management
 Emerging
Trends in
Sales
Management
 Assume a maker of outdoor lighting serves 1,000
municipalities (Segment 1) and 5,000 individuals
homeowners (Segment 2) . The number of actual
work days for every salesperson in the firm is 225
.But municipal buying processes are more
complex and involve more people than customer
decisions, and the travel time to widely dispersed
city buildings is sustainable . So Segment 1,10
annual calls are required per customer , and call
averages 4 hours. In Segment 2,4 annual calls are
required per customer , and each call averages 1
hours. Estimate the number of salespeople this
firm might need.
 Introduction to Caselet
 Problem Identification
 Methodology
 Summary