Introduction to Sales

Management

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 Marketing concepts

1) Production concept
2) Product concept
3) Selling concept
4) Marketing concept
5) Societal concept

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Societal marketing concept

Production Sales Customers

(Sales Orientation)

Customer Production Sales

Needs

Emphasis on
(Marketing Orientation) Seller’s Needs

Emphasis on
Customer
Needs

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 MARKET ANTICIPATION

Marketing mix
•Product
Producer
•Price Consumer
Marketer
•Place
•Promotion

Exchange offer of value

Marketing management process

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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

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 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
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Evolution of personal selling
Partnership
Business Strategies
Consultative Management
Negotiation Selling
Persuasion

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 Types of personal selling

• Industrial selling
• Retail selling
• Services selling

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 Types of selling

• Order taker sales people

• Order creators
• Order getters

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 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

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Sales management process

Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

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 Personal Selling
Requirements
• Willingness to go to bat for the buyer within the
supplier firm
• Thoroughness and follow through
• Knowledge of the sales person’s product line
• Market knowledge and keeping the buyer posted
• Applying his product and services to buyer’s needs
• Knowledge of the buyer’s product line
• Preparation for sales calls
• Regularity of Sales calls
• Diplomacy in dealing with operating departments
• Technical education
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 Distribution channel
management - an introduction

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 Role of distribution channels
• To adjust the discrepancy of assortment through the process
of sorting, accumulation, allocation, and assorting
• To minimize the distribution costs through routinising and
standardizing transactions to make exchange more efficient
and effective
• To facilitate the searching process of both buyers and sellers
by structuring the information essential to both the parties
• To provide a place for both parties to meet each other and
reducing uncertainty

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 How do distribution channels
contribute
• Intermediaries can improve the efficiency of the exchange
process

• Channel intermediaries adjust the discrepancy of assortment

through the performance of the sorting process

• Marketing intermediaries hang together in channel

arrangements to provide for the routinisation of transactions

• Channels facilitate the searching process

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 Discrepancies in the process of
exchange
 Spatial discrepancy

 Need to break the bulk

 Need to provide assortment

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The cost and control aspects of
intermediation

Cost
efficiency

Control

Direct Distribution Indirect distribution

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 Distribution channel strategy
• Setting distribution objectives in terms of the
customer requirements
• Finalizing the set of activities that are required to
be performed to achieve the channel objectives
• Organizing the activities so that the responsibility of
performing the activities is shared among the
entities who are meant to perform these activities
• Developing policy guidelines for the smooth
functioning of the channel on a day to day basis

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 Distribution channel
management (contd.)

• Distribution channel management encompasses all

activities dealing with the distribution function of the
firm
• The distribution strategy provides guidelines for
decision making
• The distribution management function can be viewed
as happening in two phases: the ex ante phase and the
ex poste phase

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 Distribution channel
management (contd.)

• The ex ante phase involves all the activities that are

associated with the design and establishment of the
distribution channel. These activities actually take
place before the distribution channel actually starts
functioning.
• The exposte phase involves managing the day to day
activities of the channel wherein the behavior of the
individual channel members are coordinated

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 Channel Management tasks
Design of the
channel structure
Ex ante
Phase
Establishing the
channel
Distribution Channel Strategy
Channel Objective
Activity Finalization
Motivating
Organizing the activities
Channel Members
Developing Policy Guidelines
Ex Poste
Phase
Resolving Conflicts
among channel
members

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