SALES MANAGEMENT

Acc to American Management Association

Planning, directing and controlling of personal selling including recruiting, selecting, equipping, assigning, routing, supervising paying and motivating as these tasks apply only to the sales force.

Acc to Canfeild B.R.

An activity that involves the direction and control of salesman, sales planning, budgeting, policy making, coordination of marketing research, advertising, sales, promotion and merchandising and the integration of all business activities that contribute to increase sales and profits.

OBJECTIVES OF SALES MANAGEMENT

a) Establishing the distribution Set- up

Selling through the factory outlet only Selling through branches only Selling through selective regions or entire country Selling through one distributor/ multi distributor Selling through company owned showroom

 Selling through the dealers, retailers, stockiest at rural/ urban markets Arranging logistics b) Maximization of Sales The shares of major competitors in that product The impact of substitution on that product The estimated market share, new product can achieve Production level required for such market share c) Maximization of profits

d) Increase of market share

e) Returns on equity involved

Acc to Robert N. Mc Murry in his famous article The mystique of super salesmanship in Harvard Review (March- April 1916)

He has classified sales persons position in the following ways:

a) Positions where a salespersons job is to deliver a product, e.g. milk, bread, oil, gas (deliverer) b) Positions where a salespersons is an internal order taker, e.g. Counter sales clerk (Order Taker) c) Position where a salespersons is an order taker but works in field as pizza boys, soap sellers. (Order Taker) d) Position where a salespersons is not expected or permitted to take order but is called only to build goodwill or to educate actual and potential customers. E.g. Medical Representative (Missionary)

e) Position where emphasis is placed on technical knowledge. E.g. sales person selling engineering products or computer equipment. (Technician)

f) Positioning which demand the creative sales of tangible products, e.g. vacuum cleaner (Demand creator)

g) Positioning which demand the creative sales of intangible products, e.g. insurance, advertising, education (Demand creator)

Roles of Sales Force

Deliverer Order Taker

 Missionary Technician Demand Creator

Task Performed by Sales Force

Prospecting Communicating Selling Servicing Information gathering Allocating

Sales managers functions can be divided into two:

a) Personal Selling Satisfaction of needs Building profitable and symbiotic relationship b) Sales Management1. Is more strategic and for a long term consequence, as it involves planning organizing, directing, and controlling of all the selling activities of an organization

Selling approach highlights:

1. Maintaining good customer relationship 2. Managing the profitability of a firm 3. Managing customer complains 4. Building brand values in the eyes of customer

The specific duties and responsibilities of sales manager can be summarized as:
1. Determining sales force objectives and goal 2. Finalizing sales force organization, size, territory and quota 3. Forecasting and budgeting sales 4. Selecting, recruiting, and training the sales force 5. Motivating and leading the sales force 6. Designing compensation plan and control systems 7. Designing career growth plans and building relationship strategies with key customers

Emerging trends in Sales Management

a) Customer Orientation b) Technology c) Relationship Selling d) Diversity e) New Selling Methods f) Global and Ethical Issues

Sales Management Function

a) Sales programming:
i) Plans and policies ii) Sales Plans

b) Sales Organization:- facilitating maximum output

i) Personal Direction: Recruitment, Selection, Right Type of Compensation, Working conditions. ii) Sales Direction: Territories, Quotas, Routing, Scheduling, Type of Reporting, Training & Development iii) Sales Control: Direct supervision, Review of sales performance, Sales Budget, Sales Expenses iv) Cooperation & Coordination: With other department, With Marketing Department, Sales Meetings

c) The Production Function:

i) Setting Price, Development and other Sales term, ii) Physical handling of product. iii) Customer Feedback

d) The Marketing Functions:

i) Marketing Research ii) Feedback about competition iii) Distribution and Relationship iv) Linkage with MIS

e) Business Development Function

Functions of Sales Manager

Functions of manager can be divided into 3 main functions: I) Administrative Function: a) Sales policies b) Sales planning c) Sales Organization d) Direction and Motivation e) Coordination II) Operative Functions: a) Recruitment b) Selection c) Training e) Territory allocation and routing

f) Controlling g) Physical Distribution

III) Staff Function: a) Marketing Research b) Advertising c) Sales Promotion d) Merchandising & Product Development e) Sales Analysis & Performance Appraisal f) Channel Management

Salesmanship

These persons have fundamental knowledge of the skill or craft. Salesman is a person who invariable has a through knowledge of his profession and use innovative ways and means to achieve his objectives.

Salesmanship has been defined in various ways:

a) Salesmanship is an art of persuading person to buy goods or services, which will give them lasting satisfaction. b) Salesmanship is an art of helping prospects and customers achieve their goal in life. c) Selling and buying process wherein the salesman ascertains the customers needs and indicates

convincingly how the needs can be satisfied through purchase of goods and services.

d) Salesmanship is the art of solving the customers problem through the benefits offered by the products and services being sold by the salesman.

Salesmanship as Art and Science

Approaches to build customer contact

a) Sales Representative to buyer b) Sales representative to buyer group c) Sales team to buyer group

d) Conference selling e) Seminar selling

Designing Sales Force

a) Sales force objectives b) Sales force strategy c) Sales force structure d) Sale force size e)Sales force compensation f) Managing sales force Job Analysis Recruitment and selection Training Directing sales team Motivating sales team

g) Evaluating Sales Representatives