Sales Management

Sales Management
Module 1
Industrial Revolution
Prior Post
manufacturing & selling marketing & selling
As the business activity became more complex and dynamic, the term
“Sales Management”
changed due to the changes in business operations.
Earlier the sales management was solely concerned with the direction of the
sales force personnel.
Sales Management
Term is used by businessman to refer to the direction or supervision of salesmen.
But in the present business scenario, it has included other aspects of

management also, such as
planning, direction, control of personnel selling, including recruiting,selecting,

equipping, supervising, paying and motivating, etc., (All activity related to sales
force)
Role of Sales Management in Marketing
In the past sales and marketing are treated as two separate functions leading to role
conflict- PUSH VS PULL
Generally if advertisement is effective the function of salesperson is to take orders
Companies are reducing the dependence on sales team by going online.
Small organisations go large scale via television home shopping
Slowly two function have started to merge and sales function is becoming more
customer centric than product driven.
Example : today personal selling includes telemarketing, key account management,

team selling, independent representatives, part-time sales force, network marketing,
internet selling and electronic selling (selling mix)
Nature & Responsibility of Sales Management
Nature or characteristic of sales management can be explained by:
1) Integration with marketing management.
2) Relationship Selling
3) Varying sales responsibilities (order getter, order takers, Sales Support)
As sales management is a part of marketing management, sales planning should

be integrated with marketing planning. A company's marketing team typically
consist of two basic groups:
(a) field selling (or personal selling) team, and
(b) head quarter marketing team.
(a) field selling (or personal selling) team, and

(b) head quarter marketing team.
Head quarter marketing team: These headquarter based service and support
functions are:
(a) Promotion: Consists of advertising, sales promotion, public relations,
publicity, and direct marketing.
(b) Marketing research: Collecting and interpreting information on customers,
competitors, products, markets and so on.
(c) Market logistics: Physical distribution of finished goods including
warehousing, inventory, transportation and order processing.
(d) Customer service: Pre-sales and post-sales service as well as delivery
service to existing and prospective customers.
(e) Co-ordination: Sometimes there is a need to co-ordinate between
customers, company's salespeople and production or operations, by
employing inside salespeople.
Buyers and salespeople, who do business together have some type of business
(or working) relationships. Their relationships have a range or spectrum,
3) Varying sales responsibilities
Sales Job
Order Takers
Inside Order Takers Order takers
Delivery Salespeople
● Order takes responds to the already committed customers.
They are not expected to persuade customers to buy the
Outside Order Takers
company’s products or increase their quantity of purchase.
Order Creators
Missionary Salespeople
● They are supposed to book customer orders and pass on
Order Getters the information to relevant people in the company.
Front-line Salespeople
New Business Salespeople ● They are expected to be accurate. They are also expected
Organizational Salespeople to have information about when the order that has been
Consumer Salespeople
booked will be delivered to customers.
Sales Support
Salespeople Example: Account Executive only perform client service in an
Technical Support Sales
People advertisement agency
Merchandisers
Order Takers
Inside Order Takers Inside Order Takers
● Retail sales assistants are typical inside order takers.
● The customer has full freedom to choose products without
the presence or influence of a salesperson.
Order Creators
● The salesperson’s task is transactional. He receives
payments and passes over the goods to the customers.
Order Getters
Front-line Salespeople Example: A retail cashier/clerk from Wal-Mart, Big Bazar or any
New Business Salespeople grocery store
Organizational Salespeople
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Delivery Salespeople
● Delivery salespeople are primarily concerned with delivering
the product.
● There is little attempt to persuade customers to increase the
Order Creators
order.
● Changes in order size are customer driven.
Order Getters ● Though delivery salespeople do not try to influence demand,
Front-line Salespeople winning and losing an order is heavily dependent on
New Business Salespeople reliability of delivery.
Example: Salespeople that delver milk, newspaper, magazine
Sales Support
and pizzas. Zomato delivery boy
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Outside Order Takers
● Salespersons visits the customer, but they primarily respond
to customer requests rather than actively seek to persuade
them.
Order Creators
● They are being replaced by the more cost-efficient
telemarketing teams who call customers and book their
Order Getters orders.
New Business Salespeople Example: visit customers and replenish inventory stocks of
Organizational Salespeople resellers, such as retailers or wholesalers
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Order Creators (Influences)
● The prime objective of order getters is to convince
customers to buy the company’s products. At some stage in
the order-getting process the salesperson should
Order Creators
understand customer requirements and convince him that
his company’s products serve his requirements best. Some
Order Getters salespersons get too excited about persuading the
Front-line Salespeople customers to buy the company’s products.
New Business Salespeople ● Customers feel embarrassed and angry when a salesperson
Organizational Salespeople becomes very insistent though the customer has made it
clear that he does not want the product. A salesperson
Sales Support
should avoid such situations and should gracefully back off
Salespeople when the customer does not seem interested in the product.
People Example: bank employee encourages customers to opt life
Merchandisers insurance
Order Takers
Inside Order Takers Missionary Salespeople
● In some industries/ notably pharmaceuticals and building
industry, the sales task is not to close the sale but to
persuade the customer to specify the seller’s products or
Order Creators
brand.
● Medical representatives calling on doctors cannot make a
Order Getters direct sale since the doctor does not buy drugs but
Front-line Salespeople prescribes them for patients.
New Business Salespeople ● In these situations, the selling task is to educate and build
Organizational Salespeople goodwill for the company.
● a missionary salesperson is also known as a Detailer.
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Order Getters
● Order getters are in typical selling jobs where the major
objective is to persuade the customer to make a direct
purchase.
Order Creators
● Both frontline and sales support team operate in situations
where a direct sale can be made
Order Getters ● In many situations frontline sales people are supported by
Front-line Salespeople technical support sales people and merchandisers
New Business Salespeople
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers New Business Salespeople:
● The selling tasks are to win new businesses by identifying
and selling to prospects.
Order Creators
● These salespersons should maintain good relations with
current customers who can provide them leads.
Order Getters ● They should also be prepared to make a lot of cold calls and
Front-line Salespeople visits.
New Business Salespeople
Organizational Salespeople Example: Business Development Executives

Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Organizational Salespeople:
● There are industrial sellers who try to establish and nurture a
long-term relationship organizational buyers.
Order Creators
● These salespersons should be very sensitive to customers’
problems.
Order Getters ● The selling job may involve team selling where sales people
Front-line Salespeople are supported by production and technical specialists.
New Business Salespeople ● They have to act as mediators between the customer and
Organizational Salespeople the functional departments of their own company.
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Consumer Salespeople:
● They sell products and services such as cars, insurance to
individual customers.
Order Creators
● These salespeople have to be sensitive to customers’ time
and they should not be insistent even when customers have
Order Getters declined to buy.
Front-line Salespeople ● Sensing that a customer does not want the product is as
New Business Salespeople important as sensing that he may want the company’s
Organizational Salespeople product.
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Technical Support Sales People:
● Where a product is highly technical and the negotiations are
complex, a salesperson may be supported by product and
Order Creators
technical specialists who can provide the detailed technical
and financial information required by customers.
Order Getters ● This may be on-going as part of a key account team or as
Front-line Salespeople temporary basis with the specialist being called into the
New Business Salespeople selling situation whenever required.
Sales Support
Salespeople
People
Merchandisers
Order Takers
Inside Order Takers Merchandisers:
● They provide sales support in retail and wholesaling selling.
● Orders are negotiated nationally and sales to individual
Order Creators
outlets are supported by merchandisers who give advice on
display, implement sales promotions, check stock levels,
Order Getters and maintain contact with store managers.
New Business Salespeople Example: Big Bazar, More, Buy n Save, Mega Mart
Sales Support
Salespeople
People
Merchandisers
Roles of Modern Sales Managers
● Playing a strategic role in the company, by giving key inputs for developing long-
term company marketing and sales plans, such as sales forecasting, salesforce
management, evolving sales and marketing strategies, implementing and controlling
sales budget.
● Working as a member of the corporate team to achieve objectives such as
customer satisfaction, sales growth, and market share.
● Working as a team leader with the salespeople to achieve the objectives or goals
of sales and profits.
● Managing multiple sales channels such as company's salesforce, electronic (or
online) marketing and telemarketing.
● Using latest technologies to build superior buyer-seller relationships. cs.
● Continually updating information and understanding the changes in marketing
environment like customers' businesses, competitors' strategies and tactics,
government regulations and technological changes.
Skills of a Sales Manager
1) People skills: The people skills include the sales manager's abilities to motivate,
lead, communicate, and co-ordinate effectively with the people around him/her.
The ability to develop team-oriented relationships is important. With respect to
salespeople, the sales manager should understand their individual needs and
skills, and carry out coaching or mentoring to improve performance.
2) Managing skills: For managing the salesforce, the sales manager should have
administrative or managing skills like planning, organising, controlling, and
decision making. These skills can be learnt by attending management
development programmes.
3) Technical skills: These are specific tasks or functions such as training, selling,
negotiating as well as the ability to use computers (or information technology
skills) and problem-solving abilities in the specific industry discipline.
TYPES OF SALES MANAGERS/SALES MANAGEMENT POSITIONS
There are three levels of sales managers in the organisational hierarchy, as

shown in Figure. These are:
(a) Strategic or top-level managers,
(b) Tactical or middle-level managers, and
(c) Operational or first-line managers.
Role of Sales management in Marketing Strategy Development.
● Identify the business goals
● State the marketing goals
● Research the market
● Profile the potential customers
● Profile the competitors
● Develop sales strategies that supports the marketing goals
Basically align sales activities to marketing mix.

Sales versus Market Orientation
Sales Management in the 21st Century
● Building long-term relationships with customers

● Creating more nimble and adaptable sales organizational
structures
● Removing functional barriers within the organization to
create greater job ownership and commitment from
salespeople
● Shifting sales management style from commanding to
coaching
● Leveraging available technology for sales success
● Integrating salesperson performance evaluation to
incorporate all activities and outcomes
What is Personal Selling?
● Personal selling involves oral conversations, either by telephone or face-to-
face, between salespersons and prospective customers.
● Personal selling is where businesses use people (the "sales force")
to sell the product after meeting face-to-face with the customer.
● The sellers promote the product through their attitude, appearance and
specialist product knowledge. They aim to inform and encourage the
customer to buy, or at least trial the product.
WHAT IS SALESMANSHIP?
● It is also an art of persuading one to spent money

● Art of persuading someone to buy good or products that will give him a lasting
satisfaction
IT IS AN
ART OF
INLFUENCING
OTHERS
BUYER SELLER DYAD
• The term dyad is used for interactions between people.
• Thus buyer seller interactions can also be said as buyer seller dyads.
• The seller can either be a personal salesman, or an advertisement, or
any such combination of a pull or push strategy.
• This interaction between buyer and seller is known as buyer seller dyad.
• The objective of a marketers is to optimally utilize buyer seller dyads in
such a manner that the customer buys the products
Marketing implications of buyer seller dyads
• Sales personnel should be matched with the customer so as to
increase interaction.
• A factor majorly affecting buyer seller dyads is the impression brought
on from childhood that sales and marketing involves tricking the
customer into buying the product. This too affects the interaction
process
• Sales people are stereotyped even before their pitch. Thus they need
to be trained in such a manner that they overcome the resistance so as
to have a positive interaction.
• Selling is a two way process involving both the consumer and the
marketer, a buyer and a seller.
Four Theories of Selling
AIDAS
“Right set of circumstances”
“Buying Formula”
“Behavioral Equation”
• AIDAS and “Right Set Of Circumstances” are seller oriented
theories.
• “Buying Formula” theory of selling is Buyer oriented.
• The “Behavioral Equation” theory emphasizes the buyer’s

decision process but also takes the salesperson’s influence
process into account.
AIDAS theory of selling
• A-Securing attention.
• I-Gaining Interest.
• D-Kindling desire.
• A-Inducing Action.
• S-Building Satisfaction.
“Right Set of Circumstances”
• Theory can be summarized as “Every thing was right”.
• This theory is also known as “Situation-response” theory.
• A sales person needs to be well skilled to handle the set of
circumstances.
BUYING FOMULA SELLING THEORY
The name “buying formula” has been given by the
late E.K. Strong.
• It is a step-by-step explanation of the buyer’s needs.
• Reduced to its simplest form, the mental processes involved in a
purchase are
After adding the fourth element, it becomes
In purchasing, then, the element “solution” involves two parts:

(1) product (and/or service) and
(2) trade name (name of manufacturer, company, or sales-person).
After modification in the solution and
satisfaction, the buying formula becomes
After adding adequacy and pleasant feelings,
it becomes
Where the sales person should emphasis would depends upon a variety
of circumstances. They are
1. If the prospect does not feel a need or recognize a problem that can be
satisfied by the product or service, the need or problem should be
emphasized.
2. If the prospect does not think of the product or service when he or she feels
the need or recognizes the problem,
the association between need or problem and product or service should be
emphasized.
3. If the prospect does not think of the trade name when he or she thinks of
the product or service, the association between product or service and trade
name should be emphasized.
4. If need or problem, product or service, and trade name are well associated,
emphasis should be put upon facilitating purchase and use.
5. If competition is felt, emphasis should be put upon establishing in the
prospects’ minds the adequacy of the trade-named product or service, and
pleasant feelings toward it.
6. If sales to new prospects are desired, every element in the formula should
be presented.
7. If more sales to old customers are desired, the latter should be reminded.
(Developing new uses is comparable to selling to new customers.)
“Behavioral Equation” Theory
“Behavioral Equation” Theory
Using a stimulus response model and incorporating findings from behavioral
research, J.A. Howard explains buying behavior in terms of the purchasing
decision process, viewed as phases of the learning process.
Four essential elements of the learning process included in the stimulus-

response model are:
1) DRIVES:
a) INNATE DRIVES (stem from the physiological needs, such as hunger, thirst,
pain, cold, and sex.)
b) LEARNED DRIVES (such as striving for status or social approval, are
acquired when paired with the satisfying of innate drives)
2. CUES:
Cues are weak stimuli that determine when the buyer will respond.
a) Triggering cues activate the decision process for any given purchase.
b) Non-triggering cues influence the decision process but do not active it, and may
operate at any time even though the buyer is not contemplating a purchase. There
are two kinds:
1) PRODUCT CUES
2) INFORMATIONAL CUES
c) Specific product and information cues may also function as triggering cues. This
may happen when price triggers the buyer’s decision.
3. RESPONSE
Response is what the buyer does.
4. REINFORCEMENT
A reinforcement is any even that strengthens the buyer’s tendency to make a particular
response.”
Howard incorporates these four elements
into an equation
B=PxDxkxV
Where
B= act of purchase
P= response tendency
D=Drive level
K= incentive potential (benefits)
V= intensity of all the cues
Howard incorporates these four elements into
an equation
B =P * D * k * V
Where
B = response or the internal response tendency, that is, the act of purchasing a brand
or patronizing a supplier
P = predisposition or the inward response tendency, that is, force of habit
D =present drive level (amounts of motivation)
K =“incentive potential” that is, the value of the product or its potential satisfaction
to the buyer
V =intensity of all cues: triggering, product, or informational

Sales Management

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Sales Management

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Sales Management

Term is used by businessman to refer to the direction or supervision of salesmen.

But in the present business scenario, it has included other aspects of

planning, direction, control of personnel selling, including recruiting,selecting,

Generally if advertisement is effective the function of salesperson is to take orders

Companies are reducing the dependence on sales team by going online.

Small organisations go large scale via television home shopping

Example : today personal selling includes telemarketing, key account management,

1) Integration with marketing management.

As sales management is a part of marketing management, sales planning should

(a) field selling (or personal selling) team, and

Organizational Salespeople Example: Business Development Executives

There are three levels of sales managers in the organisational hierarchy, as

● Identify the business goals

● State the marketing goals

● Research the market

● Profile the potential customers

● Profile the competitors

● Develop sales strategies that supports the marketing goals

Basically align sales activities to marketing mix.

● Building long-term relationships with customers

● It is also an art of persuading one to spent money

“Right set of circumstances”

• “Buying Formula” theory of selling is Buyer oriented.

• The “Behavioral Equation” theory emphasizes the buyer’s

In purchasing, then, the element “solution” involves two parts:

Four essential elements of the learning process included in the stimulus-

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