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Module 1 _ Session 2

Leni Varghese
SALES MANAGEMENT

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“Sales Management is the most
critical activity and the most

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difficult function in an organization.
It is like fuel to an engine.”

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“You can take away my money and take away

my factories, but leave me my sales staff


and I’ll be back where I was in two years.”
– Andrew Carnegie

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Sales Management
 "The planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising,
paying and motivating as these tasks apply to personal sales
force."
- The American Marketing Association defines Sales Management

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 Sales management is attainment of an organization's sales goals in an


effective & efficient manner through planning, staffing, training,
leading & controlling organizational resources.

 Sales management is systematic process involving: (1) formulation of


sales strategy through development of account management policies,
sales force compensation policies, sales revenue forecasts, and sales
plan, (2) implementation of sales strategy through selecting, training
, motivating, and supporting the sales force, setting sales revenue
targets, and (3) sales force management through development and
implementation of sales performance, monitoring, and evaluation
methods, and analysis of associated behavioral patterns and costs. 4
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Role of Selling
 Continuously monitor change in external
environment

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 Sharing of information with other departments

 Identifying potential prospects, qualifying and


developing long term relationship
 Retaining existing customers

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 How do you identify customers?
 How do you approach a potential customer?

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 How do you convince or develop interest in


your product?

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The Competitive Advantage
 The Physical product itself
 (Competitive features & benefits)

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 The Deal
 (Terms, credit, availability, delivery,
installation, ongoing support & applications)

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 Why do you lose existing accounts to
competitors?

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 What can you do to strengthen
relationships with your existing
customers?
 What factors might get in the way of
achieving these goals?

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 Death of the Salesman – Arthur Miller

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 Cold calling / Door knocking / door-to-door selling?

 Product & services?
 Prospect / customer / consumer
 Sale Gestation period (time from enquiry to sale) /
Lead Time (from order to delivery)
 Profit margin (SP – Cost) / Mark-up (Cost + Profit)
 Customers, consumers, prospects?
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Nature of Sales Management
v Crucial function of an organization
v Only revenue generating function in the
organization
v Contribute to Profits

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v Helps in attaining long term growth
v Selling helps an organization achieve its business
goals.
v Integration with marketing management
i. Field Selling – Personal selling
ii. Head-quarter marketing team – Promotion,
Marketing research, Marketing Logistics,
Customer service, Coordination
v Relationship Selling
i. Transactional Selling
ii. Value-added relationship Selling
iii.Collaborative Partnering Relationship Selling 11
v Varying Sales Positions & Responsibilities
v
Essence of Sales Management

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mer is the Boss – “Yesterday, Today & Tomorrow”
Customer is Profit – Everyone else is Overhead

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Scope of Sales Management
 Strategic
 Tactical
Operational

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A Changing Market Place

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International Considerations
 Ethnic Composition
 Religious Orientation
 Social Class Environment

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 Education
 Gender Bias
 Differences in Negotiation styles
 Differences in decision making
 Job Status and Company Protocol
 Perceptions of time
 Personal Relationships

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Role of Sales  Manager

Objectives are Decided

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Strategies are formulated

Delegation to Salesman

Time bound Goals

Achievement
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Responsibilities of a Sales Manager
 Understanding the economic structure of the industry
 Identifying segments within your market
 Identifying your target market
 Identifying your best customer in place

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 Undertaking market research to develop Profiles (demographic,
psychographic and behavioural) of your core customer
 Understanding your competitors and their products.
 Developing new products
 Undertake environmental scanning mechanism to detect opportunities and
threats.
 Understanding your company’s strengths and weaknesses
 Auditing your customers’ experience of your brand
 Developing marketing strategies for each marketing mix.
 Creating a sustainable competitive advantage
 17

Objectives of Sales Management
Quantitative Objective

Qualitative Objective
 Sales
 Provide technical advice to
 Revenue customers

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 Profits  Provide training to middleman’s
 Market Share sales personnel
 Controlling Internal Costs  Collect & report relevant market
 To obtain new accounts - Sales information to the
 To retain & capture market share –
management
Market Share  Maintain customer relationship
 To increase sales volume - Revenue  Sales team successfully delivers
 To determine sales volume that the company’s value
contributes to profitability - Profits proposition, brand strategy
and message

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For sustainable

 By keeping expenses low competitive advantage
Difference between sales and Marketing
 Marketing and sales are close relatives. Marketing sets the
scene. Sales finish the job. When all else is said and done,
marketing is part of the sales process. Sales is the end result of
marketing.

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 Sales is a part of marketing. It is the transfer of title of
ownership of goods.

 Marketing is concept oriented and sales is product oriented.

 Marketing function creates the dark function and sales
function craft the rain.

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Benefits of Effective Sales Management
 Higher quality and professionalism.
 Easier sales.

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 Less turn over.

 Bigger and better clients and accounts.

 Greater market share.

 Increased pride and confidence.

 More revenues and more profits.

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Challenges to Sales Management

vLarge No. of prospects

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vDispersed prospects
vHigh Cost of sales
vLow revenue per customer
vIneffective channel sales team.

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Responsibilities of Sales Management
 Building the right sales strategy
 Hiring the right team
 Creating the right compensation plans,

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territories and quotas
 Setting the right projections
 Motivating your team
 Tracking revenue against goals
 Resolving conflicts
 Training and coaching sales reps
 Managing processes
 Getting the sale!
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Sales Management Process

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Disqualify

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DUTIES OF THE SALES MANAGER


 Holds a unique position in the sales organisation.
 Plans, organises, directs, staffs & coordinates whole sales
 organisation.
He is the person who steers the wheels of sales organisation.

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 His status and power depends on the size of the organisation
in
 his charge.
 In small firms the general manager or managing director
 performs this duty.
 But in big manufacturing firms there usually a sales manger.
 In giant sized companies for some territories and/or products
 sales managers are appointed.
 Whatever the position of the sales manager, he is the guiding
 and driving force of the sales organisation
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Holds a unique position in the sales organisation. 
Plans, organises, directs, staffs & coordinates whole sales 
organisation. 
He is the person who steers the wheels of sales organisation. 
His status and power depends on the size of the organisation in 
his charge. 
In small firms the general manager or managing director 
performs this duty. 
But in big manufacturing firms there usually a sales manger. 
In giant sized companies for some territories and/or products 
sales managers are appointed. 
Whatever the position of the sales manager, he is the guiding 
and driving force of the sales organisation
Environmental Changes affecting Sales
Management
 Shorter Product Life Cycle
 Longer, More Complex Sales Cycle

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 Reduced Customer loyalty

 Intense Competition among Manufacturing


Companies.
 Rising Customer Expectations

 Increasing Buyer Expertise

 Electronic revolution in Communication

 Entry of Women in Sales Management

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Sales Strategies
Sales Marketing Salesforce Salesforce
Objectives
Increase / Strategy Strategy Tactics
Goals (Action Plans)

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How do they obtain their
goals?

 Knowledge of the sales environment

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 Planning for sales

 Recruiting the sales force

 Training the sales force

 Motivating the sales force

 Supervising the sales force….

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SALES FUNNEL

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Why Sales so Important
 sales team is the voice of your company
 The sales team will make or break your marketing
efforts.

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 Sales and marketing serve one purpose: to
generate revenue.
 The sales team does a great job delivering the
company’s value proposition, brand strategy and
messages.
 sales team is a revenue machine.
 Sales – cost of sales = gross margin
 Gross margin – expenses = net profit
 Sales, gross margin and expenses are affected by
the caliber and performance of sales management
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Adaptive Sales Management
 Strategic Planning: Areas of focus and activity are centrally
defined at the SAM Server by Management. Sales,
marketing and product management can define customer
call routes, key call objectives, campaign activities,
competitor intelligence, Plano-grams and sales best
practices etc. Product and pricing information is loaded
and synchronised as required with other systems.
 Tactical Planning: Field representatives digest the information
that Management has pushed out to them through SAM and
plan their days accordingly.

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 In-Field Execution: Field representatives use SAM in the field
to make well organised and highly focused calls. Field
activities are aligned with corporate strategies and allow
focus to be on selling, relationship building, and customer
service. SAM is also a sales and communication tool, with
important news, presentations, product information and
advertisements being instantly available for viewing with
the customer.
 Market Intelligence: While in the call, field representatives
gather important customer and market information, this can
be through the use of surveys, merchandising, ranging etc
 Information Exchange: As frequently as necessary
information is sent to/synchronised with the SAM server to
facilitate collaboration with other workers and provide
information for analysis and reporting.
 Rapid Information Analysis: SAM Analytics is a complete
Business Intelligence tool, that allows information to be
reported, analysed and interpreted in a fast efficient manner
by the appropriate person/s within the company.
 Strategic Planning begins the cycle again, but with the
opportunity to improve effectiveness, adapt to market /
competitive forces and ultimately enhance the entire sales
process for increased sales and a markedly improved
customer experience.
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