INTRODUCTION TO SALES

MANAGEMENT

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Flow of Presentation

• Meaning and Objectives of Sales

Management
• Role of Sales Manager
• Sales Management and
Marketing Management
Relationships
• Sales Department’s external
relations
• Types of Sales Organization
Structure
• Centralization and De-
centralization of Sales Force
Management

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Personal Selling

• According to Philip Kotler,

“Personal Selling involves oral
presentation in a conversation
with one or more prospective
purchaser for the purpose of
making sales”
• It is the direct face- to- face
communication between a
seller and a potential customer
• It is a form of two- way
communication unlike
Advertising, Sales Promotion
etc.
Sales Management

• Sales Management is an
integral sub- system of
Marketing Management
• Sales Management is the
administration of the
personal selling activities of
the organization
• In a modern organization,
Sales Management centers
around the management of
sales force and sales efforts
Definition of Sales Management

• The American Marketing Association defines Sales Management as

“the planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising,
paying and motivating as these tasks apply to the personal sales force”
• Sales Management refers to “planning the personal selling effort,
organizing the sales personnel and developing a winning sales team”
• Brech defined Sales Management as “the overall management of sales
and it refers to only a specialized application of the process of
management as a whole”
Sales Management V/s Sales force
Management
• Modern Sales Managers have broader responsibilities than just
managing the sales force
• Even though their primary responsibility is management of the
personal sales force, that do not comprise their total responsibility
• So we call the personnel- related responsibilities of Sales Managers as
“Sales force Management”
• In other words, ‘Sales force Management’ is just a part of ‘Sales
Management’
Objectives/ Functions/ Responsibilities / Role
of Sales Management/ Sales Manager
• From the company viewpoint, Sales Management has 3 general
objectives:
1. Sales volume
2. Contribution to profits, and,
3. Continuing growth
• The following are the most important duties and responsibilities of a
Sales Manager:
a) Planning the personnel selling effort: Determine precisely the place
of personal selling in the marketing mix of the firm and to set the
personal selling objectives
b) Merchandising: is defined as planning to offer the right products at
the right time, in the right quantities, and at the right price
,

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Objectives/ Functions/ Responsibilities / Role
of Sales Management/ Sales Manager
c) Marketing research: Sales
Manager has to organize and
manage marketing research
projects
d) Developing a winning
sales team: Sales Manager is
responsible for recruiting,
selecting and training the
sales force, its compensation,
supervision, motivation and
control

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Objectives/ Functions/ Responsibilities / Role
of Sales Management/ Sales Manager
e) Distribution channels: The
Sales Manager has to select proper
channels of distribution and
maintain good relations with
distributors and dealers
f) Financing the sales: The Sales
Manager is responsible for
providing and managing funds for
marketing

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Objectives/ Functions/ Responsibilities / Role
of Sales Management/ Sales Manager
g) Building the sales
organization: The Sales Managers
are required to ensure that the sales
organization (sales department) is
maintained in trim condition and
capable of effectively
implementing the personal selling
program of the firm
h) Sales Promotion and
Advertising: The Sales Manager is
responsible for advertising and
sales promotion to create, maintain
and extend the consumer demand

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Selling V/s Marketing

Selling Marketing

1.Emphasis is on the product 1. Emphasis is on the

customer’s needs
2.Internal- company (seller) 2. External- market
orientation (customer) orientation
3.Emphasis is on the seller’s needs 3. Emphasis is on the
buyer’s needs
4. Narrow in scope 4. Wider in scope
Sales Management and Marketing
Management Relationships
• According to Philip Kotler, “Marketing
management is the art and science of
choosing target markets and getting,
keeping, and growing customers
through creating, delivering, and
communicating superior customer
value”
• According to William J. Stanton,
Marketing Management is the
marketing concept in action”
• Marketing Management is a wider term
and it includes Sales Management also
• Sales Management refers to the overall
management of sales
Sales Management V/s Marketing Management

1. Meaning: Write the

definitions of both MM and
SM (Already given)
2. Concept: MM is a modern
concept while SM is an old
concept
3. Object: The object of MM
is to satisfy the needs of the
consumers and thereby
maximize the profit of the
concern. On the other hand,
the object of SM is to
maximize sales with
emphasis on volume
Sales Management V/s Marketing Management
4. Scope: MM is a broad term and includes SM. SM is a narrow term
and is a part of MM
5. Performance of Activities: The activities of MM are superior while
the activities of SM come under the jurisdiction of MM

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Sales Department’s External Relations

1. Final Buyer Relations

2. Industry Relations
3. Government Relations
4. Educational Relations
5. Press Relations
• Refer Page 216 of Cundiff
Still Text
Types of Sales Organization Structure
• The basic types of sales organization structures are:
1. Line Sales Organization
2. Line and Staff Sales Organization
3. Functional Sales Organization
4. Committee Sales Organization

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Types of Sales Organization Structure

1.Line Sales Organization

•It is the oldest and simplest sales
organizational structure.
•It is often used by small firms.
•It usually consists of only a few
managers, who exercise authority over
specific functional areas of the
business, such as production, finance,
or sales
•Refer Diagram on Page 191 of
Cundiff and Still Text
Types of Sales Organization Structure

2. Line and Staff Sales

Organization
•It is often found in large and
medium- sized firms,
employing substantial number
of sales personnel, and selling
diversified product lines over
wide geographic areas
•It creates more functional
areas
•Refer Diagram on Page 194
of Cundiff and Still Text
Types of Sales Organization Structure

3. Functional Sales Organization

•The principle of specialization is utilized to the full extent in Functional
Sales Organization
•The staff specialist is given line authority to control his or her function
throughout the organization
•Refer Diagram on Page 196 of Cundiff and Still Text
Types of Sales Organization Structure

4. Committee Sales Organization

•Many firms have a sales training committee comprised of the general
sales manager, his or her assistants, the sales training manager etc.
•It meets periodically to draft training plans and formulate sales training
policies

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 Centralization and Decentralization of Sales
Force Management
•In the centralized sales
organization, almost all the
activities including sales force
management, are administered
from a central headquarters
•The central sales office has full
responsibility for recruiting,
selecting, training, compensating,
supervising, motivating,
controlling, and evaluating the
sales force
•In the decentralized organization,
all these activities are handled by
field sales executives
 Centralization and Decentralization of Sales
Force Management
Advantages of centralization
1.Links selling with sales
promotion and advertising
2. Simplifies administrative work
3. Makes it easier to organize
territories
4. Aids in the effectiveness of the
sales plan
5. Reduces bias in the hiring
process
Centralization and Decentralization of Sales
Force Management
Disadvantages of
centralization
1. Assigns decision- making
authority to individuals who
may be hundreds or thousands
of miles away from the action
2. Limits understanding of
territorial conditions
3. Reduces time to work
closely the salespeople in the
field
4. Increases geographical
differences in preferences
 Centralization and Decentralization of Sales
Force Management
Advantages of decentralization

1. Increases in- depth coverage of the market, resulting in higher sales

2. Increases control of the market, resulting in increased sales
3. Improves direction of the sales force in creating greater sales
4. Improves customer services, which will lead to more sales
5. Reduces the need for territorial break- in time, as salespeople are from
the area
6. Improves salespeople’s attitudes because of the reduction in travel
time and fewer nights away from home
7. Reduces travel expenses
Centralization and Decentralization of Sales
Force Management
Disadvantages of de-centralization
1.Increased costs resulting from a
duplication of overhead costs at each
branch
2.Attempting to follow the plans
from the main office creates
management problems where
geographical differences are
important
•Refer Page 198 of Cundiff Still
Text
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YOU!!!!!!!!!!!