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Reference book Sales Management by Edward W Cundiff, Richard R Still, Norman A.

P Govoni

Sales Management as a career


Advantages Fast growth opportunities Measurable performance Opportunity to Build wide network/ relationship Helps Build emotional intelligence Opportunity to gain Industry knowledge Inter Personal Skills Can be the of the company More scope to enrich in all job functions Generally turn to be good in HR Personality becomes aggressive

Sales Management as a career


Perils Non performance easily identified Some tend to remain just good salesmen First to take the brunt of Non Performance

The Modern Sales Personnel


Is good at:

Planning Building and Maintaining effective Organization Control and Monitoring Implementation Achieving end Result

Responsibilities in Sales Management


Achieve Targeted Sales Contribute to Profit Maintain Growth

Evolution of Sales function (Pre-Industrial Era)


Demand > Supply

Buyer Seek Sellers

Manufacturing had Higher Importance

No Mass Production

Evolution of Sales function (Post-Industrial Era)


Mass Production Commenced

New Markets to be found

Specialized Departments for Personal Selling

Competition Forced it further

How marketing Function got Split?


MARKETING

Sales

Market Research

Credit/ Collection

Traffic / Shipping

Advertising

Sales Promotion

Export

Merchandis sing

Activities in Sales Management


Planning Control of Personal Selling Recruitment Training Equipping Assigning Motivating Routing Supervising The Above activities are related to Personal Sales Force

Sales and Marketing Dept work together Sales is both and Operational and Executive function

Sales Management and Financial Results


Sales - Cost of Sales = GROSS PROFIT
Gross Margin - Expenses = NET PROFIT Hence Sales has a Direct Influence on the Profitability

Any impact on Sales speaks on the Profit Directly

Sales, Expenses and Profit relationship


Situation Growth in Sales with Higher Growth Expenses Solution Maintain Sales growth but shrink Expenses No result- shrink both Sales and Expenses Catch At times Sales Organization get blind to expenses in sight of Sales Volume

Sales Manager as a Co-ordinator

Organizing & Co-ordination function


What do they co-ordinate ? Co-ordinate different order getting methods Cross objectives of different channels Co ordinate with other Marketing activities Co ordinate personal Selling with Advertising and Sales Promotion Sales to capitalize on Advertising How do they co ordinate ? Co ordination by participate method Advertising and Sales promotion an arial support. What done best by Personal Selling and Advertising is decided

Co ordination with Distribution Network


(In case of dealer network Management)

Create middlemen (dealers) Persuade them to stock Create market pull for them to stock Co ordinate between company and dealer for Promotional work Establish dealer identity among end users Protect the interest of the company and the dealer Share promotional Cost and Risk with dealer

Ajay & Co.

Rahul & Co

Sanjay & Co.

Vijay & Co.

Sales Management & control

Analysis of the Situation

What is the present performance level? How did we achieve the present level? Where are the trends for future? How do we get to the target?

Control measures should work at clockwise precision

Setting Performance Standards


Fix upper and Lower limits of performance Analyze factors like Area Market Potential Salesmen skills Assignment base Past performance Future objective Cost of Sales while fixing range of performance

Gathering information on Actual Performance


Identify the relevant information needed Avoid duplication Establish periodicity and time schedule for information gathering System for action plan based on information.

Evaluating Performance
Compare results with Target / Standard Question analyze more than standard variation Consider influences out of control

Action to correct Controllable Variations


Provide Directions on more effective way Guide/ Train Install Procedures & Practices to control

Adjust the Un-controllable factors


Rework on Standard if un-realistic Re look at the policies and procedures Identify lacunae in Planning

Sales Control Styles

Yes, expectations are high

Informal Control
More effective in smaller organizations Should have a feel for the pulse of business Able to quickly put you finger on the problem Be close touch with market

This is what you think of a company with no follow up

Formal control
For larger organizations Have written practices and sales policies Build authority for changing With exceptions makes changes

Policy formation and reviewInformal control


Study all influencing factors prior to policy formation Consider Intangible factors as well Review periodically Amend based on: Market response Uncontrollable environment changes. Acquire more information
In case of new product changes are more likely to happen due to unknown factors

Formal control on sales volume


Fix sales volume target based on market forecast Monitor periodically Review based on: Industry sales trends Activities of Competitors Market share percentages Govt Policies

dont you need for control and systems

Budgetary Control
Control of Sales, Expenses, Margins and hence profit Individual profit and loss statement can be made for Territories Products Marketing Channels Class of Customers Install review system and control Sales , Expenses Take timely corrective action Take decision of elimination with over all Marketing objective in mind

Pre requisite for success of Sales Management Control


A de-centralized decision making Senior Management pitches in when situation not manageable Time is the factor Train and empower hierarchy down the line for decision making