Lesson
Meaning of sales Management
Sales Management
Sales Management as defined by:-
Sales Management is planning, direction, and control of
personal selling including recruiting, selecting, equipping,
assigning, routing, supervising, paying and motivating the
sales force.
Objectives of Sales Mgmt.:- achieve- Sales volume/targets
-
Contribution to profits
-
Continuing growth
-
Top management
delegates
-
Marketing Mgmt.
Further delegates to
Sales Management
Sales Management – Cont’d..
Sales Executives as Coordinator:-
- Production Department –sales deptt.
- Advertising Department-sales deptt.Sales Department
- HRD-sales deptt.
Coordinating with Advertising
Marketing
Advertising
Sales
summary
• Sales management is a core function of any
sales organisation , be it into product selling
or selling of services. It is this function
which brings in revenue and profits to the
sales organization , rest all other are cost to
the company.
Thanks
Lesson
Selling process
&
Theories of selling
Sales Management – Cont’d..
What is Personal Selling?
Involves – oral conversations, either by telephone or face to
face, between sales persons and customers.
Contribution to Personal Selling:• Sales generate revenue
• Sales people provide market research and customer feedback
• Sales people provide solutions to problems
• Sales people provide expertise and serve as information resources
• Sales people serve as advocates for the customer when dealing with
the selling organization.
The four sales channels:• Field selling
• Tele marketing
• Inside selling – relying on phone, mail, e-commerce.
Sales & Distribution Management –Cont’d..
Personal Selling Processes
Learning objectives:• To understand about the steps in personal selling process
• To know the mistakes that can be done in sales.
Steps in Personal Selling Process
• Consists of creating new customers, and maintaining existing
customers. Sales people follow a series of steps in identifying
prospects and turning them into customers.
The Sales Cycle
1. Prospecting
Appointment making
Compensation
2. Pre-approach
6. Follow up
3. Presentation
5. Closing
the sale
4. Negotiations & handling
objectives
Sales & Distribution Management
Theories of Personal Selling:A) Is selling an `Art’ or a `Science’.
B) AIDAS Theory of Selling:where,
Satisfaction
A = Attention
I = Interest
Actions
D = Desire
A = Action
Desire
& S = Satisfaction
Interest
Attention
Sales & Distribution Management –Cont’d..
C) “Right set of circumstances” Theory of selling.
“Situation – response, theory.”
D) “Buying Formula” Theory of selling.
need (or problem) Solution Purchase
need product end/or trade purchase satisfaction/dissatisfaction
or
service
Adequacy
Adequacy
problem
Need or problem
Product
Service
Pleasant
Feeling
and/or trade
name
Pleasant
Feelings
Purchase
satisfaction
Sales & Distribution Management –Cont’d..
E)
“Behavioural Equation” Theory:B = P x D x KxV
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.
Summary
• Selling process involves methodologies step
by step in getting closer to your client and
achieving the sales objectives by
successfully selling the products and
services to clients.
• Thanks
lesson
• Direct selling vs Indirect selling
Direct selling
• It means when product or service is being
sold directly , face to face or one –to-one to
an individual consumer. Many times
middlemen are eliminated and sales persons
directly deal with end consumers .
Direct selling methods
•
•
•
•
•
•
•
Database marketing
Telemarketing
Cold calling
Referral marketing
Sales promotion
Networking
presentations
Indirect selling
• Selling where sales organzations use
channels of distribution to sell their
products or services . They do not sell
directly to end consumers rather use
middlemen to sell their products and
services. Middlemen are known as
customers.
Indirect selling
• Most of the consumer durable firms and
FMCG companies use indirect selling as
their medium to sales. CRM is a major tool
in success of indirect selling along with
good advertising , brand management, and
decent profit margins.
summary
• Direct selling and indirect selling are the
two methods to sell the products and
services in open market and reach millions
of consumers. It depends upon the nature of
products and services that which method
they adopt to sell.
• thanks
lesson
• Main tasks in sales management
Sales & Distribution Management –Cont’d..
Tasks involved in Sales Management
• Determining and achieving firm’s personal selling
objectives
• Formulating sales policies
• Structuring the sales force
• Designing sales territories
• Developing sales forecasts and sales budgets
• Fixing sales quotas/targets for individual sales
territories/salesmen
Creating the sales force
- selection
- recruitment
- induction/orientation
Sales & Distribution Management –Cont’d..
Managing the sales force
- Compensation
- Motivation
- Morale building
- Sales coaching/supervision
- Evaluation/Appraisal
- Training & Development
• Managing the marketing channels
• Ensuring growth and developing new accounts
• Sales communication & report writing
• Sales coordination and sales control,including sales expense control
• Building sales organization
• Assisting market management in aspects like product mix, pricing,
distribution, advertising and sales promotion
• Creating and maintaining the right image for the company and its
products in the market.
Sales & Distribution Management –Cont’d..
Areas where personal selling objectives have to be set:• Sales volume and sales growth
• Share of each product in the total volume
• Market share
• Profits
• Selling expenses
• Key accounts
• New accounts
• Addition of new dealers and expansion of channel
• Proportion of cash & credit sales
• Collection of sales proceeds/amounts due
• Pre sale and after sales service
• Training of dealers & customers
• Assistance in sales promotional measures
• Supplying market intelligence
Sales & Distribution Management –Cont’d..
Areas where sales policies have to be set:Product - Appraising the product line on a regular basis and
effecting necessary rationalization and improvements.
• Which products should find a place in the product line
• Whether some of the existing products are to be dropped
• Whether any new products are to be added
• Whether product design or product quality needs to be
changed
• What models, size, colours and packing are to be sold
• How product service is to be provided
• What kind of product guarantees are to be given
Sales & Distribution Management –Cont’d..
Distribution
• Channel design and channel types
• Channel remuneration, motivation and training
• Channel- principal relations.
• channel costs
Pricing
• Whether prices should match competition or whether those
should be above or below competition
• Pricing method to be followed for each class of customer
or order
• Discounts and rebates to be given
• Teams of delivery/dispatch and terms of payment.
Sales & Distribution Management –Cont’d..
Topics to be discussed:1. Structuring the sales force
2. Deciding sales force size
3. Designing sales territories
a) What is a sales territory?
b) Why
sales
Territory
size territories?
Territory shape
Sales & Distribution Management –Cont’d..
4. Reviewing territory design
5. Assigning right territories to right salesman
6. Maintaining database on territories
summary
• This lesson will help you in understanding
the activities of sales management as an
activity , It is an independent activity and
thus a separate department in any sales
organisation which is mainly responsible fo
selling of its products and services.
• thanks