Title: Meaning of sales Management
1Lesson
- Meaning of sales Management
2Sales 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.
3- Objectives of Sales Mgmt.- achieve-
- Sales volume/targets
- Contribution to profits
- Continuing growth
- Top management
- delegates
- Marketing Mgmt.
- Further delegates to
- -
- Sales Management
4Sales Management Contd..
- Sales Executives as Coordinator-
- Production Department sales deptt.
- Advertising Department-sales deptt.
- HRD-sales deptt.
- Coordinating with Advertising
- Marketing
Sales Department
Advertising Sales
5summary
- 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.
6 7Lesson
- Selling process
-
- Theories of selling
-
8Sales Management Contd..
- 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.
9Sales Distribution Management Contd..
- 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.
10Sales Distribution Management
- Theories of Personal Selling-
- Is selling an Art or a Science.
- AIDAS Theory of Selling-
- where,
- A Attention
- I Interest
- D Desire
- A Action
- S Satisfaction
11Sales Distribution Management Contd..
- 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
- problem
- Need or problem Product and/or
trade Purchase satisfaction - Service name
Adequacy Adequacy
Pleasant Pleasant Feeling
Feelings
12Sales Distribution Management Contd..
- 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 potentialthat is, the value of
the product or its - potential satisfaction to the buyer.
- V Intensity of all cues triggering, product
or informational.
13Summary
- 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.
14 15lesson
- Direct selling vs Indirect selling
16Direct 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 .
17Direct selling methods
- Database marketing
- Telemarketing
- Cold calling
- Referral marketing
- Sales promotion
- Networking
- presentations
18Indirect 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.
19Indirect 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.
20summary
- 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.
21 22lesson
- Main tasks in sales management
23Sales Distribution Management Contd..
- Tasks involved in Sales Management
- Determining and achieving firms 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
24Sales Distribution Management Contd..
- 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.
25Sales Distribution Management Contd..
- 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
26Sales Distribution Management Contd..
- 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
27Sales Distribution Management Contd..
- 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.
28Sales Distribution Management Contd..
- Topics to be discussed-
- Structuring the sales force
- Deciding sales force size
- Designing sales territories
- a) What is a sales territory?
- b) Why sales territories?
-
Territory size
Territory shape
29Sales Distribution Management Contd..
- 4. Reviewing territory design
- 5. Assigning right territories to right salesman
- 6. Maintaining database on territories
30summary
- 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.
31