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Sales Management
Initially sales management was equatedwith sales force management. As timewent on the concept of salesmanagement became broader.
According to AMA “The planningdirection and control of personal sellingincluding recruiting, selecting equipping,assigning, supervising paying andmotivating of the sales force
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defined as the management of a firm’spersonal selling function whiledistribution is the management of theindirect selling effort i.e.selling throughextra corporate organizations whichform the distribution network of thefirm. The sales management task thusincludes analysis, planning, organizing,directing and controlling of the
’
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It is the sale and delivery of goods/services from the manufacturer to the consumer can be consummateddirectly i.e. by the firm itself through itsown sales force or indirectly through a
network of middleman such aswholesalers and retailers.
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Contact- finding and communicating with prospectivebuyer
Prospecting- Bringing together the marketers offeringand the prospective buyer
Negotiation - Reaching an agreement on price andother terms of the offer so that ownership and possessioncan be transferred.
Promotion - Of the marketers offerings, and his
satisfaction generating potentialPhysical distribution - Actual transfer of possession
Collection- Of relevant consumers information andrevenue in exchange of goods or services
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Objectives of SalesManagement
Corporate Objectives
Profitability SalesVolume
Growth
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Describing thePersonal Selling
Function
Defining the
StrategicRole of theSales
Function
Developingthe SalesForce
Directingthe SalesForce
Determining
Sales ForceEffectivenessand
Performance
Sales Management Model
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Transactions Relationships
Local Global
Management Leadership
Individuals Teams
Sales Volume Sales Productivity
Sales Management Trends
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All organizations use their own salesforce or distribution network to reachout to their customers. Activities of the sales organization would have tobe coordinated with channel
operations if sales goals have to beeffectively realized.
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Promotion and the AIDA Model
Exhibit 14-4
Promotion Objectives Adoption Process AIDA Model
Informing
Persuading
Reminding
AttentionInterest
Desire
Action
AwarenessInterestEvaluationTrialDecision
Confirmation
}
}
{
14-9
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The advocates of this theory define that allthe circumstances, which led to the saleswere appropriate for the sales to have taken
place. In other words, if the sales person issuccessful in securing the prospect’sattention, maintaining his interest and
inducing his desire to buy the product,t he sales will result. Moreover, if the salesperson is highly skilled, he will take control of
the presentation, which would lead to sales.
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This theory emphasizes on the needs or problems of the buyer.The sales personassist the buyer in finding an
appropriate solution to the problem.Thissolution may be in terms of a product or service. This theory is based on the
analysis of the sequence of events thatgoes in the buyer’s mind during thesales presentation.
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Deciding upon typeand quality of salespersonnel required
Determination of thesize of the sales forceOrganization of thesales departmentTerritory designRecruitment & trainingproceduresTask allocation
CompensationPerformanceappraisal
FeedbackmechanismManaging channel
relationshipCoordination withMarketing
department
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Step1- Assessment of the competitivesituation and the corporate goals todetermine the output that salesmanagement is expected to give.
Step2- Define sales management
objectives in terms of deliveringthese outputs both quantitative andqualitative.
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Step3- Design sales strategy bydeciding upon: type of sales effortrequired, type of sales personnelrequired, size of the sales force,territory design, channel support &
coordination
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Examples ofl Selling
Telemarketing
Inside selling
Retail selling
Field selling
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Characteristics of Personal Selling
Flexibility Adapt to situationsEngage in dialog
Builds Relationships
Long term Assure buyers receiveappropriate services
Can not reach mass
audienceExpensive percontact
Numerous callsneeded to generatesale
Labor intensive
ConPro
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ORDERGETTERS
Currentcustomers
Newcustomers
ORDERTAKERS
Inside Order Takers(via mail, telephone,
internet)
Outside Field Sales
SUPPORTPERSONNEL
MissionarySalespersons
TradeSalespersons
Technical
Salespersons
Types of Salespersons
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16-18
• Salespeople have many names• Agents• Sales consultants• Sales Representatives• Account
Executives• Sales Engineers• District Managers• Marketing representatives
• Account Development
• Sales people have many names
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PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS
APPROACHING THE PROSPECT
FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
Pre approach: QUALIFYING PROSPECTS
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Roles of Selling
a. Identifying decision makers,decision processes, and
qualified buyersb. Promoting to corporate,travel trade, and other
groupsc. Generating increased sales
at the point of purchase
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• Providing detailed and up-to-date information to the traveltrade
• Maintaining a personalrelationship with key clients• Gathering information on
competitors’ promotions
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Functions of Sales Management
a. Sales-force staffing
and operationsb. Sales planningc.
Sales performanceevaluation
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Contents of the Sales Plan
a. Sales activitiesb. Sales objectivesc. Sales budget
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Roles of the Sales Plan
a. Preparing sales
forecastsb. Developing sales
department budgetsc. Assigning sales
territories and
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FIGURE 17-A How salespeople create value for customers
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FIGURE 17-3 The sales management process
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THE SALES MANAGEMENTPROCESS (cont.)
Input = activities and efforts
Sales Force Evaluation
Output = results
Sales Plan Implementation
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THE SALES MANAGEMENTPROCESS (cont.)
Sales ForceComputerization
Sales Force Automation and CustomerRelationship Management
Sales ForceCommunication
Sales Force Automation
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“Sales force automation (SFA)
is the use of technology tomake the sales function more
effective and efficient.”
Sales Force Automation
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Sales Organisation The sales organisation divides an
enterprise in the demand of the sales.
The sales organisation is responsiblefor the sales of materials and services.
The sales organisation is divided indistribution channels and divisions.
Each sales organisation has its ownentry range.
One sales organisation can be
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Sales Organisation: Purpose
To delegate authority andassign responsibility
Achieving coordination andbalance
Authority from top dpwn to fieldlevel sales men
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Setting up a sales organisation
Define the objectiveGroup the activities into jobsRecruit staff Provide for coordination andcontrol
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Types of Sales Organisations
Line FunctionPresident
Vise PresidentMarketing Manager Marketing Manager South West
SE MESales Officer
MR
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Tyes of Sales OrganisationLine and Staff
Marketing Manager
TrainingMana der t
ProductioManager
salesManag
Regional Sales Manager
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Funtional Sales Organisation
M- Sales M-Training M-Territoty M-SP M -DIS
SR SR SR SR SR
General Manager Sales
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How to Organise Field Force
Geographical OrganisatioProduct OrganisationCustomer Organisation
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Manpower Planning
Size of The Sales Force----
-----Work Load Method
Sales Potencial MethodIncremental Method
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Manpower Planning- PeesommelManagement
Job Job Job JobAnalysis Description Specification Evaluation
RecruitmentSeletionTraining
Performance AppraisalCompanc\sation
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Recruitment of Sales PersoneelSourcesWord of MouthSales Rep of Competing Companies
Sales Rep of non Competing CompaniesInternal TransfersCampus RecruitmentsPlacement Firms
Advertisements
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Selecting Sales Personeels
Reception of Applicant Application Blank
InterviewInspection of Past career Primary SelectionFinal SelectionMedical Check
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Sales Training
Training Programmes involves Aim
Identification of Training NeedsContentMethodsExecutionEvaluation
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Training Methods
On The Job TrainingOff the job trainingConference methodCase Study
Role Play
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Executive training andDevelopment
thee attempt to improve management
efficiency through a planned and delibratelearning process which seeks to developin managers cirtain attribute, skills and
knoeledge.
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Training Execution andEvaluation
The training PhilosophyTraining Organisation
Site of the training methodPadagogy
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Motivation and Morale of salespeople
What is motivationMotives of wants and goods
Theories of motivationMotivation towards goal directedbehaviour
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Compensation
Charectoristics of good compensationFairwage
Integrated to the motivational progrrameEqual pay for equal workEasy to understandEasy to administer
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Job evaluation andcompensation plan
Techniques of jobevaluationSimple ranking
Job gradingPoint system
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Controlling sales people:evaluationand supervision
Setting StandardsMeasuring actual performances
Objective of monitoringSales reportComparison of standards set and actualperformances
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Sales Territories
Territory may representGeographical area
Group of customers A market An industry
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Goals of territory management
To cover the market properlyTo deploy sales people effectively
To service the customer effectivelyTo evaluate the sales representativeTo control sales expenses
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Territory Management
GeneratingNew Accounts
ManagingExistingAccounts
PersonalTime
Management
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• An organised way of continually gathering and analysinginformation from every source relevant to the organisation
• MIS consist of people, equipment, and procedures to gather,
sort, analyse, evaluate and distribute needed information to themarketing decision makers• A MIS incorporates & combine the main aspects of marketing
research into a centralised management function which willmaintain a tight control on research procedures & ensure an
accurate data bank of information about customers, productsetc.• A MIS which can link external data with internal sources, such
as sales record, customer records & competitor information willprovide a strong basis for informed marketing decisions
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• MIS - mainly concerned with how tomanage information
• Ongoing information eg sales record• Monitored information - about the
economy• Requested information - Surveys
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• Developing Information-Involves obtaining the needed information for managers from different sources
• Internal data is secondary research already availablewithin the organisation. This can come from-Accounting-Sales force
-Marketing-Manufacturing