Module1 introductiontosalesmanagement-100105235409-phpapp01

Sales Management

Introduction to Sales Management And

Personal Selling

Sales - Definition

- A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.

Marketing – Definition

• Marketing is the process associated with promotion for sale goods or services. It is considered a "social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.” It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Sales and MarketingWhat's the Difference?

Sales• Sales starts with seller & is

preoccupied all the time with the needs of the seller

• Emphasizes on saleable surplus available with the company

• Seeks to convert products in to cash

• Views business as – goods producing process

• Sales views the customer as the last link in the business

Marketing• Marketing starts with the

buyer and focuses constantly on the needs of the buyer

• Emphasizes on identification of market opportunity

• Seeks to convert customer needs in to products

• Views business as – a customer satisfying process

• Marketing views the customer as the very purpose of business

Sales

• Customer orientation - makes customer demand match the products the company currently offers

• Usually one to one• Generate purchases/orders -

fulfill sales volume objectives

• Short term

Marketing

• Listens to and eventual accommodation of the target market and determine future needs

• One to many• fulfill customer's wants and

needs thru products and/or services the company can offer

• Longer term

Sales

• Push• Sales is a narrower concept• Sales is the ultimate result

of marketing

Marketing

• Pull• Marketing is a wider concept• Marketing shows how to

reach to the Customers

The sales and marketing relationship

• Marketing and sales are very different, but have the same goal.

• Marketing improves the selling environment and plays a very important role in sales.

• The marketing department's goal is to increase the number of interactions between potential customers and company, which includes the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations, creating new sales channels, or creating new products (new product development), among other things.

Evolution, Nature and Importance of Sales Management

Evolution of Sales Management• Situation before industrial revolution in U.K.

(1760AD)• Situation after industrial revolutions in U.K., and

U.S.A.• Marketing function splits into sales and other

functions like market research, advertising, physical distribution

What is Sales Management?

• One definition: “The management of the personal selling part of a company’s marketing function.”

• Another definition: “The process of planning, directing, and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying, and motivating the personal sales force.

WHAT IS SALES MANAGEMENT?

Sales management is the attainment of sales force goals in an effective and efficient manner through:

• Planning

• Staffing

• Training

• Leading

• Controlling organizational resources

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

PLANNING

The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

STAFFING

Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

SALES TRAINING

The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

LEADING

The ability to influence other people toward the attainment of objectives.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

CONTROLLING

Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

Objectives of SALES MANAGEMENT• Following are the three general objectives of

sales management: • 1. Generate sufficient sales volume. • 2. Contribute towards current profit. • 3. Ensure continuous growth of the

organization.

Other objective • To achieve Market share targets

• To manage dealer network

• To organize sales training

• To handle customer complaints

• To manage Sales promotion campaigns

• To effectively cover market

Nature of Sales Management

• Its integration with marketing management

• Relationship Selling

Transactional Relationship / Selling

Value – added Relationship / Selling

Collaborative / Partnering Relationship / Selling

Head-Marketing

Customer Service

Market Logistics

SalesMarket Research

Promotion

• Varying Sales Responsibilities / Positions / Jobs

Sales Position Brief Description Examples

• Delivery salesperson • Delivery of products to business customers or households.• Also takes orders.

• Milk, newspapers to households

• Soft drinks, bread to retail stores.

• Order taker (Response selling) • Inside order taker

• Telemarketing salesperson takes orders over telephone• Outside order taker. Also performs other tasks

• Behind counter in a garment shop• Pharma products’ orders from nursing homes • Food, clothing products’ orders from retailers

• Sales support• Missionary selling• Technical selling

• Provide information, build goodwill, introduce new products• Technical information, assistance

• Medical reps. in pharma industry

• Steel, Chemical industries

• Order-getter (Creative, Problem-solving, Consultative selling)

• Getting orders from existing and new household consumers• Getting orders from business customers, by solving their business and technology problems

• Automobiles, refrigerators, insurance policies • Software and business solutions

The sales management process

T o p Sales L ead ers (Strategic)

F irst- L ine Sales L ead ers (O p eratio nal)

M id d le Sales L ead ers (T actical)

FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

Regional Sales Leader

CEO

President

Vice President of Marketing

National Sales Leader

Zone Sales Leader

District Sales Leader

Assistant District Sales Leader

Nonmanagerial Salespeople

Sales Trainee Salesperson Key Account

Sales Trainee

Salesperson

Key Account Salesperson

District Sales Manager

Regional Sales Manager

Zone Sales Manager

National Sales Mgr.

Vice President of Marketing

President

FIGURE 1.5 A SALES PERSONNEL CAREER PATH