Sales & Distribution Management - Module I

8/6/2019 Sales & Distribution Management - Module I

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Prof. Seema Menon

Email: [email protected]


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` Sales Management- is the attainment of salesforce goals in an effective and efficient manner

through planning, staffing, training, leading, and

controlling organisational resources

` Managing a sales force involves recruiting, hiring,training, supervising, compensating salespeople,

motivating them to become

problem solvers, and providing the proper

planning and backup support so they can performtheir jobs properly.


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OrganisationSales

Managers

Personal Sales

RepresentativesCustomer

Value


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` Sales

` Revenues

` Profits

` Market Share

` Controlling internal costs


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` Estimate the market potential

` Planning for sales

` Recruiting the sales force

` Training the sales force

` Motivating the sales force

` Supervising the sales force


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SalesManager

Personal

Sales

Reps

Estimating the

market potential

Planning

Recruiting

Training

Motivating

Supervising


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` Estimating the potential of a market is very important for a company planning

to enter a new market.

` This is a process where an organisation estimates the attractiveness of the

market for selling its products or services.

` Before venturing into a market and investing huge sums of money, it is very

important to asses it in order to avoid irrecoverable losses.

` Besides studying the broad market factors such as the size of the population,

GDP and the spending capacity of the market, firms should also analyse

market specific factors such as customers tastes and preferences, the cultural

factors prevailing, their willingness to buy the products and so on.

` Data regarding customer and market specific factors can be obtained through

primary and secondary sources.


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Planning-is the conscious, systemic process of

making decisions about goals and activities

that an individual, group, work unit, or

organisation will pursue in the future and the

use of resources needed to attain them.

Key areas include:` Automation

` Forecasting

` Financial Planning

` Quotas

` Time & territory


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`Automation

Hardware: Computers,

Printers, Copiers,Phones, etc

Software: What type of software does the

sales force require?


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` Estimating the future sales of the company in a

given market is called sales forecasting

` Over the years, the importance of sales forecastinghas been on the rise across the world

` Apart from the mathematical models developed

earlier, many new software tools have emerged for

forecasting sales in a better fashion.


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` Forecasting can be classified into qualitative forecasting and

quantitative forecasting.

` The methods used in qualitative forecasting are

user expectations, sales force composite,

jury of executive opinion,

Delphi technique

market test.

` The methods used in quantitative forecasting are: Time series approach

Explanatory approach


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` The method of sales forecasting is selected on the basis of factors such as:

accuracy,

available time,

costs,

pattern of data,

experience of the company

requirements of the software.

` For effective forecasting, certain criteria in terms of:

accuracy,

plausibility,

durability,

flexibility,

availability of statistical indexes,

organisational participation

and demand patterns, should be met.


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` Sales forecasting faces several difficulties such as:

lack of adequate sales history,

lack of time,

money and qualified personnel.

changing customer attitudes,

changing fashions and fads also act as hurdles to

effective forecasting.


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` Budgeting

Salespeople expenses

Administrative expenses

Other selling expenses Communication expenses

` Profit objectives

Break-even analysis

Controlling the budget

Selling the budget to top management


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` Sales quota- the specific sales or profit objective asalesperson is expected to achieve

INR sales

Unit volume

Margin

Selling effort

Product type

` Other types of quotas Expense quotas

Profit quotas

Activity quotas


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` Optimum time must be spent with those prospectswith the greatest potential

` Territory management involves:

Identification and classification of prospects

Analysis and development of the salespeoples work loads

How many salespeople will the territory support

Territorys boundaries Optimum way to travel from one prospect to the next

Sales & Distribution Management - Module I

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