SDM Md 1

Amity School of Business


BBA V Semester

Sales and Distribution Management

Module-1

INTRODUCTION


OBJECTIVE (Gen) Introduction to Sales Management

Evolution, objective, functions and importance of sales management

Nature and role of sales manager’s job.

Sales management as a career.

Emerging trends in sales management


SALES MANAGEMENT

What is Sales Management?

“The planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal sales force.”

-American Marketing Association 1960

“ The management of sales force”


Evolution of Sales Management1. Situation before industrial revolution (1760AD)

• Pre industrial revolution ( Before 1760)• Dominating small scale manufacturers• Manufacturing was the major objective• Selling was easy

2. Situation after industrial revolutions• Post liberalization revolution• Large scale manufacturing organizations• Separate departments for manufacturing, finance and

sales• Selling was not easy• Need to identify new markets • Marketing function splits into sales and other functions

like market research, advertising, physical distribution


Objectives of sales management

Three general objectives:

• Sales volume

• Contribution to profits

• Continuing growth


Nature and Importance

of Sales Management

• Integration with marketing management

• Relationship selling

• Varying sales responsibilities


Importance of Sales Management

• The only function / department in a company that generates revenue / income

• The financial results of a firm depend on the performance of the sales department / management

• Many salespeople are among the best paid people in business

• It is one of the fastest and surest routes to the top management


Roles and Skills of a Modern Sales Manager

Some of the important roles of the modern sales manager are:

• A member of the strategic management team

• A member of the corporate team to achieve objectives

• A team leader, working with salespeople• Managing multiple sales / marketing

channels• Using latest technologies (like CRM) to build

superior buyer-seller relationships• Continually updating information on changes

in marketing environment


Skills of a Successful Sales Manager

• People skills include abilities to motivate, lead, communicate, coordinate, team-oriented relationship, and mentoring

• Managing skills consist of planning, organizing, controlling and decision making.

• Technical skills include training, selling, negotiating, problem-solving, and use of computers


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.

Amity School of BusinessSales Management Functions


STAFFING

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



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.



LEADING

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



CONTROLLING

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



Sales management as a career.• According to US News and World Report, Sales Manager is

one of the 50 Best Jobs of 2011 with a predicted increase of 51,800 job openings in the field by 2015 - a 15% growth rate.

Skills required for Success in Sales:-• Excellent communications skills• Strong planning and organization skills• Excellent people management skills• Good team worker• Openness and cooperation• Self-motivated, self-disciplined and having the ability to

work to tight deadlines• Excellent written and verbal English skills• Computer literate• Academically sound.

Amity School of BusinessLevels of Sales Management Positions

CEO /President

V. P. Sales /V. P. Marketing

National Sales Manager

Regional / Zonal / Divisional Sales Managers

District / Branch / Area Sales Managers

Sales Trainee / Sales Person / Sales Representative

First / Lower Level Sales Managers

Middle-Level Sales Managers

Top-Level Sales Managers / Leaders


Relationship sellingCustomer orientation

Global and ethicalIssues

New selling methods

Emerging trends in sales

management

Emerging trends in sales management

Technology


Vendor Management

“A vendor can be any person or a company that is providing services or products on behalf of a covered entity.”

• Vendor Management is the management and control, by an entity, of those third parties that supply goods and/ or services to that entity.

• A Vendor Management System (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services - temporary, and, in some cases, permanent placement services - as well as outside contract or contingent labor.

• Typical features of a VMS application include order

distribution, consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes.


Enterprise resource planning (ERP) • "Software solution that addresses the enterprise needs

taking the process view of an organization to meet the organizational goals tightly integrating all functions of an enterprise."

• Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc.

• ERP systems automate this activity with an integrated software application.

• Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.


• ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information.

• ERP systems typically include the following characteristics:• An integrated system that operates in real time (or next to

real time), without relying on periodic updates. • A common database, which supports all applications. • A consistent look and feel throughout each module. • Installation of the system without elaborate application/data

integration by the Information Technology (IT) department


Sales Force Automation (SFA)• Abbreviated SFA, sales force automation is a technique of

using software to automate the business tasks of sales, including order processing, contact management, information sharing, inventory monitoring and control, order tracking, customer management, sales forecast analysis and employee performance evaluation.

• SFA is often used interchangeably with CRM; however, CRM does not necessarily imply automation of sales tasks.

• SFA tool is often an integral part of an Enterprise Resources Planning (ERP) system


• Sales automation systems provide several key functions, plus a wide variety of extra features that are used by a small portion of a sales force.

• The main functions of a sales automation system include: a. Contact management b. Opportunity management c. Action Items d. Appointment Scheduling e. Messaging (e-mail, letter, & fax)

• One important side benefit of providing a sales force with a sales automation system is that sales management is able to generate reports, such as:

Sales activity reports Sales forecasts

SDM Md 1

Education

sales management functions

sales selling

objectives of sales

sales management evolution

sales department management

management of sales

sales management technology

sales training