Meaning of sales Management

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Lesson

• Meaning of sales Management

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Sales 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.

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• Objectives of Sales Mgmt.- achieve-
• Sales volume/targets
• Contribution to profits
• Continuing growth
• Top management
• delegates
• Marketing Mgmt.
• Further delegates to
• -
• Sales Management

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Sales 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
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summary

• 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.

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• Thanks

7
Lesson

• Selling process
• Theories of selling

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Sales 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.

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Sales 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.

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Sales 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

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Sales 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
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Sales 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.

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Summary

• 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.

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• Thanks

15
lesson

• Direct selling vs Indirect selling

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Direct 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 .

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Direct selling methods

• Database marketing
• Telemarketing
• Cold calling
• Referral marketing
• Sales promotion
• Networking
• presentations

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Indirect 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.

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Indirect 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.

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summary

• 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.

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• thanks

22
lesson

• Main tasks in sales management

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Sales 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

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Sales 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.

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Sales 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

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Sales 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

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Sales 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.
  

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Sales 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
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Sales Distribution Management Contd..

• 4. Reviewing territory design
• 5. Assigning right territories to right salesman
• 6. Maintaining database on territories

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summary

• 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.

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• thanks