Management

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16-Apr-12

Introduction to Sales Management
• “Sales management is the attainment of sales force goals in an effective and efficient manner through planning, training, leading, and controlling organizational resources” • Sales management is planning, direction and control of personal selling. This essentially includes recruiting, selecting, equipping, assigning, supervising, compensating and motivating the sales force • Objectives of Sales Management Generate sales and earn revenue Providing Profitability Improving Market Share Improving Corporate Image Selling concept proposes that customer will not buy enough of an organization's products unless they are persuaded to do so through selling effort. Where as Marketing concept proposes that to achieve success, the focus should be on organization's ability to create, communicate and deliver a better value proposition through its marketing offer. 1

Introduction to Sales Management
Major Differences between Selling and Marketing

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Introduction to Sales Management
Sales management involves the execution of the following tasks: Setting personal selling objectives Formulating sales policies. Structuring the sales force. Deciding the size of the sales force. Designing / Demarcating / developing sales territories. Developing the sales forecasts and sales budgets. Fixing sales targets for individual sales territories /salesman. Creating the sales force – selection, recruitment, induction/ orientation. 3

Introduction to Sales Management
Managing the sales force - compensation, motivation, sales coaching/supervision evaluation/appraisal, training/development Building the sales organization. Managing the marketing channels. Ensuring growth and developing new accounts. Sales communication and reporting. Sales coordination and sales controlling including sales expense control. Creating and maintaining right image for the company and its products in the market. Co-ordination with marketing management in the areas like, product mix, pricing, distribution, advertising and sales promotion. Building relationship strategies with key customers

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Introduction to Sales Management
Personal selling:
Personal selling is one of the forms of ‘Promotion’. Other forms being advertising, sales promotion and publicity. It is the art of successfully persuading customers to buy a product or services from which they can derive suitable benefits, thereby increasing their total satisfaction. Personal selling is a face to face transaction, a personal correspondence or a personal telephonic conversation between a salesman and a prospective customer. A well trained salesman can be a very effective communication medium. Personal selling involves: Persuasion Flexibility of approach Supply of information Mutual benefit 5

Introduction to Sales Management
• The importance of personal selling from the point of view of manufactures as well as consumers. – From manufacturer’s point of view • It creates demand for products both new as well as existing ones. • It creates new customers and, thus help in expanding the market for the product. • It leads to product improvement. While selling personally the seller gets acquainted with the choice and demands of customers and makes suggestions accordingly to the manufacturer. • Builds long term relationship. – From customer’s point of view • Personal selling provides an opportunity to the consumers to know about new products introduced in the market. Thus, it informs and educates the consumers about new products. 6

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16-Apr-12

Introduction to Sales Management
• It is because of personal selling that customers come to know about the use of new products in the market. The sellers demonstrate the product before the prospective buyers and explain the use and utility of the products. • Personal selling also guides customers in selecting goods best suited to their requirements and tastes as. • It involves face-to-face communication. • Personal...
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