intorduction to sales management

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INTRODUCTION TO SALES

MANAGEMENT

Christ University, Bangalore


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FlowofPresentation

Meaning and Objectives ofSales

Management

Role ofSales Manager

Sales Management and

Marketing ManagementRelationships

Sales Departments external

relations

Types ofSales Organization

Structure

Centralization and De-

centralization ofSales Force

Management

Christ Universit , Ban alore 2


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Sales Management

Sales Management is an

integral sub- system of

Marketing Management

Sales Management is the

administration of thepersonal selling activities of

the organization

In a modern organization,

Sales Management centers

around the management ofsales force and sales efforts


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Definition ofSales Management

The American Marketing Association defines Sales Management as

the planning, direction, and controlofpersonal selling, including

recruiting, selecting, equipping, assigning, routing, supervising,

paying and motivating as these tasks apply to the personal sales force

Sales Management refers to planning the personal selling effort,organizing the sales personnel and developing a winning sales team

Brech defined Sales Management as the overall management ofsales

and it refers toonly a specialized application of the process of

management as a whole


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Sales Management V/s Sales force

Management

Modern Sales Managers have broader responsibilities than just

managing the sales force

Even though their primary responsibility is management of the

personal sales force, that do not comprise their total responsibility

Sowe call the personnel- related responsibilities ofSales Managers asSales force Management

In otherwords, Sales force Management is just a part of Sales

Management


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Objectives/ Functions/ Responsibilities / Role

ofSales Management/ Sales Manager

From the company viewpoint, Sales Management has 3 general

objectives:

1. Sales volume

2. Contribution to profits, and,

3. Continuing growth The following are the most important duties and responsibilities ofa

Sales Manager:

a) Planning the personnel selling effort: Determine precisely the

place ofpersonal selling in the marketing mix of the firm and to set

the personal selling objectivesb) Merchandising: is defined as planning tooffer the right products at

the right time, in the right quantities, and at the right price,

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Christ University, Bangalore 4

c) Marketing research: Sales

Manager has toorganize and

manage marketing research

projects

d) Developing a winningsales team: Sales Manager is

responsible for recruiting,

selecting and training the sales

force, its compensation,

supervision, motivation andcontrol




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5Christ University, Bangalore



e) Distribution channels: The

Sales Manager has to select proper

channels ofdistribution and

maintain good relations with

distributors and dealersf) Financing the sales: The Sales

Manager is responsible for

providing and managing funds for

marketing


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g) Building the sales

organization: The Sales Managers

are required to ensure that the sales

organization (sales department) is

maintained in trim condition andcapable ofeffectively

implementing the personal selling

program of the firm

h) Sales Promotion and

Advertising: The Sales Manager isresponsible for advertising and

sales promotion to create, maintain

and extend the consumer demand


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Selling V/s Marketing

Selling Marketing

1. Emphasis is on the product 1. Emphasis is on the

customers needs

2. Internal- company (seller) 2. External- marketorientation (customer) orientation

3. Emphasis is on the sellers needs 3. Emphasis is on the

buyers needs

4. Narrow in sco pe 4. Wider in scope


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Sales Management and Marketing Management

Relationships

According to Philip Kotler, Marketing

management is the art and science of

choosing target markets and getting,

keeping, and growing customers

through creating, delivering, andcommunicating superior customer

value

According to William J. Stanton,

Marketing Management is the

marketing concept in action Marketing Management is a wider term

and it includes Sales Management also

Sales Management refers to the overall

managementof

sales


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Sales Management V/s Marketing Management

1. Meaning: Write the

definitions ofboth MM and

SM (Already given)

2. Concept: MM is a modern

concept while SM is an oldconcept

3. Object: The object ofMM

is to satisfy the needs of the

consumers and thereby

maximize the profit of theconcern. On the other hand,

the object ofSM is to

maximize sales with

emphasiso

n vol

ume


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Sales Management V/s Marketing Management


4. Scope: MM is a broad term and includes SM. SM is a narrow termand is a part ofMM

5. Performance of Activities: The activities ofMM are superiorwhile

the activities ofSM come under the jurisdiction ofMM


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Sales Departments External Relations

1. Final Buyer Relations

2. Industry Relations

3. Government Relations

4. Educational Relations

5. Press Relations Refer Page 216 ofCundiff

Still Text


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Types ofSales Organization Structure


The basic types ofsales organization structures are:1. Line Sales Organization

2. Line and StaffSales Organization

3. Functional Sales Organization

4. Committee Sales Organization


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1. Line Sales Organization

It is the oldest and simplest sales

organizational structure.

It is often used by smallfirms.

It usually consists ofonly a few

managers, who exercise authority

over specific functional areas of the

business, such as production,

finance, or sales Refer Diagram on Page 191 of

Cundiffand Still Text


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2. Line and Staff Sales

Organization

It is often found in large

and medium- sizedfirms,employing substantial

numberofsales personnel,

and selling diversified

product lines overwide

geographic areas It creates more functional

areas

Refer Diagram on Page 194

ofCundiffand Still Text


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3. Functional Sales Organization

The principle ofspecialization is utilized to the full extent in

Functional Sales Organization

The staff

specialist is given

line auth

ority t

oco

ntrol

hiso

r herfuncti

onthroughout the organization

Refer Diagram on Page 196 ofCundiffand Still Text


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4. Committee Sales Organization

Many firms have a sales training committee comprised of the general

sales manager, his or her assistants, the sales training manager etc.

It meets periodically to draft training plans and formulate sales

training pol

icies


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Centralization and Decentralization ofSales

Force Management

In the centralized salesorganization, almost all the

activities including sales force

management, are administered

fro

m a central

headquarters The central sales office has full

responsibility for recruiting,

selecting, training,

compensating, supervising,

motivating, controlling, andevaluating the sales force

In the decentralized

organization, all these activities

are handled by field sales

executives


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Force Management

Advantages of centralization1. Links selling with sales

promotion and advertising

2. Simplifies administrative work

3. Makes it easier toorganize

territories

4. Aids in the effectiveness of the

sales plan

5. Reduces bias in the hiring

process


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Force Management

Disadvantages of

centralization

1. Assigns decision- making

authority to individuals who

may be hundreds or thousandsofmiles away from the action

2. Limits understanding of

territorial conditions

3. Reduces time towork

closely the salespeople in the

field

4. Increases geographical

differences in preferences


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Force Management

Advantages of decentralization

1. Increases in- depth coverage of the market, resulting in higher sales

2. Increases controlof the market, resulting in increased sales

3. Improves direction of the sales force in creating greater sales

4. Improves customer services, which willlead to more sales

5. Reduces the need for territorial break- in time, as salespeople are from

the area

6. Improves salespeoples attitudes because of the reduction in travel time

and fewer nights away from home7. Reduces travel expenses


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Force Management

Disadvantages of de-centralization1.Increased costs resulting from a

duplication ofoverhead costs at each

branch

2.Attempting tofollow the plans

from the main office creates

management problems where

geographical differences are

important

Refer Page 198 of Cundiff StillText


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intorduction to sales management