Download VTU (Visvesvaraya Technological University) MBA 4th Semester (Fourth Semester) 16MBAMM401-Sales Management SM Module 1 Important Lecture Notes (MBA Study Material Notes)
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
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1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
WHAT MAKES A GREAT SALES MANAGER?
68
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
WHAT MAKES A GREAT SALES MANAGER?
68
? Communication
? Managing the performance
? Team leader
? Convincing
? Pleasing personality
? Decision making
? Motivation
? Resilience
? Delegation
? Passion
? Positive attitude
69
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
WHAT MAKES A GREAT SALES MANAGER?
68
? Communication
? Managing the performance
? Team leader
? Convincing
? Pleasing personality
? Decision making
? Motivation
? Resilience
? Delegation
? Passion
? Positive attitude
69
Some more points..
o Integrity
o Loyalty
o Innovation
o Availability
o Listening
o Learning
o Confidence
o Able to coach
o strategic
70
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
WHAT MAKES A GREAT SALES MANAGER?
68
? Communication
? Managing the performance
? Team leader
? Convincing
? Pleasing personality
? Decision making
? Motivation
? Resilience
? Delegation
? Passion
? Positive attitude
69
Some more points..
o Integrity
o Loyalty
o Innovation
o Availability
o Listening
o Learning
o Confidence
o Able to coach
o strategic
70
Responsibilities
71
? Sales planning and budgeting
Determinig sales force objectives and goals.
qFinalizing sales force organization, size, territiry, quota
? Estimating demand and forecasting of sales.
? Determination of size and structure of the sales
organization.
? Recruiting, selecting, and training of sale?s people
? Allocating of salesforce and setting sales quota
? Compensating, motivating and leading the salesforce.
? Analyzing sales volume cost and profit
? Measuring and evaluating motivating salesforce
performance.
? Monitoring marketing environment
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
WHAT MAKES A GREAT SALES MANAGER?
68
? Communication
? Managing the performance
? Team leader
? Convincing
? Pleasing personality
? Decision making
? Motivation
? Resilience
? Delegation
? Passion
? Positive attitude
69
Some more points..
o Integrity
o Loyalty
o Innovation
o Availability
o Listening
o Learning
o Confidence
o Able to coach
o strategic
70
Responsibilities
71
? Sales planning and budgeting
Determinig sales force objectives and goals.
qFinalizing sales force organization, size, territiry, quota
? Estimating demand and forecasting of sales.
? Determination of size and structure of the sales
organization.
? Recruiting, selecting, and training of sale?s people
? Allocating of salesforce and setting sales quota
? Compensating, motivating and leading the salesforce.
? Analyzing sales volume cost and profit
? Measuring and evaluating motivating salesforce
performance.
? Monitoring marketing environment
72
Roles and Responsibilities of a
Sales Manager
?
o Determining?the?sales?force?objectives?and?goals
o Finalizing?the?sales?force?organization,?size,?territory,?and?quota
o Forecasting?and?budgeting?sales
o Selecting,?recruiting?and?training?the?sales?force
o Motivating?and?leading?the?sales?force
o Designing?compensation?plan?and?control?systems
o Designing?career?growth?plans?and?building?relationship?
strategies?with?key?customers
o ?understand?who?can?perform?a?particular?task
o Meeting?the?sales?targets
o A?sales?manager?devises?strategies?for?competitor?handling
o Map?potential?customers?and?generate?leads?for?the?organization
o Brand?promotion
o Maintaining?and?improving?relationships?with?the?client.?
FirstRanker.com - FirstRanker's Choice
1
MODULE 1
Introduction To
Sales management
Prof. Jaya Shetty
Assistant Professor
Dept. of Business Administration
MITE, Moodabidri
2 3
Marketing Vs Sales
4
The only business function that
generates revenue.
5
SALES MANAGEMENT
Planning, direction and control of personal
selling including recruiting, selecting, training,
equipping, assigning, supervising, compensating
and motivating as these tasks apply to the personal
sales force.
6
Sales management
o Management of the personal selling task.
o Selling is an exchange transaction. Exchange of
Product or service for money
o Money is the revenue or the earnings of an
enterprise often called ?turnover? or ?top line?
o Sales therefore is the only revenue generating
function in an enterprise.
EVOLUTION
OF
SALES MANAGEMENT
7 8
YEAR CIRCUMSTANCES REMARKS
1945 End of Second world War.
Production oriented.
Making things was more important
than selling them.
1955 ? 1965 Marketing orientation. Whatever is being made would appeal
to customers and sold in market.
1963 Consumer champion started Selling has to deal with well informed
customers.
1965 ? 1975 Marketing became
professionalized.
Empathy and ego drive into
considerations of selling.
1970 Managing a salesforce. Practical format.
Mid ? 70s A trade mark was started. Research based approach.
Late 70s Recognition that different
customer groups need different
selling approaches.
Last 10
years
Telephone selling
Electronic revolution
CRM, Professional buyers.
Development of call centre.
E ? commerce started.
9 10 11 12 13 14 15 16 17 18 19 20 21
Objectives of sales
management
o 3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales ? cost of sales = gross margin.
Gross margin ? expenses =net profit.
IMPORTANCE OF SALES MANAGEMENT
o Achieves broad organizational objectives.
o Helps in decision making and formulating strategies.
o Helps to face competition.
o Ensures customer satisfaction.
o Promotes goodwill of the institution.
o Manages sales personnel.
o Helps in managing sales force effectively.
o Useful in promoting foreign trade.
o Creating employment opportunities.
o Helps in controlling selling expenses.
22
CHALLENGES IN SALES MANAGEMENT
o High pressure
o Training and development
o Longer sales cycles
o Failure in closing the sales
o Complex and demanding
o Problems in competitive differentiation.
23
DIFFERENCES BETWEEN SALES MGT AND
MARKETING MANAGEMENT
24
BASIS SM MM
1)Meaning Sales management is
concerned with planning,
organising, motivating and
controlling the personal
selling functions.
MM is concerned with
analyzing planning and
enforcing the marketing
programmes for the
satisfaction of customers.
2)Evolution Sales mgt evolved in 4
th
decade of 20
th
century
MM evolved in the 5
th
decade of 0
th
century.
3)Concept Sales management is an
old concept
MM is a latest concept.
4)Objectives Maximise the sales Increase the satisfaction of
the customers.
5)Beginning of work Production of goods. Prior to the manufacturing
of goods.
Continuation?
25
BASIS SM MM
6) Satisfaction of wants Satisfaction of immediate
wants of the customers.
Empasises on future needs
of customer.
7)Seller Vs Buyer
orientation
Seller oriented Buyer oriented
8) Inspection and control Inspection is under
Marketing Mgt.
Under General manager
9)Profit Short term profit Long term profit
26
Sales management: evolution
o Industrial Revolution ? 1760
o Small home industries ? Large scale
manufacturing ?marketing ? sales and
sales support
o Concept of hunters and farmers
o The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions of
all types.
27
The salesman
o ?..they make more noise and more
mistakes, create more cheer, correct
more errors, adjust more differences,
spread more gossip, hear more
grievances, pacify more belligerence and
waste more time under pressure, all
without loosing their temper, than any
other class of professionals ?including
politicians.
28
The salesman
o ?they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink
all kinds of liquids ?good and bad- sleep
before, during and after business, with
no sympathy from the office.
o They draw and spend more money with
less effort, they come at the most
inopportune time, under the slightest
pretext, ask more personal questions.
o Yet they are a power in society?
29
The salesman
o With all their faults, they keep the wheels
of commerce turning, and the currents of
human emotions running. More cannot
be said any man. Be careful whom you
call a salesman, lest you flatter him.
-Donald Benenson in Ziglar on Selling
Sales Management
?QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON?
31
Sales organization
o With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
(the Sears story)
o Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
32
Sales organization
o Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
33
Purpose of organization
o Eliminate waste of effort
o Minimize friction
o Maximize co-operation
o Permit development of specialists
o Ensure that all activities get done
o Achieve co-ordination/balance
o Define authority
o Fix responsibility
34
Types of organization
structures
o Line organization: line managers perform
sales and sales management activities.
o Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.
o They are not directly responsible for achieving
sales targets.
35
Organization structures
o Functional organization: focus is on the principle of
specialization. Each specialist has a functional
responsibility and are permitted to direct and control
the salesperson through their immediate superior.
o Horizontal organization: This organization structure
removes management levels (hierarchy) and also
departmental boundaries.
o The support functions like strategic planning, human
resource, and finance are looked after b a small team
of senior executives
36
Organization structure
o Horizontal structure.
o Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
37
v Clear authority & Responsibility
v Quick response & Decision, Low Cost
v Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force
Sales Force
Sales Manager
Head ?Marketing
38
Head -
Marketing
Marketing
Services
Sales
Promotion
Brand
Market
Research
Area Sales
Managers
Sales Force
v Administrative Simplicity
v Access to Specialists
v Multiple reporting
v HOD is Pressures to co-ordinate
Functional Sales Organization
39
Research & Design team
Customer Research
Product / Service design
Operations team
Production
QA
Engineering Systems
Customer Support team
Service
Training
Information
Customer Satisfaction teams
Sales & Marketing
Pricing & Promotion
Channels
Logistics
Planning Team
Strategy
Finance
HR
C O O
40
Sales relation with marketing
activities
o Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
o Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw data
is collected by sales people.
41
relationships
o Sales and service: contributes to
strategy success.
o Sales and distribution: minimizes stock
out situation; improves inventory control;
helps sales to focus on demand
generation.
o Sales & Production:
o Sales and R&D
o Sales &Finance
42 43 44 45
PERSONAL SELLING
46
ARE PERSONAL SELLING AND
SALESMANSHIP SYNONYMOUS?
47
o PERSONAL SELLING IS WHERE
BUSINESSES USE PEOPLE ( THE
SALES FORCE ) TO SELL THE PRODUCT
AFTER MEETING THEM FACE TO FACE.
48
DEFINITION:
According to American Marketing Association,
? Personal selling is oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales?
49
Objectives of Personal Selling
o To sell the products.
o To build interests.
o To spread awareness about products.
o To persuade customers for purchase.
o To fulfill orders.
o To build long term relationships.
50
Types of Personal Selling
o Personal selling can be broadly classified
into three categories.
? Industrial selling
o Selling to reseller
o Selling to business user
o Institutional selling
o Selling to Government
? Retail selling
? Service selling
51
o *INDUSTRIAL SELLING:-It involves selling
the capital item like equipment ,machinerys
to the industrial users ,industrial sales
personal are usually very well educated
experience and train people they provides
technical information and assitances.
52
INDUSTRIAL SELLING
o Also termed as Business to business
selling.
53
SELLING TO RESELLERS
o A reseller is a wholesalers or retailer or
an intermediary who buys finished goods
and resell them to the end users.
o Example: hero cycle, T seriers etc
54
SELLING TO BUSINESS
USERS
o That means output of one producers
enters into the production process of
another producer to manufacture a final
goods for the consumption of end users.
o Example: IBM sells Intel Pentium
Processors whch are used by Compaq
or HCL Infosysytems to make computers.
55
INSTITUTIONAL SELLING
o These institutional customers use the
products in their daily operations.
o Here the product is used in providing
support to the buyer business rather than
producing the buyer products.
o Example: Xerox in photocopiers,
Johnson and Johnson in surgical
equipments.
56
SELLING TO GOVERNMENT
o In many countries govt is leading buyers.
o The salespersons ultimate buyers are the
employees of govt.
57
RETAIL SELLING
o A retailer usually sells directly to the
ultimate customers.
o Example : Shopper?s Stop, Big Bazar,
Wal ? Mart etc..
58
SERVICE SELLING
o Services are activities or benefits
provided to consumers.
o Service such as insurance, airline and
travel are intangible in nature.
o Example: education, tourism, hotel,
insurance, hospital, banking.
59
PROS AND CONS OF
PERSONAL SELLING
o PROS
o High customer attention message is
customized
o Interactivity
o Persuasive impact
o Potential for development for relationship
o Adaptability
o Opportunity to close the sale
60
CONS
o High cost
o Labor intensive
o Expensive
o Can only reach limited number of
customer
61
STAGES OF PERSONAL
SELLING EVOLUTION
o PROVIDER :selling activity limited to order
taking
o PERSUADER : attempting persuade to
customer to buy
o PROSPECTOR: seeking out buyer perceived
to have a need
o PROBLEM SOLVER: buyers identify the
problems to be met by goods.
o PROCREATER : seller determines buyers
need and fulfill them
62 63 64 65 66
QUALITIES AND
RESPONSIBILITIES OF SALES
MANAGER
67
WHAT MAKES A GREAT SALES MANAGER?
68
? Communication
? Managing the performance
? Team leader
? Convincing
? Pleasing personality
? Decision making
? Motivation
? Resilience
? Delegation
? Passion
? Positive attitude
69
Some more points..
o Integrity
o Loyalty
o Innovation
o Availability
o Listening
o Learning
o Confidence
o Able to coach
o strategic
70
Responsibilities
71
? Sales planning and budgeting
Determinig sales force objectives and goals.
qFinalizing sales force organization, size, territiry, quota
? Estimating demand and forecasting of sales.
? Determination of size and structure of the sales
organization.
? Recruiting, selecting, and training of sale?s people
? Allocating of salesforce and setting sales quota
? Compensating, motivating and leading the salesforce.
? Analyzing sales volume cost and profit
? Measuring and evaluating motivating salesforce
performance.
? Monitoring marketing environment
72
Roles and Responsibilities of a
Sales Manager
?
o Determining?the?sales?force?objectives?and?goals
o Finalizing?the?sales?force?organization,?size,?territory,?and?quota
o Forecasting?and?budgeting?sales
o Selecting,?recruiting?and?training?the?sales?force
o Motivating?and?leading?the?sales?force
o Designing?compensation?plan?and?control?systems
o Designing?career?growth?plans?and?building?relationship?
strategies?with?key?customers
o ?understand?who?can?perform?a?particular?task
o Meeting?the?sales?targets
o A?sales?manager?devises?strategies?for?competitor?handling
o Map?potential?customers?and?generate?leads?for?the?organization
o Brand?promotion
o Maintaining?and?improving?relationships?with?the?client.?
ASSIGNMENT NO : 01
73
1. What is Sales Management? What are its objectives? (Dec-2010)
2. What is Personal Selling? What are its objectives? (Jan 2011,14)
3. Explain briefly the Types of personal selling? (Jun-2010, Jan-
2013)
4. Explain the Emerging Trends in Sales Management (Jun 2013)
5. What are the Qualities and Responsibilities of Sales Manager?
(Jan 2012)
6. What do you mean by sales organisation? (July 2012)
7. What is the challenges involved in sales Management?
8. Discuss in detail different types of sales organisation strutures.
9. What is the importance of sales Management?
Submission Date: 17
th
April, 20 17
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This post was last modified on 18 February 2020