2. Module 1 Overview
• Meaning, Evolution, Importance, Per
sonal selling
• Emerging trends in Sales
Management
• Elementary study of sales
organizations
• Qualities & responsibilities of sales
manager
• Types of Sales Organizations
3. Meaning of sales Management
• According to the American Marketing
Association, Sales management is
“The planning, direction, and control of
personal selling, including recruiting,
selecting, equipping, assigning,
routing, supervising, paying and
motivating as these tasks apply to the
personal sales force”.
4. Evolution of Sales Management
Pheriwallas - the first sales people
Pack Peddlers – the shrewd,
unprincipled tricksters
Greeters and Drummers –
intermediary to buyer
Modern sales management
5. Importance of Sales Management
• Sales force is the primary contact point
• In most industrial markets, personal selling
comprises the majority of promotional
budget.
• Customer considers salesperson as the
company selling the product.
• Internet and web based platforms for
interaction with customers
6. Personal Selling
Prospecting,
Formulating prospect definition
Searching out potential customers
Qualifying and determining requirement
Relating and converting them.
Importance of Personal selling
It enhances customer’s confidence in the seller.
It promotes long-term business relations through personal
intimacy.
It provides a human touch to business organisation.
It helps facilitate the seller to understand each customer’s
needs and preferences more clearly.
7. Importance (Contd.)
It helps satisfy a customer by modifying the
product as per the customer’s choice and
preference.
Personal selling followed by personal service helps
to build long term relationship with the customer.
It is a powerful tool of convincing customer about
the product.
Through personal selling the time lag between
introducing a product through the media and
actually selling it is reduced.
It provides prospective customer with a better
understanding of the product and an interactive
opportunity to liaise with the sales personnel
8. Types of Personal Selling
Personal Selling
selling with unusual
Service selling Developmental selling
creativity
Salesperson of tangible
Inside order taker product
Back- door salesperson
Salesperson of intangible Salesperson engaged in
Delivery salesperson product multiple sales
Merchandising salesperson
Missionary
Technical salesperson
9. Types of Selling
• Industrial Selling
• Selling to business Users
• Institutional selling
• Retail Selling
• Selling to government
• Service Selling
10. Emerging trends in Sales
Management
• Relationship selling
• Global and ethical issues
• New selling methods
• Global perspective
• Revolution in technology
• Customer relationship management (CRM)
• Sales force diversity
• Team selling approach
• Managing multi-channels
• Ethical and social issues
• Sales professionalism
11. Sales Organization
• A sales organization is an organization of
individuals either working together for the
marketing of products and services
manufactured by an enterprise or for
products that are procured by the firm for
the purpose of reselling.
12. Purpose of Sales Organization
To permit the development of specialists
To assure that all necessary activities are
performed
To increase co-ordination and balance
To define authority
To economize on executive time
13. Factors affecting Sales Organization
• Product and Service Related Factors
• Organization – related Factors
• Marketing Mix-related Factors
• External Factors
17. Alternate Sales Org. For
Major Customers
• Creating a major account
management team
• Using existing sales managers
• Creating a separate division or sales
force
19. Size of Sales Force
Affordability Method
Workload Method
Breakdown Method
20. Qualities of a Sales Manager
Good communicator, catalyst and planner.
Skillful manipulator.
Amalgamator, a consolidator, and orchestrator
Successful mentor
Innovator and creator of new ideas and promotion.
Over achiever rising to the challenge of new
forecast each year.
Able to handle unanticipated difficulties and
events.
Opportunist and advisor.
Team mate, umpire and referee
21. Responsibilities
Sales planning and budgeting
Estimating demand and forecasting of sales
Determination of size and structure of sales
organisation.
Recruiting , selecting and training of sales force.
Setting sales quota.
Compensating, motivating and leading sales force.
Analysing sales volume , cost and profit.
Measuring and evaluating sales force performance.
Monitoring marketing environment
22. Methods of Sales Forecasting
Jury of Executive opinion
The Delphi Technique
Survey of Customer buying plans
Poll of Sales Force Opinion
Projection of Past sales
(i) Time Series Analysis – Trend Projections
(ii) Naïve Method
(iii) Graphic Method
(iv) Method of semi-averages
(v) Method of moving averages
(vi) Regression analysis