Introduction to Sales Management – The Sales Organization – Determining Sales Related Marketing Policies – Sales Functions and Policies – International Sales Management – Personal Selling. Sales Planning – Sales Budgets – Estimating Market Potential and Forecasting Sales – Sales Quotes – Sales & Cost Analysis, Sales Force Management: Hiring and Training Sales Personnel – Time and Territory Management –Compensating Sales Personnel – Motivating the Sales Force – Leading the Sales Force – Evaluating Sales Force Performance. Marketing Logistics - Distribution as Marketing Mix Element – Distribution Resource Planning – Marketing Channel Integration – Channel Management – Nature of Marketing Channels – Evaluating Channel Performance- Specialized Techniques in selling – Tele Marketing – Web Marketing Distribution Cost Analysis: Managing Channel Conflicts – Channel Information Systems – Wholesaling – Retailing – Ethical And Social Issues in Sales and Distribution Management.

1. DEPARTMENT OF BUSINESS ADMINISTRATION & RESEARCH
Shri Sant Gajanan Maharaj College of Engg., Shegaon
MBA Sem-III (Marketing)
Course: (MBA/3202/M)
Sales and Distribution Management

2. Introduction to
Sales Management:
Nature, Rewards, and
Responsibilities

3. WHAT IS SALES
MANAGEMENT?
Sales management is the attainment of sales force
goals in an effective and efficient manner through:
• Planning
• Staffing
• Training
• Leading
• Controlling organizational resources

4. FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions

5. PLANNING
The conscious, systemic process of making
decisions about goals and activities that an
individual, group, work unit, or organization will
pursue in the future and the use of resources
needed to attain them.

6. FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions

7. STAFFING
Activities undertaken to attract, develop, and
maintain effective sales personnel within an
organization.

8. FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions

9. SALES TRAINING
The effort put forth by an employer to provide the
salesperson job-related culture, skills, knowledge,
and attitudes that result in improved performance
in the selling environment.

10. FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions

11. LEADING
The ability to influence other people toward
the attainment of objectives.

12. FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions

13. CONTROLLING
Monitoring sales personnel’s activities,
determining whether the organization is on target
toward its goals, and making corrections as
necessary.

14. FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions

15. Sales Management is the attainment of
sales goals in an ethical, efficient, and
effective manner.
SALES PERFORMANCE

16. Three main ethical areas most
frequently faced by sales personnel:
• Salespeople
• Employers
• Customers

17. FIGURE 1.2 THE SYSTEMS VIEW OF AN ORGANIZATION
EXTERNAL ENVIRONMENT

18. Organization is a social system that is goal
directed and has a deliberated structure.
Social means being made up of two or more
people.
Deliberated structure means the tasks are divided,
and the responsibility for their performance is
assigned to organization members.
Goal directed means an organization is designed
to achieve some outcome.

19. Organizational effectiveness is the degree to which
the organization achieves a stated objective.
Organizational efficiency refers to the amount of
resources used to achieve an organizational goal.
MAJOR PARTS OF AN
ORGANIZATIONAL SYSTEM

20. T o p S a le s L e a d e r s
( S t r a t e g ic )
F ir s t - L in e
S a le s L e a d e r s
( O p e r a t io n a l)
M id d le S a le s
L e a d e r s
( T a c t ic a l)
FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY
Regional Sales Leader
CEO
President
Vice President of Marketing
National Sales Leader
Zone Sales Leader
District Sales Leader
Assistant District Sales Leader
Nonmanagerial Salespeople
Sales Trainee Salesperson Key Account

21. P la n n in g
3 5 %
S t a f f in g
1 0 %
T r a in -
in g
5 %
L e a d in g
3 0 %
C o n t r o llin g
2 0 %
P la n n in g
2 8 %
T r a in in g
1 0 %
L e a d in g
3 0 %
C o n t r o llin g
2 2 %
S t a f f in g
1 0 %
P la n n in g
1 5 %
T r a in in g
2 5 %
L e a d in g
2 5 %
C o n t r o l lin g
1 5 %
S t a f f in g
2 0 %
FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIES
BY ORGANIZATIONAL LEVEL
Top Managers
Middle Managers
First-Line Managers

22. Sales Trainee
Salesperson
Key Account Salesperson
District Sales Manager
Regional Sales Manager
Zone Sales Manager
National Sales Mgr.
Vice President of Marketing
President
FIGURE 1.5 A SALES PERSONNEL CAREER PATH

23. SALES MANAGEMENT SKILLS
1. CONCEPTUAL AND DECISION SKILLS
Refer to the cognitive ability to see the organization as a
whole and the relationships among its parts.
2. PEOPLE SKILLS
Involve the ability to work with and through other people and
to work effectively as a group member.
3. TECHNICAL SKILLS
The ability to perform a specialized task that involves a certain
method or process.

24. Effective Sales Executive
• The job of the sales executive is more action oriented
and less planning oriented
• Main concern of sales management is the “present” –
the “here and now”
• Their decisions not only affect the sales department,
but may have significant implications elsewhere in
the organization

25. Nature of Sales Management Positions
• Requirements of the sales executive’s job position vary from
company to company and from position to position in a
company
• It is possible to generalize about activities and responsibilities
of sales managers, district sales managers, product managers
and other sales or marketing executives
• Some companies have formulated concise statements of duties
associated with various positions, known as job or position
descriptions

26. Position Guide – Sales Manager
• Reports to the vice president of marketing
• The primary objective is to secure maximum volume of dollar
sales through the effective development and execution of sales
programs and sales policies for all products sold by division
• Duties and responsibilities:
– Sales Program
– Organization
– Sales Force Management
– Internal and External Relations
– Communications
– Control

27. • Performance is satisfactory when,
– Department’s Rupees or unit sales are equal to or exceed
the quantities budgeted
– Profit contribution of the sales department is in line with
plan
– Details of sales plan are in writing and are acceptable to
marketing management
– Turnover of sales personnel is maintained at a level
regarded as satisfactory by marketing management

28. Position Guide – District Sales Manager
• Reports to the sales manager
• The primary objective is to secure maximum dollar sales of
the company’s products in the sales district in accordance with
established sales policies and sales programs, within the limits
of sales budget
• Duties and Responsibilities:
– Supervision of Sales Personnel
– Control
– Administration
– Communications

29. • Performance is satisfactory when,
– District’s dollar and unit sales are equal to or exceed the
quantities budgeted
– District’s total expenses are no higher than the amounts
budgeted
– Profit contribution of the district office and warehouse and
stock facilities is in line with plan
– Turnover rate of district sales personnel is maintained at a
level regarded as satisfactory by the (general) sales
manager

30. Functions of sales Executive
• Basically has two sets of functions
- Operating
- Sales Force Management
- Handling relationships with personnel in other company
departments and with trade
- Communicating and coordinating with other marketing
executives
- Reporting to some superior executive

31. - Planning
- Setting personal-selling goals
- Developing sales program designed to achieve these
goals
- Formulating sales strategies and personal-selling
strategies
- Putting together plans for their implementation
These functions varies with
- The type of products
- The size of the company
- The type of supervisory organization

32. Qualities of Effective Sales Executive
He should have
• Ability to define the position’s exact functions and duties in relation
to the goals the company should expect to attain
• Ability to select and train capable subordinates and willingness to
delegate sufficient authority to enable them to carry out assigned
tasks with minimum supervision
• Ability to utilize time efficiently
• Ability to allocate sufficient time for thinking and planning
• Ability to exercise skilled leadership

33. Relations with Top Management
• Effective sales executives need to keep the top management
abreast of their progress as their personal goals are intertwined
with company’s goals
• They should not be dispensable to the company and should be
able to delegate tasks effectively
• They update the top management of all the latest activities
through periodic reports and presentations

34. Relations with Product management
• Product planning and formulation of product policies requires
numerous decisions
• Sales executives provide input for these decisions
• Their contact with the market through subordinates and sales
personnel provide them with feedback about product
performance and acceptance generally not available from other
sources

35. Relations with Promotion Management
• Sales executives play a very important role in promotional
activities as they are the one who actually implement them
• They must be involved in formulating policies as they are very
close to the customers
• The sales force must be kept updated about all the latest
promotional activities

36. Relations with Pricing Management
• Sales executives have much clearer ideas of the prices the
buyers are willing to pay, because of the close and continuing
contacts with the market
• Pricing policies need to be formulated by a committee
comprising of members from different departments
• Once the policy is established, its implementation is the
responsibility of the sales executive

37. Relations with Distribution Management
• Distribution policies are major determinants of the breadth and
complexity of sales department’s organization and functions
• It has an impact on the sales organization and its activities
• Sales executives play key roles in providing information
needed for their formulation

38. FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICAL
SKILLS TO SALES LEADER LEVEL
T o p S a le s L e a d e r s
M id d le S a le s L e a d e r s
F ir s t - L in e S a le s L e a d e r s
N o n m a n a g e r ia l S a le s p e o p le
C o n c e p t u a l a n d
D e c is io n S k ills
P e o p le S k ills T e c h n ic a l S k ills

39. PROBLEMS NEW MANAGERS EXPERIENCE
• Lack of preparation for the job.
• Expected to step into the job and
immediately function effectively.
• Often lacks an immediate peer group.

40. MAKING A SUCCESSFUL TRANSITION TO
MANAGEMENT
• Have a learning attitude – a
willingness to learn, change, adapt,
and seek help when needed.
• Having realistic expectations.
• Leave the old job behind.

41. Sales Organization

42. Sales Organization
Concepts
Specialization
The degree to which individuals perform some of the required
tasks to the exclusion of others. Individuals can become
experts on certain tasks, leading to better performance for the
entire organization.
Centralization
The degree two which important decisions and tasks
performed at higher levels in the management hierarchy.
Centralized structures place authority and responsibility at
higher management levels.

43. Sales Force Specialization
Continuum
Some specialization
of selling activities,
products, and/or
customers
All selling activities
and all products to
all customers
Generalists
Certain selling
activities for certain
products for certain
customers
Specialists

44. Flat Sales Organization
Span of Control
ManagementLevels
National
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
Span of Control vs.
Management Levels

45. Tall Sales Organization
National Sales
Manager
Span of Control
ManagementLevels
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
Regional Sales
Manager
Regional Sales
Manager
Span of Control vs. Management
Levels

46. National Sales Manager
Regional Sales Managers
District Sales Managers
Sales Training Manager
Sales Training Manager
Salespeople
Staff Position
Line Position
Line vs. Staff Positions

47. Organizational
Structure
Environmental
Characteristics
Task
Performance
Performance
Objective
Specialization
High Envir.
uncertainty Nonroutine Adaptiveness
Centralization
Low Envir.
Uncertainty Repetitive Effectiveness
Selling-Situation Factors and
Organizational Structure

48. Simple
Product
Offering
Complex
Range of
Products
Customer Needs Different
Customer Needs Similar
Market-
Driven
Specialization
Product/Market-
Driven
Specialization
Geography-
Driven
Specialization
Product-
Driven
Specialization
Customer and Product
Determinants
of Sales Force Specialization

49. Geographic Sales Organization
National Sales Manager
Zone Sales Managers (4) Zone Sales Managers (4)
District Sales Managers (20)
Salespeople (100) Salespeople (100)
District Sales Managers (20)
Eastern Region Sales Manager Western Region Sales Manager
Sales Training Manager

50. Product Sales Organization
National Sales Manager
Office Equipment Sales
Manager
Office Supplies Sales
Manager
District Sales Managers (10)
Salespeople (100) Salespeople (100)
District Sales Managers (10)

51. Market Sales Organization
National Sales Manager
Zone Sales Managers (4)
District Sales Managers (25)
Salespeople (150)
District Sales Managers (5)
Commercial Accounts
Sales Manager
Government Accounts
Sales Manager
Sales Training
Manager
Salespeople (50)

52. Functional Sales Organization
National Sales Manager
Field Sales Manager Telemarketing Sales Manager
Regional Sales Managers (4)
Salespeople (160)
Salespeople (40)
District Sales Managers (2)
District Sales Managers (16)

53. Large
Small
Complexity of Account
SizeofAccount
Large
Account
Simple Complex
Major
Account
Regular
Account
Complex
Account
Identifying Major Accounts

54. Develop Major Account Salesforce
Assign Major Accounts to
Sales Managers
Assign Major Accounts to Salespeople
along with Other Accounts
Major Accounts Options

55. Comparison of
Sales Organization Structures
Organizational
Structure
Advantages Disadvantages
Geographic
• Low Cost
• No geographic duplication
• No customer duplication
• Fewer management levels
• Limited specialization
• Lack of management
control over product or
customer emphasis
Product
• Salespeople become experts
in product attr. & applications
• Management control over
selling effort
• High cost
• Geographic duplication
• Customer duplication

56. Comparison of
Sales Organization Structures
Organizational
Structure Advantages Disadvantages
Market
• Salespeople develop
better understanding of
unique customer needs
• Management control over
selling allocated to different
markets
• High cost
• Geographic duplication
Functional • Efficiency in performing
selling activities
• Geographic duplication
• Customer duplication
• Need for coordination

57. Hybrid Sales Organization
Structure
National Sales Manager
Major Accounts
Sales Manager
Regular Accounts
Sales Manager
Office Equipment
Sales Manager
Office Supplies
Sales Manager
Field Sales
Manager
Telemarketing
Sales Manager
Commercial Accounts
Sales Manager
Government Accounts
Sales Manager
Western
Sales Manager
Eastern
Sales Manager

58. Sales-force Deployment
1. How much selling effort is needed to cover accounts and prospects
adequately so that sales and profit objectives will be achieved?
2. How many salespeople are required to provide the desired
amount of selling effort?
3. How should territories be designed to ensure proper coverage of
accounts and to provide each salesperson with a reasonable
opportunity for success?
Sales Force deployment decisions can be viewed as
providing answers to three interrelated questions.