2. Evolution of Sales Management
• Before Industrial revolution, small scale
manufacturers influenced the economy.
• After, 1760 AD, large scale manufacturers
started dominating.
• Need to expand the market
• Separate functional departments like
manufacturing, finance and sales were
established.
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3. Evolution of Sales Management
• Active involvement of distribution channels
(Wholesalers & retailers)
• Complex marketing function
• Marketing function was split in to Sales fn. &
support fn. (promotion, research, logistics,
etc.)
• Sales department generates revenue
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4. Marketing Organization Structure
Head -
Marketing
Manager - Sales
Manager -
Promotion
Manager –
Market Research
Manager -
Logistics
Manager –
Customer
Service
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5. Sales Management
According to American Marketing Association
(AMA),
“Sales Management means 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”.
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6. Nature of Sales Management
i. Integration with Marketing Management
ii. Relationship Selling
iii. Varying sales responsibilities
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7. i. Integration with Marketing
Management
Sales management is a part of marketing
management
• Field sales team: In territories, contacting
existing and prospective customers
• Headquarter team: Performs support and
service functions to assist sales people.
(Promotion, Market research, Logistics,
Customer service and coordination)
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8. ii. Relationship Selling
Transactional
Value Added
Collaborative
• Relationship is an exchange
– Obtaining & offering
• Creation of customer loyalty
• Customers classified as
A/B/C as per sales & profit
potential
• Lower costs and add value
• Satisfying current needs and
understanding future needs
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9. Importance of Sales Management
1. Most exciting
2. Highly financially rewarding
3. Challenging careers
4. Fastest & surest route to top management
5. Only function to generate revenue
6. Directly impacts the bottom line or net profit
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10. Roles of a Sales Manager
1. Strategic role in the company with key inputs – long
term strategic plans, forecasting, sales force
management, evolving strategies, controlling budget.
2. Member of corporate team to ensure organizational
objectives – customer satisfaction, sales growth &
market share
3. Team leader to achieve sales goals & profits
4. Managing multiple sales channels – personal selling,
electronic and telemarketing
5. Latest CRM technologies
6. Continually understand changes in environment and
update strategies
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11. Skills of Sales Manager
1. People Skills – Motivate, lead, communicate
and coordinate effectively with team building
2. Managing Skills – Administrative skills like –
planning, organizing, controlling and decision
making
3. Technical skills – Training, selling, negotiating,
problem-solving and CRM skills
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12. Sales Management positions
Strategic
/ Top
Tactical /
Middle
Operational /
First
1. Strategic: [President; V.P;
National sales head] – Long
term sales planning,
environment scanning,
strategy formulation, control
performance
2. Tactical: [Regional sales
head; Zonal sales manager] –
Manage regions, implement
strategies
3. Operational: [Branch / Area
sales managers] – Achieve
sales goals, supervising sales
force, implement rules
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13. Sales Objectives, Strategies & Tactics
Decide
Objectives
Develop
Strategies
Evolve
Tactics
• Objectives: Statement
of intent, quantified to
measurable targets w.r.t
time periods
• Strategies: Ways of
achieving objectives
• Tactics: Action plans or
activities to be carried
out to implement
strategies.
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15. Emerging trends in Sales Management
1. Global perspective
2. Revolution in technology
3. Customer Relationship Management (CRM)
4. Sales force diversity
5. Team selling approach
6. Managing multi channels
7. Ethical & social issues
8. E-selling
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