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Sales management

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Sales management

  2. 2. Evolution Of Sales Mgmt.• Situation before industrial revolution in U.K. (1760AD)• Situation after industrial revolutions in U.K., and U.S.A.• Marketing function splits into sales and other functions like market research, advertising, physical distribution
  3. 3. What is Sales Management?• One definition: “The management of the personal selling part of a company’s marketing function.”• Another definition: “The process of planning, directing, and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying, and motivating the personal sales force.
  4. 4. Nature of Sales Management• Its integration with marketing management Head- Marketing Manager- Manager – Manager – Manager – Manager – Promotion Market Sales Market Customer Research Logistics Service• Relationship Selling
  5. 5. Objectives of Sales management• Sales volume• Contribution to profits• Continuing growth
  6. 6. Other Objectives• To design a sales programme• To establish and manage a sales organization• To control the sales performance, sales activities and expenditure• To set the sale s goals, formulate the sales policies, and design the sales strategies.• To mange the sales force• To interact with other departments• To interact with the trade and customers
  7. 7. Functions of sales executive Basically, the functions of sales executives hasbeen divided into two:-• Operating functions• Planning functionsSales – cost of sales = gross margin.Gross margin – expenses =net profit
  8. 8. Operating functions• It includes: – Sales force management. – Handling relations with personnel(middlemen/ customers). – Communicating and coordinating with other marketing executives. – Reporting to superior executives.
  9. 9. Planning functions• It includes: – Sales programs • Setting personal selling goals • Formulating sales policies • Formulating selling strategies – Sales organisation and its control • Designing and shaping the organisation • For staffing • For developing the skills. • For providing leadership.
  10. 10. Relation with other executives• 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.• Sales & Marketing information: data is needed for analysis of sales problems, for determining sales potential. Raw data is collected by sales people.
  11. 11. Relation with other executives• Sales and service: contributes to strategy success.• Sales and distribution: minimizes stock out situation; improves inventory control; helps sales to focus on demand generation.• Sales & Production: the amount of demand is assessed by the data provided by salesmen.• Sales and R&D: the R&D is based highly on the changing needs, taste and preferences of people.• Sales &Finance: the higher is the sale, more is the revenue earned by the company.
  12. 12. Importance Of Sales Management• Sales maximization• Profit maximization• Growth and development• Strong planning• Formation of organization• Advise to top management• Optimum relationship
  13. 13. Functions of a Sales ManagerAdministrative functions Sales planning Sales administration Sales policy and strategies Sales forecasting Sales organization Coordination in advertising and sales promotion Communication Budgetary control Decision making Marketing research
  14. 14. Functions related to sale force management The sales force structure Selection of sales personnel Placement of sale personnel Training of sales personnel Remuneration of sales personnel Motivation of sales personnel Direction Control Internal and external relations Determination of territory size Fixing the sales quota Evaluation of performance
  15. 15. Qualities of a Sales Manager Physical qualities Sound health Cheerful Appearance Psychological qualities Quick action Confidence Coordination Tactful Initiative
  16. 16. Social qualities Social Courteous Good manner Co-operativeCharacter qualities Honesty and integrity Discipline Courage Determination Humanism
  17. 17. Sales Department Structure R & D Officer Sales Personnel Advertisement Sales Personnel Officer Sales Promotion Sales Sales Personnel OfficerManager Sales Officer Sales Personnel Credit Officer Sales Personnel General Officer Sales Personnel
  18. 18. Making Sales Management Effective• vision• market focus• clear guidance• a good team• spending time with the team• motivation• good communication• sales excellence• innovation• leadership
  19. 19. Thank You!