This document provides an overview of key concepts in sales management and analytics including sales forecasting, recruitment, selection, and training. It discusses common sales management topics such as sales quotas, territories, and budgets. Various sales forecasting methods are described including qualitative and quantitative techniques. The roles and objectives of sales management are outlined in recruiting, selecting, and training a sales team. Factors affecting sales forecasting and elements of an effective forecast are also summarized.
3. Sales- Definition
- A sale is the pinnacle activity involved in selling
products or services in return for money or other
compensation. It is an act of completion of a
commercial activity.
- Sales is everything that you do to close the sale
and get a signed agreement or contract.
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4. Sales and Marketing
What's the Difference?
• Sales starts with seller & is
preoccupied all the time with the
needs of the seller
• Emphasizes on saleable surplus
available with the company
• Seeks to convert products in to
cash
• Views business as – goods
producing process
• Sales views the customer as the
last link in the business
• Marketing starts with the buyer and
focuses constantly on the needs of
the buyer
• Emphasizes on identification of
market opportunity
• Seeks to convert customer
needs in to products
• Views business as – a customer
satisfying process
• Marketing views the customer as the
very purpose of business
•
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5. Objectives of Sales Function.
• To achieve Sales Targets
• To achieve Market share targets
• To manage dealer network
• To organize sales training
• To handle customer complaints
• To manage Sales promotion campaigns
• To effectively cover market
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6. Basic Types of Sales Organisations
Sales organisations are generally classified into four
basic types:
• Line Organisation
• Line and staff organisation
• Functional organisation
• Horizontal organisation
We shall discuss main characteristics, advantages, and disadvantages
of each type of sales organisation
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7. Personal Selling
Personal selling occurs where an individual salesperson sells a product, service or solution to a
client. Salespeople match the benefits of their offering to the specific needs of a client.
Today, personal selling involves the development of longstanding client relationships. In
comparison to other marketing communications tools such as advertising, personal selling
tends to:
• Use fewer resources, pricing is often negotiated.
• Products tend to be fairly complex (e.g. financial services or new cars).
• There is some contact between buyer and seller after the sale so that an ongoing
relationship is built.
• Client/prospects need specific information.
• The purchase tends to involve large sums of money.
‘Everyone lives by selling something’ R.L. Stevenson
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8. Characteristics of personal selling
• Impact - sales representatives have a much greater chance of
engaging initial attention and responding to situations.
Precision - targeting and message precision.
Cultivation - sales force plays an important role in creating and
maintaining buyer – seller relationships.
Cost - personal selling is very labour intensive so comes at a
cost.
•
•
•
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12. Features of
Salesmanship
Salesmanship is an art Personal service
Art of attracting and persuading customers
Art of converting desire into necessity Buyer’s confidence
Consumer satisfaction
Establishment of permanent relations
Service for producer, distributor and consumer
Mutual benefit
Educative process
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13. Characteristics of Personal
Selling
It is the method of direct selling .
It involves oral communication between buyer and seller.
In personal selling, the seller wants to convince the buyers to buy
his product.
It involve the sale of goods and services personally. It is most
effective tool of increasing the sales.
It helps in providing many important information to the enterprise
regarding the market.
It is essential for the survival of business.
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14. Theories of Personal
Selling
1. AIDAS Theory Of Selling
2. Right Set Of Circumstances
3. Buying Formula Theory
4. Behavioral Equation
Theory
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15. What is Sales Forecasting?
•
customer demand for products or services at a specific company,
for a specific time horizon, and with certain underlying
assumptions
•Essential tool used for business planning, marketing, and general
management decision making.
•Sales forecasting can help you achieve sales goals.
•Sales forecasting can help drive sales revenue, improve efficiency,
increase customer retention and reduce costs.
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16. Factors affecting sales forecasting
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External Factors
•Relative state of the economy
•Direct and indirect competition
•Styles or fashions
•Consumer earnings
•Population changes
•Weather
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17. Factors affecting sales forecasting
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Internal Factors
•Labour problems
•Inventory shortages
•Working capital shortage
•Price changes
•Change in distribution method
•Production capability shortage
•New product lines
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18. Sales Forecasting Methods
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Qualitative Quantitative
Time Series Analysis
Market Test Method
Regression Analysis
Executive opinion method
Delphi Method
Sales force composite method
Survey of Buyer’s intentions
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20. Elements Of a Good Forecast
Timely Reliable Accurate
Meaningful Written Easy to
Use
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21. ❖ Performs Sales Management +HR Management !
❖ Recruits, Selects, Trains, Motivates, Leads, Controls and
Compensates Sales Teams
❖ Selection and Recruitment of efficient sales people is
always a process of building competitive advantage for an
organization
The Sales Manager
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23. Recruiting External
Applicants
• External applicants are candidates for the sales
positions that are generated from a variety of
sources that include:
•
•
•
•
•
•
•
Referrals
Advertisements
Private recruiters
Educational
institutes
Job/career fair
Trade shows
E-recruiting
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24. Selection
Procedures
• An objective selection process allows the sales
manager to access the qualification levels of
the applicant pool and gain essential
information that is needed to select the best
person for the job.
• The five stages of the selection process include:
1. Having the Candidate Complete an Application Form
2. Testing the Candidate
3. Personally Interviewing the Candidate
4. Verifying the Candidate's Background Information
5. Conducting a Physical Exam (If Necessary)
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25. Matrix for Evaluating the Success of Recruitment &
Selection Efforts
Sales
Applicant
Sources
Numbers
of
applicant
generate
d
Number
s of
applica
nt
hired
Percen
t
retaine
d
after 3
years
Cos
t
Percent with
above
average
performance
after two years
Internal
Applicant
Sources
Referrals
Advertisements
(Newspapers,
Magazine)
Private
Recruiters
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28. Knowledge of the
needs, methods
and the purpose
of the training is
crucial.
Training is a
good way to
increase
efficiency, and
reduce sales
cost.
Trained sales
people are
confident and
tend to stay longer
in a company.
Training and
development helps
the growth of a
business.
The company needs
to have motivated
staff who have up-to-
date skills in order to
remain competitive.
Well-trained staff are
an asset to the
business and help to
retain customers.
Conclusions
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