EVOLUTION OF SALES MANAGEMENT

 Situation before industrial revolution in U.K. (1760

AD).
 Situations after industrial revolutions in U.K., and
U.S.A.
 Marketing function splits into sales and other
functions like marketing research, advertising,
physical distribution, and customer service.

1
 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.

2
 NATURE OF SALES
MANAGEMENT
It includes :
(1) Its integration with marketing management.
(2) Scope of sales management.
(3) Roles and skills of a modern sales management.

Its Integration with Marketing Management

Head-
Marketing

Manager- Manager – Manager – Manager – Manager –

Promotion Marketing Sales Market Customer
Research Logistics Service
 Scope of Sales Management
During early period, it was narrow :
namely, (i) recruiting, (ii) selecting (iii) training, (iv)
motivating and (v) supervising salespeople

Present period, it is broader.

It includes, in addition to above tasks, following:
(vi) forecasting sales, (vii) designing sales
territories, (viii) coordinating internally & externally,
(ix) participating in budgeting & strategic planning
processes.
 ROLES AND SKILLS OF A MODERN SALES
MANAGER
Some of the important roles / functions of a modern
sales manager are:
• Senior level sales manager is a member of the strategic
management team.
• Coordinate internally and externally.
• First level sales manager is a team leader, working with
and managing salespeople.
• Managing multiple sales / marketing channels.
• Using technologies (like CRM) to build superior buyer-
seller relationships.

5
SKILLS OF A SUCCESSFUL SALES MANAGER

 People skills include abilities to motivate, lead,

communicate, coordinate, develop team-oriented
relationships, mentor, and resolve conflicts.
 Managing skills consist of planning, organizing,
controlling and decision making.
 Technical skills include training, selling, negotiating,
problem-solving, and use of computers.

6
IMPORTANCE OF SALES MANAGEMENT

 The only function / department in a company that

generates revenue / income.
 The financial results of a firm largely depend on the
performance of the sales management
 Many salespeople are among the best paid people
in business.
 It is one of the fastest and surest routes to the top
management through many positions.
 Fresh graduates need knowledge of sales
management.
7
LEVELS OF SALES MANAGEMENT
POSITIONS
CEO /
President
V. P. Sales /
V. P.
Top-Level Sales
Marketing
Managers / Leaders
National Sales
Manager

Regional / Zonal / Divisional Middle-Level Sales Managers

Sales Managers

First-Level Sales Managers

District / Branch / Area Sales Managers

Sales Trainee / Sales Person / Sales

Representative
 NATURE OF PERSONAL SELLING.
IT INCLUDES:
(I) TRANSACTIONAL AND RELATIONSHIP SELLING.
(II) VARYING SALES POSITIONS.
(III) SALES AS A CAREER.

Transactional and Relationship Selling

* Transactional selling focuses on getting
an order or closing the sale.
* Relationship selling builds long-term
relationships with key customers.
 Varying Sales Responsibilities / Positions / Jobs
Sales Position
• Delivery salesperson
• Order taker salesperson.
Brief Description
• Delivery of products to business
customers or households.
• Also takes orders.
• Inside order taker.
•Telemarketing salesperson takes orders
over telephone.
• Outside order taker. Also performs
other tasks.
Examples
• Milk, newspapers to households
• Soft drinks, bread to retail stores.
• Behind a counter in a garment shop
• Pharmaceutical products’ orders from
nursing homes.
• Food, clothing products’ orders,
market information from retailers.

• Sales support salespeople • Provide information, build goodwill, • Medical reps. in pharmaceutical
• Missionary selling introduce new products industry.
• Technical selling • Technical information, assistance • Steel, Chemical industries

• Creative, Problem-solving, • Getting orders from existing and new • Automobiles, refrigerators, insurance
Consultative sellers. household consumers policies
• Getting orders from business • Software and business solutions.
customers, by solving their business
and technology problems
•Key account sales executive •Responsible for few important •OEM customer like Tata Motors for a
customers. tyre manufacturer.
 SALES AS A CAREER

 There are various sales positions

 There are several levels of sales management position.
 Companies develop attractive compensation plans for
salespeople.
 Exciting and challenging sales career- as it deals with people
whose needs/wants are ever- changing.
 Fastest route to the top management positions through sales
management.
SOME ASPECTS OF STRATEGIC
SALES MANAGEMENT
 Development of the strategic sales organization.
 The strategic role of the selling function.
 Choosing target customers and retaining them.
 The role of sales force and customer relationship
management strategy.
 Designing sales territories and sales force deployment.
 Long-term sales planning and forecasting.
 Strategic sales management plan should be based on the
strategic marketing plan which should be consistent with the
company’s strategic plan.
 Sales Planning Includes
SALES OBJECTIVES, STRATEGIES AND TACTICS

The main components of planning in a company are objectives,

strategies and tactics. Their relationship is shown below

Decide / Set Evolve Tactics /

Develop Strategies Action Plans
Objectives

E.G. A company wants to increase sales of electric motors by 15

percent, as one of the sales objectives. (see the next slide)

13
 ILLUSTRATING THE RELATIONSHIP BETWEEN SALES OBJECTIVES,
STRATEGIES AND TACTICS IN SALES PLANNING

Sales Goals / Marketing Sales and Distribution Tactics /

Objectives Strategy Strategies Action plans

 Increase  Enter  Identify the countries  Marketing / sales head to

sales export get relevant information
volume by markets  Decide distribution channels  Negotiate and sign
15 percent agreements in 3-5 months
with intermediaries

 Penetrate  Review and improve sales  Add channels and channel

existing force training, motivation partners.
domestic and compensation  Train salespeople in
markets  Use effective and efficient deficient areas.
channels.  Train field sales managers
in effective supervision.
 Link sales volume quotas
to the incentive scheme of
the compensation plan.
 EMERGING TRENDS IN SALES MANAGEMENT
 Global perspective.
 Revolution in technology.
 Customer relationship management (CRM) / Sales Force
Automation ( SFA )
 Sales force diversity.
 Team selling approach.
 Managing multi-channels marketing systems.
 Ethical and social issues.
 Sales professionalism.
 E-Selling.

15