Chapter 1 Sales & Distribution

CHAPTER 1
INTRODUCTION TO SALES
MANAGEMENT
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Chapter - 1
Learning Objectives
LO1 : Understand evolution and definition of sales

management.
LO2 : Explain the nature and importance of sales
management.
LO3 : Describe the levels of sales management
positions.
LO4 : Discuss the nature of personal selling.
LO5 : Construct various aspects of strategic sales
management and sales planning.
LO6 : Identify emerging trends in sales management.
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Chapter - 1
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.
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Chapter - 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.
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Chapter - 1
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
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Chapter - 1
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.
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Chapter - 1
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.
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Chapter - 1
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.
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Chapter - 1
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.
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Chapter - 1
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
District / Branch / Area Sales Managers
Managers
Sales Trainee / Sales Person / Sales

Representative
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Chapter - 1
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.
Chapter - 1
Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.
• Order taker salesperson. • Inside order taker. • Behind a counter in a garment shop
•Telemarketing salesperson takes orders • Pharmaceutical products’ orders from
over telephone. nursing homes.
• Outside order taker. Also performs • Food, clothing products’ orders,
other tasks. 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.
Chapter - 1
Sales as a Career
• There are various sales positions – as seen in slide no.12

• There are several levels of sales management positions - as
seen in slide no.10
• 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 Chapter - 1
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.
Chapter - 1
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)
Chapter - 1
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.
Chapter - 1
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.
18
Chapter - 1
End of Notes – Chapter 1

Chapter 1 Sales & Distribution

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Chapter 1 Sales & Distribution

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CHAPTER 1

LO1 : Understand evolution and definition of sales

Evolution of Sales Management

• Situation before industrial revolution in U.K.

What is Sales Management?

• One definition: The management of the

Nature of Sales Management

Its Integration with Marketing Management

Manager- Manager – Manager – Manager – Manager –

Scope of Sales Management

Present period, it is broader.

Skills of a Successful Sales Manager

• People skills include abilities to motivate, lead,

Importance of Sales Management

• The only function / department in a company

Levels of Sales Management Positions

Regional / Zonal / Divisional Middle-Level Sales Managers

Sales Trainee / Sales Person / Sales

Nature of Personal Selling.

Transactional and Relationship Selling

• There are various sales positions – as seen in slide no.12

Sales Planning Includes

The main components of planning in a company are objectives,

Decide / Set Evolve Tactics /

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

Sales Goals / Marketing Sales and Distribution Tactics /

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

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

Emerging Trends in Sales Management

End of Notes – Chapter 1

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