Sales & Retail Management

(MBA III Semester)

KMB MK01
Unit1: Introduction to Sales: Role of selling in marketing, Personal selling, Salesmanship & sales

manager, Types of sales personnel, Characteristics of a successful salesman, Theories of selling, Sales

management, Process of effective selling. UNIT 2: Types of sales organizations & structure,

Functions & responsibilities of sales person, filling sales positions, Recruitment, Selection, Training &

Development, Development & Conducting Sales training programme. UNIT 3: Sales force

motivation, Sales force compensation plans, incentives & contests, Sales forecasting, Sales budget,

Sales quota, Sales territory, Building sales reporting mechanism & monitoring, Sales force

productivity, Sales force appraisal. UNIT 4: Introduction to retailing: Growing Importance of

Retailing, Factors Influencing Retailing, Strategic Retail Planning Process, Retail Organization, Retail

Models and Theory of Retail Development, Modern retail formats in India, Retailing in rural India

\UNIT 5: Retail stores and operation management: Setting up Retail organization, Retail location

Research and Techniques, Trading Area Analysis, Store Layout, Objectives of Good store Design,

Controlling Costs and Responsibilities of Store Manager, Store Record and Accounting System,

Coding System, Logistic & Information system, Strategies, Retail Sales Techniques & Promotion,

CRM & Brand Management in retailing.

• Sales include “operations and activities involved in promoting
and selling goods or services.”

Selling Types
1. Online Selling (Amazon, Flipkart and many more)
2. Direct Selling

3. Door to Door Selling

4. Tele Selling
Examples: Insurance Companies, Online Shopping and Door to
Door Selling
• Marketing includes “the process or technique of promoting, selling, and

distributing a product or service.”

OBJECTIVES

1.Satisfaction to the customers

2.Increase in demand

3.Provide better quality products to the customers

4.Create good will for the organization

5.Generate profitable sales volume

Examples: Automobile Industries, Electronics Industry and many

More
 Difference between Selling and Marketing
Basis Selling Marketing
1. Emphasis Emphasis on Emphasis on
product consumer needs and
wants
2. Approach Company Company first
Manufactures the determines
product first. customers needs and
wants and then
decides out how to
deliver a product to
satisfy these wants
3. Orientation Management is Management is
sales volume profit oriented
oriented
Basis Selling Marketing
4. Planning Planning is short-run- Planning is long-run-
oriented in terms of oriented in today’s
today’s products and products and terms of
markets new products,
tomorrow’s markets
and future growth.
5. Need Priority Emphasis on staying Emphasis on
with existing innovation on every
technology and existing technology
reducing costs and reducing sphere,
on providing better
costs value to the
customer by adopting
a superior technology
6. Need Priority Stresses needs of seller Stresses needs and
wants of buyers
Basis Selling Marketing
7. Price Discrimination Cost determines Price Consumer determine
price, price determines
cost
8. Philosophy Views business as a Views business as
good producing process consumer producing
process satisfying
process
9. Work Delegation Different departments All departments of the
work as in a highly business integrated
separate water tight manner, the sole
compartments purpose being
generation of consumer
satisfaction
 Sales Management – Introduction
The word sales management is a combination of two words- sales
and management. Sales is the art of planning in the mind of
another a motive which will induce favorable action on the other
hand management is any common activity to achieve a per
determined goal. 
Sales management meant all marketing activities like advertising,
sales promotion, marketing research, physical distribution, pricing
& merchandising. “Sales management is the planning, direction &
control of selling of business unit including recruiting, selecting,
training, assigning, routing, supervising, & motivating as these
tasks apply to the personnel of sales force”.
 Definitions
• According to the American marketing association sales
management: “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”.
• According to E.F.L Breech: Sales Management is the
overall management of sales and it refers to only a
specialized application of the process of management as a
whole.
 Nature of Sales Management

1. Goal-Oriented: Similar to other management activities, sales

management also have a specific purpose and intended for the

achievement of specified goals or objectives.

2. Continuous Process: The sales manager needs to perform sales

management functions regularly, and this process is never-ending.

3. Systematic Approach: It is an organized way of handling the

sales function of the company where every problem has a defined

and proven solution.

4. Relationship Selling: The salespeople make efforts to build
a strong customer relationship to sell the products or services

effectively.

5. Different Sales or Job Position: It is the combined efforts of

the whole sales team, including salesperson, sales executive,

sales head, sales manager and after-sales service personnel.

6. Pervasive Function: It is a universally applicable concept

which has been adopted and tested by every kind of business

organizations.
 Objectives of Sales Management

1.Revenue Generation – Sales management is to generate revenue for the organization.

The sales department is solely responsible to bring in the money.

2.Increase Sales Volume – Through efficient sales management, the organization wishes

to increase the number of units sold. This will ensure that the production facilities do not

remain idle and are utilized to the fullest.

3.Sustained Profits – Sales management has improving the profits of the organization

through effective planning, coordination and control. Sales management strives to

increase sales and reducing costs, this ensures good profits for the organization.

4.Organization Growth – With the sustained and continuous sales management

techniques, the organization tends to gain market share and results in growth of the

organization.
5. Market Leadership – With increased sales volumes and profits, ‘sales

management’ enables an organization to become the market leader.

6.Converting Prospects to Customers – Getting prospects to become customers is

an art and a science, it requires good planning and sustained efforts. This is

accomplished through sales management.

7.Motivate the Sales Force – One of the core objectives of sales management is to

motivate the sales force. Selling is a very stressful task, achieving sales targets can

become very challenging. Therefore, the sales management task is to ensure that the

sales force is continuously motivated through proper incentives and reward systems.

8.Compliment Marketing Activities – Sales management’s task is to support the

marketing functions of the organization. Marketing and sales need to go hand in

hand to achieve the desired results.

 Sales Management Functions
1. Preparing the Sales Plan
2. Recruiting the right people to execute the sales plan
3. Training the people to build competency in achieving the targets
set & fulfilling the organization’s objectives.
4. Defining the sales territories
5. Specifying the sales quota to be achieved for each territory
6. Defining the remuneration and reward system for the sales force
7. Providing welfare and healthcare facilities to the sales force
8. Advertising and sales promotion
9. Marketing research
10. Selection and management of channels of distribution
11. After sales service, if necessary
12. Integration and coordination of all functions
Importance of Sales Management

1. Realizes Organizational Objectives: Sales management is to attain

the pre-defined organizational objectives which can be increasing
profitability, customer satisfaction, market acquisition, and so on.

2. Manages Sales Force: The sales team includes personnel

performing various sales-related tasks; the activities of the sales
force are hence monitored and regulated through sales management.

3. Better Planning: Planning is an essential function of sales

management; it includes the formulation of goals, strategies,
programmes and budget.
4. Sales Maximization: It also helps the management in setting sales
target, which are though higher than the previous goals but are
possibly attainable.

5. Builds Strong Relationship: The sales personnel emphasizes on

building up strong interpersonal relations with the customers, as
their primary motive. Since it ultimately drives the sales and profit
maximization.

6. Aids Top Management Decision Making: It comprises of

the comparison between the desired and actual result and
thus, supports the top-level management or directors to make
crucial decisions (such as business expansion and closure).
7. Improves Profitability: The most critical concerns of top-level
management is profit maximization, which is, therefore, passed
on as a primary objective of the sales management.
8. Develops Personnel: In the process of sales management, the
sales personnel is provided sufficient training, growth
opportunities and support to ensure their overall development.
9. Product Development: The sales team are in constant touch with
the clients or customers, which helps the management to know
about their preference and taste.
Process of Sales Management

1. Set the objectives for Sales Force: Sales management is helpful

to establish pre-defined organizational objectives which can be

increasing profitability, customer satisfaction, market

acquisition, and so on.

2. Formulate a Sales force Strategy: The sales force strategy

describing the structure and size of the sales force. Structure:

• (a) Territorial Sales Force Structure:

• (b) Product Sales Force Structure:

• Sales Force Size: It denotes the number of employees.

3. Recruit Sales Personnel: The Sales force organization should
be superior quality since it is responsible for building the image
of the firm in the market. Sales Manager prefer to recruit sales
personnel strategically, knowledgeable & interpersonal
abilities.
4. Train the Sales Force: Sales Training teaches the sales force to
perform their job and guides them in developing various skills.
• Determining the needs of training
• Identifying needs of individual salesman
• Deciding about the nature and type of training required
• Content of training
• Change in the methods of training
• Timing the training
5. Developing Motivation and Compensation Plan for the Sales force:

compensation as the payment of wages and salaries including

incentive, bonus & benefits to employees in exchange of work. Sales

compensation plan (SCP) is, however, integrated to the motivational

aspects. Any compensation plan has to provide a fair living wage,

should be related to performance and should reward the efficiency. 

6. Evaluate the Performance: Regular evaluation of sales people helps

the management in identifying people who are good or who are bad.

Those who are good and efficient must be awarded for their task. Bad

ones must be motivated and trained to improve and if after all efforts

they do not improve then punitive measures must be adopted.

 PERSONAL SELLING
• Meaning: Personal selling is a different form of promotion,
involving two way face-to-face communications between the
salesmen and the prospect. Basically the essence of personal
selling is the interpretation of products and services benefits and
features to the buyer and persuading the buyer to buy these
products and services.
• Example: Personal selling can happen in a shop, face to face or
by telephone what else online. In this point, clients need
salesperson’s special information's.
Definitions
• According to American Marketing Association, “Personal
selling is the oral presentation in a conversation with one or more
prospective purchasers for the purpose of making sale.
• According to Cundiff and Still Personal selling is basically a
method of communication. It involves not only individual but
social behaviour each of the person also in face contrast
salesman and prospect influences the other”.
Features of Personal Selling

1. It is a Part of promotion mix: personal selling is part of

promotion mix, or the communication mix in the company’s
marketing program. Other elements being sales promotion,
advertising, public relations etc.

2. It is a Two-Way Communication: It is the best tool for two-

way communication. Salesman can provide necessary
information to customer about company’s offer, and also can
collect information from customer. The ultimate aim is to
persuade the customer.
3. It involves presentation & Persuasion: Salesman through his

knowledge tries to present his product to the prospective buyer

and tries to persuade the prospective buyer with the help of

various skills and techniques.

4. Flexible: Personal selling is more flexible than other promotional

tools. Salespersons see their customer’s reaction to a particular

sales approach & make adjustment according to the situation.

5. Creative tool: Personal selling is creative in nature. The

salesperson tries to create needs. Make the customer aware of

hose needs and try to persuade him to buy the product.

6. Development of long-term Relationship: Personal selling
results in the development of personal relationship between the
sales person and the possible buyer. Such a relationship has an
important place in sales.
7. Quick solution of Queries: The prospective buyer can make
inquiries regarding the product. Salesman answers these queries
quickly and removes any doubts in the mind of the buyer.
8. Customer Confidence: By systematic sales presentation, a
capable salesman can remove all doubts, quarries, &
misunderstandings, and can win customer’s confidence. It
increases customers’ faith in company & its offers.
Advantages of personal selling:
1. Two-Way Communication: It is the best tool for two-way
communication. Salesman can provide necessary information to
customer about company’s offer, and also can collect information
from customer. Customer can actively involve with salesman to
solve his doubts and objections.
2. Personal Attention: Advertising and publicity are among mass
communication tools. They do not cater individual needs.
Personal selling focuses on personal problems of customers. It is
comparatively more effective and result-oriented.
3. Demonstration: Except television advertisements, demonstration is
not possible. However, television demonstration is much limited.
Salesman can provide a detail demonstration and can supervise when
customer is making the actual use of products.
4. Complementary to other Promotional Tools: Personal selling can
support advertising, sales promotion, and publicity. It removes the
drawbacks of advertising and sales promotion. Advertising increases
awareness while personal selling reinforces the advertising message.
Similarly, it make more effective by personal guidance or conviction.
5. Flexibility: Sales talks and presentation can be adjusted according to
situation to suit individual nature, motives, and problems.
6. Immediate Feedback: This is the only market promotion
technique that provides an immediate feedback. At the end of
every call/visit, a salesman can easily judge whether the
customer is interested or indented to buy.
7. Customer Confidence: By sales presentation, a salesman can
remove all doubts, & misunderstandings, & win customer’s
confidence. It increases customers’ faith in company & its
offers.
8. Improving Image: Salesmanship can remove bad image or
misunderstanding by highlighting company’s achievements. The
detailed explanation about company and its products removes all
doubts & misunderstandings.
Disadvantage
1. Management Conflict: Unluckily, there arise situations in even
the best companies where sales staff and marketing staff know they
work for the same company and for the same goals. The marketing
staff might not be able to understand the problems faced by the
sales staff, or the salespeople might be able to understand why
marketing people do things the way they do.
2. Ethical Problems: There is a lack of complete control of manager
over the messages the salespeople communicate and due to income
and advancement directly tied to sales. They may say and do things
they know are not entirely ethical or in the best interest of the firm
in order to get a sale.
3. High Cost: When cost per sales call continues to climb, the
marketer finds mass communications a more cost-effective .
4. Poor Reach: Unlike other elements personal selling fails to
reach as many members of the target audience. Even if money
were no object, the sales force has only so many hours and so
many people it can reach in a given time.
5. Inconsistent Messages: The message to be communicated is
designed by marketing staff with a particular communications.
Once this message has been determined, it is communicated to
all receivers. Hence, the marketing staffs are at the mercy of the
sales force with respect to what exactly is communicated.