Sales Management

Session 3
-Organizational Strategy & Sales Role
-Sales Planning & Framework

Umer Usmani
Steps in Developing & Implementing Strategies
 Sales Planning & Operational
Framework

• Identify the components of sales planning.

• List the elements that are involved in
directing sales.
• Discuss the procedures used in evaluating
sales performance.
 Planning Sales

Before putting the sales sales planning the

process that involves
force to work, a business determining the goals and
must complete its sales timing of sales efforts

planning.
 Forecasting Sales

A company’s sales sales forecast an

estimate of sales for a
forecast is based on the given period, such as the
estimated market share the next quarter

company thinks it can

obtain.
Forecasting Sales
There are several methods for forecasting sales:

market analysis and industry information

surveys

data analysis

operational analysis

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Budgeting Sales
Three basic budgets are needed for sales activities:

$
sales budget

$
selling expense budget

$
administrative sales cost budget

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 Establishing Territories

A business that covers a sales territories

geographical areas in
wide area should establish which existing and
sales territories to ensure potential customers are
grouped
market coverage, reduce
selling costs, and improve
customer relations.
 Settling Sales Quotas

A sales quota can be used sales quota a

performance goal
to indicate strong and assigned to a
weak areas in the sales salesperson for a specific
period
operation, provide
incentives for the
workforce, and improve
effectiveness of
compensation plans.
 Directing Sales Operations

You must direct your sales activities by

providing:
motivation
incentives
a favorable environment
resources
leadership
 Compensating Your
Sales Staff
The following options are available as methods
of payment for salespeople:
straight salary
straight compensation
combination of salary and commission
 Compensating Your
Sales Staff
A salary ensures a salary regular wages an
employee receives from
regular, stable income for an employer
the employee.
 Compensating Your
Sales Staff
A commission plan has an commission a fee for
services rendered based
advantage in the incentive on a percentage of an
it provides for employees, amount sold; payment is
based on sales alone
but a disadvantage in the
difficulty in directing
commissioned
salespeople.
 Supervising Your
Sales Force
You can supervise your sales staff using these
techniques:
personal contact
sales reports
electronic communications
meetings
 Evaluating Sales Performance

The final step in managing the sales operation is

to evaluate sales performance.

Sales performance evaluation involves:

evaluating company-wide sales
evaluating the sales of individual salespeople
 Evaluating the Company’s Sales
Performance
To evaluate your company’s sales performance:

1. Compare your company’s sales volume with its

budgeted sales goals
2. Analyze your marketing costs to identify
unprofitable marketing efforts.
 Evaluating Individual Sales
Performance
There are five steps involved in evaluating sales
staff performance:
1. Establish guidelines.
2. Identify factors to be measured.
3. Set standards for performance.
4. Compare performance to standards.
5. Discuss results with salespeople.
 Compensating Your
Sales Staff
Some salespeople account sales call report an
account of sales
for their activities in a activities, including such
sales call report. items as number of calls
made, orders obtained,
and miles traveled
 Adjusting to Sales Environment
Changes
By using a SWOT
analysis, a company can
assess its current situation.
SWOT analysis a
strategic planning
technique that analyzes
a company’s internal
strengths and
weaknesses, and
opportunities and threats
in the external sales
environment
 Maintaining Morale

To maintain high morale, morale a state of an

individual psychological
a business should foster a well-being based on a
positive work climate. sense of confidence,
usefulness, and purpose
1. Identify the components of sales planning.

The components of sales planning are forecasting

sales, budgeting sales, establishing territories, and
setting sales quotas.
2. List the elements that are involved in
directing sales.

The elements involved in directing sales are motivating

salespeople, compensating the sales staff, handling
expenses and transportation, supervising the sales force,
adjusting to changes in the sales environment, and
maintaining morale.
3. Discuss the procedures used in evaluating
sales performance.

To evaluate a company’s sales performance, analyze sales

volume and marketing costs. To evaluate individual sales
performance, establish guidelines, identify factors to be
measured, set standards for performance, compare
performance to standards, and discus results with salespeople.