Introduction to Sales Management

Description
Difference between sales and marketing, difference between selling and sales management, role of sales manager, sales management process, challenges in sales management.

SALES MANAGEMENT

SELLING & MARKETING
Starting Point

Focus

Means

Ends

Selling Concept

Factory

Factory

Selling & Promoting

Profit through Sales Volume

Marketing Concept

Market

Customer Needs

Coordinated Marketing

Profit through Cust. satisfaction

GURU SPEAK – THEODORE LEVITT
“Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash, marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.”
- Marketing Imagination ( 1986 )

JOEL EVANS & BARRY BERMAN
• Selling
– – – – – – – – – Sales Oriented Output ‘sold’ to customers One way process Short run goals Volume oriented Emphasis on single consumers Narrow view of consumer needs Informal planning & feedback Little adaptation to environment

• Marketing
– – – – – – – – – Consumer oriented Mktg Research determines output Two way process (interactive) Long term goals Profit oriented Emphasis on groups of consumers Broad views of consumer needs Integrated planning and feedback Appropriate adaptation to environment

CONTEXT OF CONVERSES
• • • • • • Right Customer Right Place Right Product / Quantity Right Time Right Interaction Right Fit with Firm Objectives

QUESTION # 2

What is the difference between selling and sales management ?

SELLING

Buyer – Seller Dyadic relationship

SALES MANAGEMENT
Managing the selling effort

THE SALES MANAGER - DP

What to sell ?

How to sell ?

How much to sell ?

Where to sell ?

Who will sell?

How to reward?

How much to spend ?

Product Decision

Channel Decision

Quota Decision

Territory Decision

Sales Force Decision

Compens ation Decision

Budget Decision

SALES MANAGER ROLES

• Planner • Supervisor • Recruiter • Trainer • Evaluator • Rewarder • Counselor • Motivator

SALES MANAGER – HIS TIME & ACTIVITIES
?Making calls with sales people ?Personal selling to own accounts ?Handling problem accounts ?Expediting customer orders ?Deciding on requests for special terms ?Recruiting, Selecting and Training sales people. ?Forecasting future manpower requirements ?Handling problem sales people ?Advising sales people on personal matters ?Planning & holding sales meetings ?Establishing performance standards ?Analyzing sales data & Forecasting of sales ?Communication of information to sales force ?Digesting information from management ?Summarizing sales information to management ?Advising management on price, products, deliver etc ?Review of coverage , territory, quota , competition etc ?Writing & Keeping records ?Managing Field Sales Force ?Analyzing selling expense data and preparing budgets ?Controlling Inventory & Depot operations S A L E S

37% 20% 20 % 18% 7%

PE RS ON NE L M K T N G
AD MN FI N

DOMAIN OF SALES

SALES
Personal Selling Sales Force Management

MARKETING
Product Price Place STP

Sales Promotions Advertising Publicity

SALES MANAGEMENT PROCESS
Define Role of Selling & Sales Management

Plan Sales Program & Develop Budget

Organize Sales Force Estimate Potentials & Forecast Sales Recruit & Select Sales Force Train, Compensate & Motivate Design Territories & Quota System Set Performance Standards Collect Data on Account History & Current Results Evaluate Performance Feedback on Performance

STRATEGIC MANAGEMENT PLANNING & SALES

Strategic Management Planning

Strategic Marketing Planning

Sales Force Strategy

Operating Budgets

•Mission •Goals •Strategies

•Situation Analysis •STP •Marketing Mix

•Market Access Strategy •Account Relationship Strategy

•Promotion •Selling Expenses

CHALLENGES

• • • • • • • •

Competition .. So What’s New ? Buyer Size Shorter PLC Buying Policies Managing People Complex Channels Fighting Redundancy Globalizaion ( Selling Coke to Arabs)



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