Description
functions of the sales and sales promotion department. It then lists the MIS requirements for sales division. It also explains the data required for generating an MIS for sales division.
MIS for Sales
MIS for Sales 2012 Contents
Organization of the Sales Department ..................................................................................... 3 General sales policies ............................................................................................................. 3 Processes and Functions of Sales Department ...................................................................... 3 Functions of Sales Management Department.................................................................... 3 Functions of Sales Promotion Department ........................................................................ 4 MIS Requirements for Sales Division........................................................................................ 5 Data Required for generating an MIS for Sales Division ......................................................... 5 Sources of Data.......................................................................................................................... 5
MIS for Sales 2012
Organization of the Sales Department
Since the ultimate purpose of the company is that of sales, the sales department is rightly recognized as one of the major departments of the business. The organization of the sales department will depend, of course, upon the size of the company and the nature of the business. The principles underlying its organization remain much the same, however. The nature of the organization depends somewhat upon whether the salesmen travel out of the home office or from divisional headquarters or branches. In the latter case there will be a general sales manager at headquarters who exercises supervision over the branch sales managers. And along with the changes in the organization of the sales department will change the MIS requirements for the same. General sales policies Every concern which produces something to be marketed must determine upon certain sales policies. The salesman must make himself thoroughly familiar with these. Chief among them are :
?
? ?
The selection of channels through which the goods are to be distributed—shall they go through jobbers, through retailers, a combination of those, or possibly direct to the consumer? The fixing of prices, including a consideration of standardized prices, quantity prices, price maintenance, price control and competitive prices. What shall be the terms of sale going into time credits, trade discounts, cash discounts, and exclusive sales?
In theory, at least, sales policies are determined by the board of directors or by the chief executives. The relation of the sales department to general sales policies is simply that of execution. However, this sharp line of demarcation is not always observed. Processes and Functions of Sales Department The sales department in large organisations generally is split into two areas.
1. 2.
Sales Management Dept. Sales Promotion Dept.
The distinction between sales promotion and sales management is well indicated by the terms. Sales management consists largely of managing the salesmen. That is, directing and controlling the details of their sales activities. Sales promotion is chiefly concerned with devising plans for stimulating sales and methods for putting these plans into operation. Management is mostly occupied with people; promotion with plans and methods.
Functions of Sales Management Department
The chief functions of Sales Management Department are :
MIS for Sales 2012
? ? ?
? ? ?
?
?
? ?
Recruiting and employing salesmen and fixing their compensation and respective territories. Supervising and directing the sales activities of the men out in the field, sending them letters and providing helpful information. Preparing and furnishing equipment for salesmen in the way of samples, sample cases, price lists, kits, portfolios, or whatever else may be necessary, depending on the nature of the business and the product or service sold. Supervising and checking the expense accounts, route lists, detailed reports and daily letters of the salesmen. Determining sales quotas, providing bonuses and prizes, conducting sales contests and special sales campaigns. Preparing, or directing the preparation of, sales manuals, or salesmen's handbooks, giving detailed information about the company, the products, and the sales principles and methods involved in selling. Cooperating with the advertising department by helping the salesmen utilize and sell the company's advertising and aiding them to assist customers to make use of advertising helps, and by obtaining reports from the field concerning the reaction to the company's advertising and that of competitors. Cooperating with the production department in the matter of qualities, quantities, containers, packages, sizes and seasonal goods, and reporting their reaction on dealers and consumers. Making investigations of the products or offering to discover new uses and new appeals to dealer or consumer. Conducting, or arranging for, special market surveys and analyses of territories with a view to discovering new markets for the goods or new methods of developing old markets.
Functions of Sales Promotion Department
The functions of sales promotion considered as a separate department of a business are:
?
?
?
Prospecting territories by investigating and preparing reports upon selected cities, counties, states, or regions, giving the physical layout, transportation facilities, financial resources, population and general market possibilities. Prospecting individual buyers or logical customers by investigating and classifying them according to needs, occupations, fitness, financial standing, purchasing power, buying habits and locations. Making specific market surveys and analyses, securing detailed and authoritative information regarding the quantities of certain classes of goods sold in given localities, the satisfaction given and sales problems involved, the number of dealers, their advertising and selling methods, and the probable capacity of that market to absorb more goods. Statistical reports, charts and graphs of these surveys are prepared and used as a basis for organizing or reorganizing sales forces, adjusting territories, fixing sales quotas, and finding and developing new markets for the goods.
MIS for Sales 2012
MIS Requirements for Sales Division
An MIS system addresses the needs of sales functions in various areas. Broadly covering the four sales channels: direct sales, telesales, channel sales, and e-selling, the requirement of MIS are in the following functions : ? ? Sales planning and forecasting to plan and forecast revenues and product quantities Organizational and territory management to enable sales managers to define territories based on various criteria, so they can assign sales reps and identify prospects for each territory Account and contact management to capture, monitor, store, and track all critical information about customers, prospects, and partners Activity management to schedule and manage various tasks assigned to sales professionals Opportunity management to manage sales projects from the very start and track their progress to the very end Quotation and order management to configure, price, and create quotes for customers, as well as create sales orders, check product availability, and track order fulfillment Contract management to help develop and revise customized contracts to generate and manage long-term agreements Incentives and commissions management to develop, implement, and manage compensation plans easily and effectively Travel and expense management to enable field sales personnel to record, review, and update travel information, enter receipts, and maintain time sheets Sales analytics to determine the financial status and overall effectiveness of the sales organization, so managers can recognize and address trends proactively Judge the effectiveness of employees based on the targets met by them
? ? ? ? ? ? ? ? ?
Data Required for generating an MIS for Sales Division
The various data variables required and the relationship are shown as follows:
Sources of Data
No functional division in an organisation can work in isolation and are dependent upon each other for a variety of data. For e.g. the prices of products are set by the marketing division along with the operations and finance division as well. The recruitment of sales people is done in collaboration with the HR department etc. Hence the source of the data fields
MIS for Sales 2012
required to generate the MIS for sales division are all the functional divisions of the organisation i.e. Finance, Marketing, HR, Operations, Sales etc.
doc_630874740.pdf
functions of the sales and sales promotion department. It then lists the MIS requirements for sales division. It also explains the data required for generating an MIS for sales division.
MIS for Sales
MIS for Sales 2012 Contents
Organization of the Sales Department ..................................................................................... 3 General sales policies ............................................................................................................. 3 Processes and Functions of Sales Department ...................................................................... 3 Functions of Sales Management Department.................................................................... 3 Functions of Sales Promotion Department ........................................................................ 4 MIS Requirements for Sales Division........................................................................................ 5 Data Required for generating an MIS for Sales Division ......................................................... 5 Sources of Data.......................................................................................................................... 5
MIS for Sales 2012
Organization of the Sales Department
Since the ultimate purpose of the company is that of sales, the sales department is rightly recognized as one of the major departments of the business. The organization of the sales department will depend, of course, upon the size of the company and the nature of the business. The principles underlying its organization remain much the same, however. The nature of the organization depends somewhat upon whether the salesmen travel out of the home office or from divisional headquarters or branches. In the latter case there will be a general sales manager at headquarters who exercises supervision over the branch sales managers. And along with the changes in the organization of the sales department will change the MIS requirements for the same. General sales policies Every concern which produces something to be marketed must determine upon certain sales policies. The salesman must make himself thoroughly familiar with these. Chief among them are :
?
? ?
The selection of channels through which the goods are to be distributed—shall they go through jobbers, through retailers, a combination of those, or possibly direct to the consumer? The fixing of prices, including a consideration of standardized prices, quantity prices, price maintenance, price control and competitive prices. What shall be the terms of sale going into time credits, trade discounts, cash discounts, and exclusive sales?
In theory, at least, sales policies are determined by the board of directors or by the chief executives. The relation of the sales department to general sales policies is simply that of execution. However, this sharp line of demarcation is not always observed. Processes and Functions of Sales Department The sales department in large organisations generally is split into two areas.
1. 2.
Sales Management Dept. Sales Promotion Dept.
The distinction between sales promotion and sales management is well indicated by the terms. Sales management consists largely of managing the salesmen. That is, directing and controlling the details of their sales activities. Sales promotion is chiefly concerned with devising plans for stimulating sales and methods for putting these plans into operation. Management is mostly occupied with people; promotion with plans and methods.
Functions of Sales Management Department
The chief functions of Sales Management Department are :
MIS for Sales 2012
? ? ?
? ? ?
?
?
? ?
Recruiting and employing salesmen and fixing their compensation and respective territories. Supervising and directing the sales activities of the men out in the field, sending them letters and providing helpful information. Preparing and furnishing equipment for salesmen in the way of samples, sample cases, price lists, kits, portfolios, or whatever else may be necessary, depending on the nature of the business and the product or service sold. Supervising and checking the expense accounts, route lists, detailed reports and daily letters of the salesmen. Determining sales quotas, providing bonuses and prizes, conducting sales contests and special sales campaigns. Preparing, or directing the preparation of, sales manuals, or salesmen's handbooks, giving detailed information about the company, the products, and the sales principles and methods involved in selling. Cooperating with the advertising department by helping the salesmen utilize and sell the company's advertising and aiding them to assist customers to make use of advertising helps, and by obtaining reports from the field concerning the reaction to the company's advertising and that of competitors. Cooperating with the production department in the matter of qualities, quantities, containers, packages, sizes and seasonal goods, and reporting their reaction on dealers and consumers. Making investigations of the products or offering to discover new uses and new appeals to dealer or consumer. Conducting, or arranging for, special market surveys and analyses of territories with a view to discovering new markets for the goods or new methods of developing old markets.
Functions of Sales Promotion Department
The functions of sales promotion considered as a separate department of a business are:
?
?
?
Prospecting territories by investigating and preparing reports upon selected cities, counties, states, or regions, giving the physical layout, transportation facilities, financial resources, population and general market possibilities. Prospecting individual buyers or logical customers by investigating and classifying them according to needs, occupations, fitness, financial standing, purchasing power, buying habits and locations. Making specific market surveys and analyses, securing detailed and authoritative information regarding the quantities of certain classes of goods sold in given localities, the satisfaction given and sales problems involved, the number of dealers, their advertising and selling methods, and the probable capacity of that market to absorb more goods. Statistical reports, charts and graphs of these surveys are prepared and used as a basis for organizing or reorganizing sales forces, adjusting territories, fixing sales quotas, and finding and developing new markets for the goods.
MIS for Sales 2012
MIS Requirements for Sales Division
An MIS system addresses the needs of sales functions in various areas. Broadly covering the four sales channels: direct sales, telesales, channel sales, and e-selling, the requirement of MIS are in the following functions : ? ? Sales planning and forecasting to plan and forecast revenues and product quantities Organizational and territory management to enable sales managers to define territories based on various criteria, so they can assign sales reps and identify prospects for each territory Account and contact management to capture, monitor, store, and track all critical information about customers, prospects, and partners Activity management to schedule and manage various tasks assigned to sales professionals Opportunity management to manage sales projects from the very start and track their progress to the very end Quotation and order management to configure, price, and create quotes for customers, as well as create sales orders, check product availability, and track order fulfillment Contract management to help develop and revise customized contracts to generate and manage long-term agreements Incentives and commissions management to develop, implement, and manage compensation plans easily and effectively Travel and expense management to enable field sales personnel to record, review, and update travel information, enter receipts, and maintain time sheets Sales analytics to determine the financial status and overall effectiveness of the sales organization, so managers can recognize and address trends proactively Judge the effectiveness of employees based on the targets met by them
? ? ? ? ? ? ? ? ?
Data Required for generating an MIS for Sales Division
The various data variables required and the relationship are shown as follows:
Sources of Data
No functional division in an organisation can work in isolation and are dependent upon each other for a variety of data. For e.g. the prices of products are set by the marketing division along with the operations and finance division as well. The recruitment of sales people is done in collaboration with the HR department etc. Hence the source of the data fields
MIS for Sales 2012
required to generate the MIS for sales division are all the functional divisions of the organisation i.e. Finance, Marketing, HR, Operations, Sales etc.
doc_630874740.pdf