Description
To understand evolution, nature and importance of sales management, To know role and skills of modern sales managers
Sales and Distribution
Management
SALES MANAGEMENT
The only business function that
generates revenue.
LEARNING OBJECTIVES
?To understand evolution, nature and
importance of sales management
?To know role and skills of modern sales
managers
?To understand types of sales managers
?To learn objectives, strategies and tactics of
sales management
?To know emerging trends in sales
management
?To understand linkage between sales and
distribution management
EVOLUTION, NATURE AND IMPORTANCE OF
SALES MANAGEMENT
Evolution of Sales Management
?Situation before industrial revolution in U.K.
(1760AD)
?Situation after industrial revolutions in U.K., and
U.S.A.
?Marketing function splits into sales and other
functions like market research, advertising,
physical distribution
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.
NATURE OF SALES MANAGEMENT
? Its integration with marketing management
• Relationship Selling
Transactional
Relationship /
Selling
Value – added
Relationship /
Selling
Collaborative /
Partnering
Relationship /
Selling
Head-
Marketing
Manager –
Customer
Service
Manager –
Market
Logistics
Manager –
Sales
Manager –
Market
Research
Manager-
Promotion
RELATIONSHIP SELLING
? Salespeople concentrate their team selling efforts
on building trust and service on a few carefully
selected customers over a long period with a aim of
becoming a preferred or sole supplier
? Transactional Relationship / Selling:- one type of
relationship marketing in which salespeople make one-
time sales to price-oriented customers ,who are not
contacted again
? Value – added Relationship / Selling:- understanding
current and future needs of customers and meeting those
needs better than competitors with value – added
solution to their problems
? Collaborative relationship :- a type of relationship
marketing in which a selling organization works
continuously with its large customers to improve the
customer performance in terms of operations , sales and
profit
? Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business
customers or households.
• Also takes orders.
• Milk, newspapers to households
• Soft drinks, bread to retail stores.
• Order taker (Response selling) • Inside order taker
• Telemarketing salesperson takes
orders over telephone
• Outside order taker. Also
performs other tasks
• Pharma products’ orders from
nursing homes.
• Food, clothing products’ orders
from retailers
• Sales support
• Missionary selling
• Technical selling
• Provide information, build
goodwill, introduce new products
• Technical information, assistance
• Medical reps. in pharma industry
• Steel, Chemical industries
• Order-getter (Creative, Problem-
solving, Consultative selling)
• Getting orders from existing and
new household consumers
• Getting orders from business
customers, by solving their
business and technology problems
• Automobiles, refrigerators,
insurance policies
• Software and business solutions
IMPORTANCE OF PERSONAL SELLING AND
SALES MANAGEMENT
?The only function / department in a
company that generates revenue / income
?The financial results of a firm depend on the
performance of the sales department /
management
?Many salespeople are among the best paid
people in business
?It is one of the fastest and surest routes to
the top management
ROLES AND SKILLS OF A MODERN SALES
MANAGER
Some of the important roles of the modern sales
manager are:
• A member of the strategic management team
• A member of the corporate team to achieve objectives
• A team leader, working with salespeople
• Managing multiple sales / marketing channels
• Using latest technologies (like CRM) to build superior
buyer-seller relationships
• Continually updating information on changes in
marketing environment
SKILLS OF A SUCCESSFUL SALES
MANAGER
?People skills include abilities to motivate,
lead, communicate, coordinate, team-
oriented relationship, and mentoring
?Managing skills consist of planning,
organizing, controlling and decision making
?Technical skills include training, selling,
negotiating, problem-solving, and use of
computers
TYPES OF SALES MANAGERS / LEVELS OF
SALES MANAGEMENT POSITIONS
CEO /
President
V. P. Sales /
V. P. Marketing
National Sales Manager
Regional / Zonal / Divisional
Sales Managers
District / Branch / Area Sales Managers
Sales Trainee / Sales Person / Sales Representative
First / Lower Level Sales Managers
Middle-Level Sales Managers
Top-Level Sales Managers /
Leaders
SALES TERRITORIES
?Definition : A sales territory consists of
existing and potential customers
assigned to a sales person. The territory
may or may not have geographic
boundaries.
REASONS FOR TERRITORIES
?Increase / improve customer coverage
?Control selling expenses
?Effective evaluation of salesman?s
performance.
? Improve customer relations
TERRITORY DESIGN
? Main procedural steps:
1. Selection of a basic geographical control unit
2. Determination of sales potential present in each unit
3. Combining the basic units into tentative territories
4. Adjust for differences in coverage difficulty and
readjust the tentative territories ( build up / break
down method )
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
Objectives
Develop Strategies
Evolve Tactics /
Action Plans
E.G. A company wants to increase sales of electric
motors by 15 percent, as one of the sales
objectives.
TO ILLUSTRATE THE RELATIONSHIP BETWEEN SALES
OBJECTIVES, STRATEGIES AND TACTICS, CONSIDER:
Sales Goals /
Objectives
Marketing
Strategy
Sales and Distribution Strategy Tactics /
Action plans
? Increase
sales volume
by 15
percent
? Enter export
markets
? Identify the countries
? Decide distribution channels
? Marketing / sales head to get
relevant information
? Negotiate and sign
agreements in 3-5 months
with intermediaries
? Penetrate
existing
domestic
markets
? Review and improve
salesforce training, motivation
and compensation
? Use effective and efficient
channels
? Add channels and members
? Train salespeople in
deficient areas
? Train field salesmanagers in
effective supervision
? Link sales volume quotas to
the incentive scheme of the
compensation plan
EMERGING TRENDS IN SALES MANAGEMENT
?Global perspective
?Revolution in technology
?Customer relationship management (CRM)
?Salesforce diversity
?Team selling approach
?Managing multi-channels
?Ethical and social issues
?Sales professionalism
LINKING SALES AND
DISTRIBUTION MANAGEMENT
? Either sales management or distribution management
cannot exist, operate or perform without each other
? To achieve the sales goals of sales revenue and growth, the
sales management plans the strategy and action plans
(tactics), and the distribution management has the role to
execute these plans
ROLE OF DISTRIBUTION MANAGEMENT FOR SOME OF THE
SALES MANAGEMENT ACTIONS / TASKS
Sales Management Actions /
Tasks
Distribution Management Role
? Strategy for effective coverage
of markets and outlets
? Follow call plan / beat plan
? Make customer call productive
? Use multi-channel approach
? Strategy for handling customer
complaints
? Prompt action at the customer interface level
? If the problem persists, involve senior sales and
service people
? Planning of local advertising
and sales promotion
? Co-ordination with distribution channels
? Responsibility of execution with distribution
channels
? Expenses are shared between the company and
intermediaries
SALES MANAGEMENT
? Planning, direction and control of personal selling
including recruiting, selecting, training, equipping,
assigning, supervising, compensating and
motivating as these tasks apply to the personal
sales force.
22
SALES MANAGEMENT
? Management of the personal selling task.
? Is there anything like „impersonal selling? or „non-
personal? selling?
? Selling is an exchange transaction. Exchange of
Product or service for money
? Money is the revenue or the earnings of an enterprise
often called „turnover? or „top line?
? Sales therefore is the only revenue generating
function in an enterprise.
23
? Clear authority & Responsibility
? Quick response & Decision, Low Cost
? Weak on marketing inputs
? Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force Sales Force
Sales Manager
Head –Marketing
Head -Marketing
Marketing
Services
Sales
Promotion Brand Market Research
Area Sales
Managers
Sales Force
? Administrative Simplicity
? Access to Specialists
? Multiple reporting
? HOD is Pressures to co-ordinate
Functional Sales Organization
DEFINITION
?Value Delivery Network
? The network made up of the
company, suppliers, distributors, and
ultimately customers who “partner”
with each other to improve the
performance of the entire system.
NATURE & IMPORTANCE OF MARKETING
CHANNELS
? Channel choices affect other
decisions in the marketing
mix
? A strong distribution system
can be a competitive
advantage
? Channel decisions involve
long-term commitments to
other firms
How Channel Members
Add Value
Consumer
Marketing Channels
Figure 13-2b:
Business
Marketing Channels
NATURE & IMPORTANCE OF MARKETING
CHANNELS
?Number of Channel Levels
? The number of intermediary levels
indicates the length of a marketing
channel.
? Direct Channels
? Indirect Channels
? Producers lose more control and face
greater channel complexity as additional
channel levels are added.
CHANNEL BEHAVIOR AND ORGANIZATION
?Channel Conflict
? Occurs when channel members disagree
on roles, activities, or rewards.
? Types of Conflict:
? Horizontal conflict: occurs among firms at
the same channel level
? Vertical conflict: occurs among firms at
different channel levels
Figure 13-3:
Conventional Versus Vertical
Marketing System
Figure 13-4:
Multichannel Distribution
System
doc_681448914.pptx
To understand evolution, nature and importance of sales management, To know role and skills of modern sales managers
Sales and Distribution
Management
SALES MANAGEMENT
The only business function that
generates revenue.
LEARNING OBJECTIVES
?To understand evolution, nature and
importance of sales management
?To know role and skills of modern sales
managers
?To understand types of sales managers
?To learn objectives, strategies and tactics of
sales management
?To know emerging trends in sales
management
?To understand linkage between sales and
distribution management
EVOLUTION, NATURE AND IMPORTANCE OF
SALES MANAGEMENT
Evolution of Sales Management
?Situation before industrial revolution in U.K.
(1760AD)
?Situation after industrial revolutions in U.K., and
U.S.A.
?Marketing function splits into sales and other
functions like market research, advertising,
physical distribution
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.
NATURE OF SALES MANAGEMENT
? Its integration with marketing management
• Relationship Selling
Transactional
Relationship /
Selling
Value – added
Relationship /
Selling
Collaborative /
Partnering
Relationship /
Selling
Head-
Marketing
Manager –
Customer
Service
Manager –
Market
Logistics
Manager –
Sales
Manager –
Market
Research
Manager-
Promotion
RELATIONSHIP SELLING
? Salespeople concentrate their team selling efforts
on building trust and service on a few carefully
selected customers over a long period with a aim of
becoming a preferred or sole supplier
? Transactional Relationship / Selling:- one type of
relationship marketing in which salespeople make one-
time sales to price-oriented customers ,who are not
contacted again
? Value – added Relationship / Selling:- understanding
current and future needs of customers and meeting those
needs better than competitors with value – added
solution to their problems
? Collaborative relationship :- a type of relationship
marketing in which a selling organization works
continuously with its large customers to improve the
customer performance in terms of operations , sales and
profit
? Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business
customers or households.
• Also takes orders.
• Milk, newspapers to households
• Soft drinks, bread to retail stores.
• Order taker (Response selling) • Inside order taker
• Telemarketing salesperson takes
orders over telephone
• Outside order taker. Also
performs other tasks
• Pharma products’ orders from
nursing homes.
• Food, clothing products’ orders
from retailers
• Sales support
• Missionary selling
• Technical selling
• Provide information, build
goodwill, introduce new products
• Technical information, assistance
• Medical reps. in pharma industry
• Steel, Chemical industries
• Order-getter (Creative, Problem-
solving, Consultative selling)
• Getting orders from existing and
new household consumers
• Getting orders from business
customers, by solving their
business and technology problems
• Automobiles, refrigerators,
insurance policies
• Software and business solutions
IMPORTANCE OF PERSONAL SELLING AND
SALES MANAGEMENT
?The only function / department in a
company that generates revenue / income
?The financial results of a firm depend on the
performance of the sales department /
management
?Many salespeople are among the best paid
people in business
?It is one of the fastest and surest routes to
the top management
ROLES AND SKILLS OF A MODERN SALES
MANAGER
Some of the important roles of the modern sales
manager are:
• A member of the strategic management team
• A member of the corporate team to achieve objectives
• A team leader, working with salespeople
• Managing multiple sales / marketing channels
• Using latest technologies (like CRM) to build superior
buyer-seller relationships
• Continually updating information on changes in
marketing environment
SKILLS OF A SUCCESSFUL SALES
MANAGER
?People skills include abilities to motivate,
lead, communicate, coordinate, team-
oriented relationship, and mentoring
?Managing skills consist of planning,
organizing, controlling and decision making
?Technical skills include training, selling,
negotiating, problem-solving, and use of
computers
TYPES OF SALES MANAGERS / LEVELS OF
SALES MANAGEMENT POSITIONS
CEO /
President
V. P. Sales /
V. P. Marketing
National Sales Manager
Regional / Zonal / Divisional
Sales Managers
District / Branch / Area Sales Managers
Sales Trainee / Sales Person / Sales Representative
First / Lower Level Sales Managers
Middle-Level Sales Managers
Top-Level Sales Managers /
Leaders
SALES TERRITORIES
?Definition : A sales territory consists of
existing and potential customers
assigned to a sales person. The territory
may or may not have geographic
boundaries.
REASONS FOR TERRITORIES
?Increase / improve customer coverage
?Control selling expenses
?Effective evaluation of salesman?s
performance.
? Improve customer relations
TERRITORY DESIGN
? Main procedural steps:
1. Selection of a basic geographical control unit
2. Determination of sales potential present in each unit
3. Combining the basic units into tentative territories
4. Adjust for differences in coverage difficulty and
readjust the tentative territories ( build up / break
down method )
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
Objectives
Develop Strategies
Evolve Tactics /
Action Plans
E.G. A company wants to increase sales of electric
motors by 15 percent, as one of the sales
objectives.
TO ILLUSTRATE THE RELATIONSHIP BETWEEN SALES
OBJECTIVES, STRATEGIES AND TACTICS, CONSIDER:
Sales Goals /
Objectives
Marketing
Strategy
Sales and Distribution Strategy Tactics /
Action plans
? Increase
sales volume
by 15
percent
? Enter export
markets
? Identify the countries
? Decide distribution channels
? Marketing / sales head to get
relevant information
? Negotiate and sign
agreements in 3-5 months
with intermediaries
? Penetrate
existing
domestic
markets
? Review and improve
salesforce training, motivation
and compensation
? Use effective and efficient
channels
? Add channels and members
? Train salespeople in
deficient areas
? Train field salesmanagers in
effective supervision
? Link sales volume quotas to
the incentive scheme of the
compensation plan
EMERGING TRENDS IN SALES MANAGEMENT
?Global perspective
?Revolution in technology
?Customer relationship management (CRM)
?Salesforce diversity
?Team selling approach
?Managing multi-channels
?Ethical and social issues
?Sales professionalism
LINKING SALES AND
DISTRIBUTION MANAGEMENT
? Either sales management or distribution management
cannot exist, operate or perform without each other
? To achieve the sales goals of sales revenue and growth, the
sales management plans the strategy and action plans
(tactics), and the distribution management has the role to
execute these plans
ROLE OF DISTRIBUTION MANAGEMENT FOR SOME OF THE
SALES MANAGEMENT ACTIONS / TASKS
Sales Management Actions /
Tasks
Distribution Management Role
? Strategy for effective coverage
of markets and outlets
? Follow call plan / beat plan
? Make customer call productive
? Use multi-channel approach
? Strategy for handling customer
complaints
? Prompt action at the customer interface level
? If the problem persists, involve senior sales and
service people
? Planning of local advertising
and sales promotion
? Co-ordination with distribution channels
? Responsibility of execution with distribution
channels
? Expenses are shared between the company and
intermediaries
SALES MANAGEMENT
? Planning, direction and control of personal selling
including recruiting, selecting, training, equipping,
assigning, supervising, compensating and
motivating as these tasks apply to the personal
sales force.
22
SALES MANAGEMENT
? Management of the personal selling task.
? Is there anything like „impersonal selling? or „non-
personal? selling?
? Selling is an exchange transaction. Exchange of
Product or service for money
? Money is the revenue or the earnings of an enterprise
often called „turnover? or „top line?
? Sales therefore is the only revenue generating
function in an enterprise.
23
? Clear authority & Responsibility
? Quick response & Decision, Low Cost
? Weak on marketing inputs
? Sales manager controlled
Line Sales Organization structure
Area Sales
Mgr
Area Sales Mgr
Area Sales
Mgr
Area Sales
Mgr
Sales Force Sales Force
Sales Force Sales Force
Sales Manager
Head –Marketing
Head -Marketing
Marketing
Services
Sales
Promotion Brand Market Research
Area Sales
Managers
Sales Force
? Administrative Simplicity
? Access to Specialists
? Multiple reporting
? HOD is Pressures to co-ordinate
Functional Sales Organization
DEFINITION
?Value Delivery Network
? The network made up of the
company, suppliers, distributors, and
ultimately customers who “partner”
with each other to improve the
performance of the entire system.
NATURE & IMPORTANCE OF MARKETING
CHANNELS
? Channel choices affect other
decisions in the marketing
mix
? A strong distribution system
can be a competitive
advantage
? Channel decisions involve
long-term commitments to
other firms
How Channel Members
Add Value
Consumer
Marketing Channels
Figure 13-2b:
Business
Marketing Channels
NATURE & IMPORTANCE OF MARKETING
CHANNELS
?Number of Channel Levels
? The number of intermediary levels
indicates the length of a marketing
channel.
? Direct Channels
? Indirect Channels
? Producers lose more control and face
greater channel complexity as additional
channel levels are added.
CHANNEL BEHAVIOR AND ORGANIZATION
?Channel Conflict
? Occurs when channel members disagree
on roles, activities, or rewards.
? Types of Conflict:
? Horizontal conflict: occurs among firms at
the same channel level
? Vertical conflict: occurs among firms at
different channel levels
Figure 13-3:
Conventional Versus Vertical
Marketing System
Figure 13-4:
Multichannel Distribution
System
doc_681448914.pptx