Description
This presentation describes on Sales related marketing policies ppt covers product, distribution and pricing strategies alongwith forumlating personal selling, competitive strategies, monopolies, oligopoly, missionary selling and technical selling.
Sales Related Marketing Policies
Agenda
? Product Policies - What To Sell ? ? Distribution Policies – Who to Sell ? ? Pricing Policies – What price to Sell
?
Introduction
? Sales related marketing policies directly influence
the jobs of sales executives. ? These policies provide the direction to organize ,manage and control the sales effort . ? These are generally company governed and formulated policies which are administered by sales executives.
Product Policies – What to Sell ?
? The products a company sells determines its
basic nature. ? These serve are guidelines for making product decisions. ? They are derived from product objectives
Product Policies
? Product Line Policy
Short line(specialization) or full line (wide selection) policies. 2. Governed by willingness to take risk. Narrower the line greater the risk.
1.
1. Changes in Product Offerings
-to determine the product tuning with market
-to determine products which needs to be dropped or added
Product Policies
2. Reappraising the product line and line simplification -adding or removal of profitable and non profitable product lines and customer accounts. 3. Reappraising the product line and line diversification -relative to growth objectives 4. Ideas for new products -Internal and external sources for new ideas. 5. Appraisal of proposed new products. -criteria is profitability, nature and size of likely markets, competition, price policy, sales programs and legal implications.
Product Policies
? Product Design Policy
Frequency of design change 2. Extent to which designs are to be protected from copying.
1.
?
1.
Product Quality and Service Policy
High quality products require less service and low quality products requires high service. 2. Guarantee policy – serves either protective or promotional purposes.
Distribution Policies – Who to Sell ?
? Policies on Marketing Channels
Channels should be chosen in order to obtain the optimum combination of profit factors. Time dimensions must be considered in addition to : 1. Sales Volume Potential 2. Comparative distribution costs 3. Net Profit Possibilities
Distribution Policies
? Policies on Distribution Intensity
Following distribution strategies are implemented by company : 1. Mass Distribution 2. Selective Distribution 3. Exclusive Agency Distribution
Pricing Policies
? Policy on Pricing Relative to Competition
Meeting the competition 2. Pricing above the competition 3. Pricing under the competition
1.
?
Policy on Pricing Relative to Costs
1. Full cost pricing 2. Promotion pricing 3. Contribution pricing
Pricing Policies
? Policy on Uniformity of Prices to Different
Buyers.
Company choose between: One-price policy (same price) 2. Variable price policy ( price determined by individual bargaining)
1.
Here bargaining power of buyers varies with the size of transaction.
Pricing Policies
? Policy on List Pricing
? List pricing takes variety of forms most common being
: ? Printing the price on package ? Sales personnel to suggest the resale price to buyers.
? Policy on Discounts
1. Trade Discounts 2. Quantity Discounts
Pricing Policies
? Geographical Pricing Policies
1. 2. 3.
Free on Board (F.O.B) pricing – customer pays the freight Delivered pricing – seller pays the freight Freight absorption – compromise between delivered and F.O.B pricing.
?
? ?
Policy on Price Leadership
Price changes by Market Leader and Followers Decision depends upon marketer’s relative market position and the image of leadership that it desires to build and maintain
Pricing Policies
? Product Line Pricing Policy
? Different items in product lines compete with each other. ? Price space between the individual members of the line ? Bottom of line as ‘traffic builders’ and top of line as
‘prestige builders’
? Competitive Bidding Policy
? Industrial and government buyers solicit competitive bids
from potential suppliers and award the business to the bidder offering the best proposal ? Decision depending upon various factors such as price, delivery dates, reputation for quality etc.
Chapter 5
FORMULATING PERSONAL-SELLING STRATEGY
AGENDA
? Competitive Settings
--Pure, Monopolistic, Oligopolistic, No Direct Competition
? Personal Selling Objectives
-- Qualitative & Quantitative
? Determining the kind of sales personnel
--Product Market Analysis, Salesperson’s role in securing orders, choice of basic selling style
? Determining the size of the sales force
--Workload, Sales Potential, Incremental
? Individualizing selling strategies
Competitive Strategies
Pure
? Large number of buyers and sellers ? No one powerful enough to control or influence market prices ? No buyer or seller is so big which can impact the product’s
total demand and supply ? All products are identical, no differentiation ? All buyers are aware of all sellers’ prices Not a real world situation and hence no company concerns itself with a particular personal selling strategy for Pure Competition
Monopolistic
? Many competing producers sell products that are
differentiated from one another (ie. the products are substitutes, but are not exactly alike)
? Easy for additional competitors to enter the market ? Advertising differentiates the brand in the minds of final
buyers and stimulates selective demand
Key element in marketing strategy is the ability to differentiate the product ( by both Advertising and Personal Selling) Personal Selling’s role is that of servicing the distribution network and stimulating promotional efforts by the middlemen
Oligopolistic ? Number of competitors are small enough that they are individually identified and known to each other
? Difficult for new competitor to enter the market ? Successful organizations keep on growing and less
successful disappears
? Oligopoly produces most aggressive competition ? Strategies of one player has deep impact on the strategies of
other players Personal Selling Strategy plays important role in building and maintaining dealer cooperation, in servicing distribution network and in gathering information on competitor’s activities
? No Direct Competition ? Both monopoly or oligopoly have indirect competition ? They vie sellers in other industries for the same
prospects’ interest and buying decisions ? Even in case of no direct competition, personal selling and advertising plays an important role Both require the effective implementation of personal selling strategy in terms of both kind and number of sales personnel even in case of indirect competition Choosing pricing strategy calls for effective implementation of personal selling strategy
Personal Selling Objectives
Qualitative ? Vary with competitive setting ? Long Term ? Carried from one operating period to another ? When qualitative objectives change, there are changes in nature of sales jobs and size of the sales force Quantitative ? Vary with competitive setting ? Short Term ? Adjusted from operating period to operating period ? Since short term, they impact more upon the size of the sales force than upon the nature of the sales job
Determining the kind of Sales Personnel
Each company deals with unique set of marketing factors: ? Strengths & Weakness of products ? Motivations and buying practices of its customers and prospects ? Pricing Strategy ? Competitive Setting Different selling jobs require different levels of selling and non selling activities, training, technical and other knowledge We must understand what is expected of salesperson: ? Job Objectives ? Duties and Responsibilities ? Performance measures
Product Market Analysis
? Product Specialists
When product is highly technical ? Requiring salespersons to advise on uses and applications
?
? Market Specialists ? Product is non technical ? When different kinds of customers have unique buying
problems and require special sales approaches or need special service
? Combination of both ? On the basis of Product-Market grid, you can chose
whether the sales personnel should be product or market specialist
Types and Amount of Specialization in Selling Organizations
Dominant Interdependence ? Dominant Expertise Between Customers Between Products
Product Technologies
Product Specialists
Full-Line Salespersons (supported by Product Managers)
Customers’ Applications
Customer Specialists Full-Line Salespersons (specialized by kind of customer)
Analysis of Salesperson’s role in securing orders
? Salespersons may be active or passive in securing
orders
? The role influences the decision of kind of staff
required
? Salespersons may seek order aggressively ? They need only take orders coming their way ? Salespersons may act as advisors to middlemen or
the customer
Choice of Basic Selling Style
? Trade Selling ? Develops and maintains long term relationships with a stable
group of customers ? Low key selling with little or no pressure ? Routine job ? Advertising and other promotions more important than personal selling ? Help customer build up their volume through promotional assistance
? Missionary Selling ? Increase sales volume by assisting customers with their
selling efforts ? Persuade indirect customers to by from the company’s direct customers ? They also play a role in influencing people who do not purchase the product but who influence its purchase
? Technical Selling ? Deals primarily with company’s established accounts ? Increase their volume of purchase by providing technical
advice and assistance ? Performs advisory functions similar to the missionary salesperson ? In addition, sells direct to industrial users and other buyers ? In this style, ability to identify, analyze and solve customers’
? New-business Selling ? Find and obtain new customers ? Convert prospects into customers ? Usually salespersons are creative and ingenious and
posses high degree of resourcefulness
? Sometimes salesperson doing trade selling engages
themselves in new-business selling also
Determining the size of the sales force
? Workload Method
1. Classify customers, both present and prospective into sales volume potential categories 2. Decide on the length of time per sales call and desired call frequencies on each class 3. Calculate the total work load involved in covering the entire market 4. Determining the total work time available per salesperson 5. Divide the total work time available per salesperson by task 6. Calculate the total number of salespeople needed
? Sales Potential Method
? Concept of Sales Personnel Unit ? A salesperson may represent more or less than one sales
personnel unit depending upon his/her skills and expertise
? Sales job descriptions are constructed on management
assumption that they describe what the average salesperson with average performance will accomplish
? With above information, we can derive amount of sales
volume each salesperson should produce
? Dividing the above amount into forecasted sales volume and
allowing for sales force turnover results in an estimated number of salespeople needed
Sales Potential Method
N = S/P (1 + T) Where N = Number of sales personnel unit S = Forecasted sales volume P = Estimated sales productivity of one sales personnel unit T = allowance for rate of sales force turnover
? Incremental Model
? Company develops a sales response function (a quantitative
function that’s describes the relationship between the amount of personal selling effort and the resulting sales volume
? Based on the proposition: Net profits will increase when
additional sales personnel are added if the incremental sales revenue exceed the incremental costs incurred
? Information required: Incremental costs and Incremental
revenue
? Calculate the net profit contribution resulting from the addition
of each salesperson
Incremental Model
? Although conceptually correct, it is difficult to apply ? Not suited where personal selling is not the primary
means of making sales (where advertising and other promotions play an important role)
? Fails to account for possible competitive reactions
Individualizing Selling Strategies to customers
? Each salesperson must individualize his or her dealings with
the customer ? Regardless of the basic selling style or the role of order getter or order taker, the salespersons’ success depends upon the outcome of interaction with the customers ? Behavior and sales pitch of the salesperson varies from customer to customer ? Selling skills is a function of both ? preplanning of each sales call ? performance on the call itself Individual salesperson’s performance ultimately determine the success or failure of company’s overall personal-selling strategy, sales management has a very important role in helping them develop and improve selling skills
The Effective Sales Executive
Agenda
• Nature of Sales Management Positions
• Position Guide – Sales Manager • Position Guide – District Sales Manager • Functions of Sales Executive • Qualities of Effective Sales Executive • Relations with Top Management • Relations with Managers of Other Marketing Activities • Compensation Pattern
• Conclusion
Effective Sales Executive
? The job of the sales executive is more action oriented and
less planning oriented
? Main concern of sales management is the “present” – the
“here and now”
? Their decisions not only affect the sales department, but
may have significant implications elsewhere in the
organization
Nature of Sales Management Positions
• Requirements of the sales executive’s job position vary from
company to company and from position to position in a company
• It is possible to generalize about activities and responsibilities of
sales managers, district sales managers, product managers and
other sales or marketing executives
• Some companies have formulated concise statements of duties
associated with various positions, known as job or position descriptions
Position Guide – Sales Manager
• Reports to the vice president of marketing • The primary objective is to secure maximum volume of dollar sales through
the effective development and execution of sales programs and sales policies for all products sold by division
• Duties and responsibilities:
– Sales Program – Organization
– Sales Force Management
– Internal and External Relations – Communications – Control
? Performance is satisfactory when,
? Department’s dollar or unit sales are equal to or exceed the
quantities budgeted
? Profit contribution of the sales department is in line with plan ? Details of sales plan are in writing and are acceptable to
marketing management
? Turnover of sales personnel is maintained at a level regarded
as satisfactory by marketing management
Position Guide – District Sales Manager
• Reports to the sales manager
• The primary objective is to secure maximum dollar sales of the
company’s products in the sales district in accordance with established sales policies and sales programs, within the limits of sales budget
• Duties and Responsibilities:
– Supervision of Sales Personnel – Control – Administration – Communications
• Performance is satisfactory when,
– District’s dollar and unit sales are equal to or exceed the
quantities budgeted
– District’s total expenses are no higher than the amounts
budgeted
– Profit contribution of the district office and warehouse and
stock facilities is in line with plan
– Turnover rate of district sales personnel is maintained at a
level regarded as satisfactory by the (general) sales manager
Functions of sales Executive
• Basically has two sets of functions
- Operating
- Sales Force Management - Handling relationships with personnel in other company departments and with trade
- Communicating and coordinating with other
marketing
executives
- Reporting to some superior executive
- Planning - Setting personal-selling goals - Developing sales program designed to achieve these goals - Formulating sales strategies and personal-selling strategies - Putting together plans for their implementation
These functions varies with - The type of products - The size of the company - The type of supervisory organization
Qualities of Effective Sales Executive
He should have
• Ability to define the position’s exact functions and duties in relation
to the goals the company should expect to attain
• Ability to select and train capable subordinates and willingness to
delegate sufficient authority to enable them to carry out assigned tasks with minimum supervision
• Ability to utilize time efficiently • Ability to allocate sufficient time for thinking and planning • Ability to exercise skilled leadership
Relations with Top Management
? Effective sales executives need to keep the top management
abreast of their progress as their personal goals are
intertwined with company’s goals
? They should not be dispensable to the company and should
be able to delegate tasks effectively
? They update the top management of all the latest activities
through periodic reports and presentations
Relations with Product management
? Product planning and formulation of product policies
requires numerous decisions
? Sales executives provide input for these decisions ? Their contact with the market through subordinates and
sales personnel provide them with feedback about product performance and acceptance generally not available from
other sources
Relations with Promotion Management
? Sales executives play a very important role in promotional
activities as they are the one who actually implement them
? They must be involved in formulating policies as they are
very close to the customers
? The sales force must be kept updated about all the latest
promotional activities
Relations with Pricing Management
? Sales executives have much clearer ideas of the prices the
buyers are willing to pay, because of the close and
continuing contacts with the market
? Pricing policies need to be formulated by a committee
comprising of members from different departments
? Once the policy is established, its implementation is the
responsibility of the sales executive
Relations with Distribution Management
? Distribution policies are major determinants of the breadth
and complexity of sales department’s organization and
functions
? It has an impact on the sales organization and its activities ? Sales executives play key roles in providing information
needed for their formulation
Compensation Pattern For Sales Executives
• Compensation pattern differs on the basis of position of the sales
executive in the hierarchy and the size of the company
• Sales executive receive some of their pay as bonuses,
commissions and other “incentive” payments
• These payments are based upon relative profit performances at
higher executive levels and upon sales volume achieved relative to sales potentials at lower executive level
• More than half of the sales executives have stock options
Thank You !
doc_357904104.pptx
This presentation describes on Sales related marketing policies ppt covers product, distribution and pricing strategies alongwith forumlating personal selling, competitive strategies, monopolies, oligopoly, missionary selling and technical selling.
Sales Related Marketing Policies
Agenda
? Product Policies - What To Sell ? ? Distribution Policies – Who to Sell ? ? Pricing Policies – What price to Sell
?
Introduction
? Sales related marketing policies directly influence
the jobs of sales executives. ? These policies provide the direction to organize ,manage and control the sales effort . ? These are generally company governed and formulated policies which are administered by sales executives.
Product Policies – What to Sell ?
? The products a company sells determines its
basic nature. ? These serve are guidelines for making product decisions. ? They are derived from product objectives
Product Policies
? Product Line Policy
Short line(specialization) or full line (wide selection) policies. 2. Governed by willingness to take risk. Narrower the line greater the risk.
1.
1. Changes in Product Offerings
-to determine the product tuning with market
-to determine products which needs to be dropped or added
Product Policies
2. Reappraising the product line and line simplification -adding or removal of profitable and non profitable product lines and customer accounts. 3. Reappraising the product line and line diversification -relative to growth objectives 4. Ideas for new products -Internal and external sources for new ideas. 5. Appraisal of proposed new products. -criteria is profitability, nature and size of likely markets, competition, price policy, sales programs and legal implications.
Product Policies
? Product Design Policy
Frequency of design change 2. Extent to which designs are to be protected from copying.
1.
?
1.
Product Quality and Service Policy
High quality products require less service and low quality products requires high service. 2. Guarantee policy – serves either protective or promotional purposes.
Distribution Policies – Who to Sell ?
? Policies on Marketing Channels
Channels should be chosen in order to obtain the optimum combination of profit factors. Time dimensions must be considered in addition to : 1. Sales Volume Potential 2. Comparative distribution costs 3. Net Profit Possibilities
Distribution Policies
? Policies on Distribution Intensity
Following distribution strategies are implemented by company : 1. Mass Distribution 2. Selective Distribution 3. Exclusive Agency Distribution
Pricing Policies
? Policy on Pricing Relative to Competition
Meeting the competition 2. Pricing above the competition 3. Pricing under the competition
1.
?
Policy on Pricing Relative to Costs
1. Full cost pricing 2. Promotion pricing 3. Contribution pricing
Pricing Policies
? Policy on Uniformity of Prices to Different
Buyers.
Company choose between: One-price policy (same price) 2. Variable price policy ( price determined by individual bargaining)
1.
Here bargaining power of buyers varies with the size of transaction.
Pricing Policies
? Policy on List Pricing
? List pricing takes variety of forms most common being
: ? Printing the price on package ? Sales personnel to suggest the resale price to buyers.
? Policy on Discounts
1. Trade Discounts 2. Quantity Discounts
Pricing Policies
? Geographical Pricing Policies
1. 2. 3.
Free on Board (F.O.B) pricing – customer pays the freight Delivered pricing – seller pays the freight Freight absorption – compromise between delivered and F.O.B pricing.
?
? ?
Policy on Price Leadership
Price changes by Market Leader and Followers Decision depends upon marketer’s relative market position and the image of leadership that it desires to build and maintain
Pricing Policies
? Product Line Pricing Policy
? Different items in product lines compete with each other. ? Price space between the individual members of the line ? Bottom of line as ‘traffic builders’ and top of line as
‘prestige builders’
? Competitive Bidding Policy
? Industrial and government buyers solicit competitive bids
from potential suppliers and award the business to the bidder offering the best proposal ? Decision depending upon various factors such as price, delivery dates, reputation for quality etc.
Chapter 5
FORMULATING PERSONAL-SELLING STRATEGY
AGENDA
? Competitive Settings
--Pure, Monopolistic, Oligopolistic, No Direct Competition
? Personal Selling Objectives
-- Qualitative & Quantitative
? Determining the kind of sales personnel
--Product Market Analysis, Salesperson’s role in securing orders, choice of basic selling style
? Determining the size of the sales force
--Workload, Sales Potential, Incremental
? Individualizing selling strategies
Competitive Strategies
Pure
? Large number of buyers and sellers ? No one powerful enough to control or influence market prices ? No buyer or seller is so big which can impact the product’s
total demand and supply ? All products are identical, no differentiation ? All buyers are aware of all sellers’ prices Not a real world situation and hence no company concerns itself with a particular personal selling strategy for Pure Competition
Monopolistic
? Many competing producers sell products that are
differentiated from one another (ie. the products are substitutes, but are not exactly alike)
? Easy for additional competitors to enter the market ? Advertising differentiates the brand in the minds of final
buyers and stimulates selective demand
Key element in marketing strategy is the ability to differentiate the product ( by both Advertising and Personal Selling) Personal Selling’s role is that of servicing the distribution network and stimulating promotional efforts by the middlemen
Oligopolistic ? Number of competitors are small enough that they are individually identified and known to each other
? Difficult for new competitor to enter the market ? Successful organizations keep on growing and less
successful disappears
? Oligopoly produces most aggressive competition ? Strategies of one player has deep impact on the strategies of
other players Personal Selling Strategy plays important role in building and maintaining dealer cooperation, in servicing distribution network and in gathering information on competitor’s activities
? No Direct Competition ? Both monopoly or oligopoly have indirect competition ? They vie sellers in other industries for the same
prospects’ interest and buying decisions ? Even in case of no direct competition, personal selling and advertising plays an important role Both require the effective implementation of personal selling strategy in terms of both kind and number of sales personnel even in case of indirect competition Choosing pricing strategy calls for effective implementation of personal selling strategy
Personal Selling Objectives
Qualitative ? Vary with competitive setting ? Long Term ? Carried from one operating period to another ? When qualitative objectives change, there are changes in nature of sales jobs and size of the sales force Quantitative ? Vary with competitive setting ? Short Term ? Adjusted from operating period to operating period ? Since short term, they impact more upon the size of the sales force than upon the nature of the sales job
Determining the kind of Sales Personnel
Each company deals with unique set of marketing factors: ? Strengths & Weakness of products ? Motivations and buying practices of its customers and prospects ? Pricing Strategy ? Competitive Setting Different selling jobs require different levels of selling and non selling activities, training, technical and other knowledge We must understand what is expected of salesperson: ? Job Objectives ? Duties and Responsibilities ? Performance measures
Product Market Analysis
? Product Specialists
When product is highly technical ? Requiring salespersons to advise on uses and applications
?
? Market Specialists ? Product is non technical ? When different kinds of customers have unique buying
problems and require special sales approaches or need special service
? Combination of both ? On the basis of Product-Market grid, you can chose
whether the sales personnel should be product or market specialist
Types and Amount of Specialization in Selling Organizations
Dominant Interdependence ? Dominant Expertise Between Customers Between Products
Product Technologies
Product Specialists
Full-Line Salespersons (supported by Product Managers)
Customers’ Applications
Customer Specialists Full-Line Salespersons (specialized by kind of customer)
Analysis of Salesperson’s role in securing orders
? Salespersons may be active or passive in securing
orders
? The role influences the decision of kind of staff
required
? Salespersons may seek order aggressively ? They need only take orders coming their way ? Salespersons may act as advisors to middlemen or
the customer
Choice of Basic Selling Style
? Trade Selling ? Develops and maintains long term relationships with a stable
group of customers ? Low key selling with little or no pressure ? Routine job ? Advertising and other promotions more important than personal selling ? Help customer build up their volume through promotional assistance
? Missionary Selling ? Increase sales volume by assisting customers with their
selling efforts ? Persuade indirect customers to by from the company’s direct customers ? They also play a role in influencing people who do not purchase the product but who influence its purchase
? Technical Selling ? Deals primarily with company’s established accounts ? Increase their volume of purchase by providing technical
advice and assistance ? Performs advisory functions similar to the missionary salesperson ? In addition, sells direct to industrial users and other buyers ? In this style, ability to identify, analyze and solve customers’
? New-business Selling ? Find and obtain new customers ? Convert prospects into customers ? Usually salespersons are creative and ingenious and
posses high degree of resourcefulness
? Sometimes salesperson doing trade selling engages
themselves in new-business selling also
Determining the size of the sales force
? Workload Method
1. Classify customers, both present and prospective into sales volume potential categories 2. Decide on the length of time per sales call and desired call frequencies on each class 3. Calculate the total work load involved in covering the entire market 4. Determining the total work time available per salesperson 5. Divide the total work time available per salesperson by task 6. Calculate the total number of salespeople needed
? Sales Potential Method
? Concept of Sales Personnel Unit ? A salesperson may represent more or less than one sales
personnel unit depending upon his/her skills and expertise
? Sales job descriptions are constructed on management
assumption that they describe what the average salesperson with average performance will accomplish
? With above information, we can derive amount of sales
volume each salesperson should produce
? Dividing the above amount into forecasted sales volume and
allowing for sales force turnover results in an estimated number of salespeople needed
Sales Potential Method
N = S/P (1 + T) Where N = Number of sales personnel unit S = Forecasted sales volume P = Estimated sales productivity of one sales personnel unit T = allowance for rate of sales force turnover
? Incremental Model
? Company develops a sales response function (a quantitative
function that’s describes the relationship between the amount of personal selling effort and the resulting sales volume
? Based on the proposition: Net profits will increase when
additional sales personnel are added if the incremental sales revenue exceed the incremental costs incurred
? Information required: Incremental costs and Incremental
revenue
? Calculate the net profit contribution resulting from the addition
of each salesperson
Incremental Model
? Although conceptually correct, it is difficult to apply ? Not suited where personal selling is not the primary
means of making sales (where advertising and other promotions play an important role)
? Fails to account for possible competitive reactions
Individualizing Selling Strategies to customers
? Each salesperson must individualize his or her dealings with
the customer ? Regardless of the basic selling style or the role of order getter or order taker, the salespersons’ success depends upon the outcome of interaction with the customers ? Behavior and sales pitch of the salesperson varies from customer to customer ? Selling skills is a function of both ? preplanning of each sales call ? performance on the call itself Individual salesperson’s performance ultimately determine the success or failure of company’s overall personal-selling strategy, sales management has a very important role in helping them develop and improve selling skills
The Effective Sales Executive
Agenda
• Nature of Sales Management Positions
• Position Guide – Sales Manager • Position Guide – District Sales Manager • Functions of Sales Executive • Qualities of Effective Sales Executive • Relations with Top Management • Relations with Managers of Other Marketing Activities • Compensation Pattern
• Conclusion
Effective Sales Executive
? The job of the sales executive is more action oriented and
less planning oriented
? Main concern of sales management is the “present” – the
“here and now”
? Their decisions not only affect the sales department, but
may have significant implications elsewhere in the
organization
Nature of Sales Management Positions
• Requirements of the sales executive’s job position vary from
company to company and from position to position in a company
• It is possible to generalize about activities and responsibilities of
sales managers, district sales managers, product managers and
other sales or marketing executives
• Some companies have formulated concise statements of duties
associated with various positions, known as job or position descriptions
Position Guide – Sales Manager
• Reports to the vice president of marketing • The primary objective is to secure maximum volume of dollar sales through
the effective development and execution of sales programs and sales policies for all products sold by division
• Duties and responsibilities:
– Sales Program – Organization
– Sales Force Management
– Internal and External Relations – Communications – Control
? Performance is satisfactory when,
? Department’s dollar or unit sales are equal to or exceed the
quantities budgeted
? Profit contribution of the sales department is in line with plan ? Details of sales plan are in writing and are acceptable to
marketing management
? Turnover of sales personnel is maintained at a level regarded
as satisfactory by marketing management
Position Guide – District Sales Manager
• Reports to the sales manager
• The primary objective is to secure maximum dollar sales of the
company’s products in the sales district in accordance with established sales policies and sales programs, within the limits of sales budget
• Duties and Responsibilities:
– Supervision of Sales Personnel – Control – Administration – Communications
• Performance is satisfactory when,
– District’s dollar and unit sales are equal to or exceed the
quantities budgeted
– District’s total expenses are no higher than the amounts
budgeted
– Profit contribution of the district office and warehouse and
stock facilities is in line with plan
– Turnover rate of district sales personnel is maintained at a
level regarded as satisfactory by the (general) sales manager
Functions of sales Executive
• Basically has two sets of functions
- Operating
- Sales Force Management - Handling relationships with personnel in other company departments and with trade
- Communicating and coordinating with other
marketing
executives
- Reporting to some superior executive
- Planning - Setting personal-selling goals - Developing sales program designed to achieve these goals - Formulating sales strategies and personal-selling strategies - Putting together plans for their implementation
These functions varies with - The type of products - The size of the company - The type of supervisory organization
Qualities of Effective Sales Executive
He should have
• Ability to define the position’s exact functions and duties in relation
to the goals the company should expect to attain
• Ability to select and train capable subordinates and willingness to
delegate sufficient authority to enable them to carry out assigned tasks with minimum supervision
• Ability to utilize time efficiently • Ability to allocate sufficient time for thinking and planning • Ability to exercise skilled leadership
Relations with Top Management
? Effective sales executives need to keep the top management
abreast of their progress as their personal goals are
intertwined with company’s goals
? They should not be dispensable to the company and should
be able to delegate tasks effectively
? They update the top management of all the latest activities
through periodic reports and presentations
Relations with Product management
? Product planning and formulation of product policies
requires numerous decisions
? Sales executives provide input for these decisions ? Their contact with the market through subordinates and
sales personnel provide them with feedback about product performance and acceptance generally not available from
other sources
Relations with Promotion Management
? Sales executives play a very important role in promotional
activities as they are the one who actually implement them
? They must be involved in formulating policies as they are
very close to the customers
? The sales force must be kept updated about all the latest
promotional activities
Relations with Pricing Management
? Sales executives have much clearer ideas of the prices the
buyers are willing to pay, because of the close and
continuing contacts with the market
? Pricing policies need to be formulated by a committee
comprising of members from different departments
? Once the policy is established, its implementation is the
responsibility of the sales executive
Relations with Distribution Management
? Distribution policies are major determinants of the breadth
and complexity of sales department’s organization and
functions
? It has an impact on the sales organization and its activities ? Sales executives play key roles in providing information
needed for their formulation
Compensation Pattern For Sales Executives
• Compensation pattern differs on the basis of position of the sales
executive in the hierarchy and the size of the company
• Sales executive receive some of their pay as bonuses,
commissions and other “incentive” payments
• These payments are based upon relative profit performances at
higher executive levels and upon sales volume achieved relative to sales potentials at lower executive level
• More than half of the sales executives have stock options
Thank You !
doc_357904104.pptx