Nature and Scope of Sales

Management

MBA III

Punjabi University

According to a jobs provider company

‘Manpower’, sales positions are the

hardest to fill.

Sales – one of the most expensive

activities in any firm (constitutes more than

20% of revenue)

Starting salaries for sales people higher

than most of other positions

Many CEOs like Mark Hurd (HP), start in

sales

What is Sales Management?

Sales management is defined as the activities required to lead, direct, or supervise the personal selling efforts of an organization.

Sales management is also defines as the attainment of sales force goals in an effective and efficient manner through: o Planning

o Staffing

o Training

o Leading

o Controlling firm’s resources

Nature of sales management

Is an art

oConceptual skills

oPeople skills

oTechnical skills

oDecision skills

Is a science

oIs a process with definite steps

Cont’d…

Aids in achievement of organizational

objectives

oThrough relationships (both business and

consumer)

oMonitoring performance

oRealize profits

Scope of sales management

Encompasses several activities of a

manager

Manage marketing activities (4 Ps)

Marketing research and intelligence

Applicable at all places where selling

is done:

◦ Manufacturing and wholesale

◦ Retail

◦ Services (banking, insurance, software)

Cont’d….

Employable in firms which have no direct sales function like for manufacturing intermediaries

Has several roles such as recruitment and selection, training, compensation, appraisal, motivations, assignment, organizing, etc.

3 major objectives of sales management: ◦ Sales volume

◦ Contribution to profits

◦ Continuing growth

Cont’d…

Implement control

◦ Set standards and communicate

◦ Measure and evaluate actual

performance

◦ Take corrective action

Sales

Trainee

Salesperson

Key Account

Salesperson

District Sales

Manager

Regional Sales

Manager

Zone Sales

Manager

National Sales Mgr.

Vice President of

Marketing

President

FIGURE 1.1 A SALES PERSONNEL CAREER PATH

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

PLANNING

The conscious, systemic process of making

decisions about goals and activities that an

individual, group, work unit, or organization

will pursue in the future and the use of

resources needed to attain them.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

STAFFING

Activities undertaken to attract, develop, and

maintain effective sales personnel within an

organization.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

SALES TRAINING

The effort put forth by an employer to provide

the salesperson job-related culture, skills,

knowledge, and attitudes that result in

improved performance in the selling

environment.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

LEADING

The ability to influence other people

toward the attainment of objectives.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

CONTROLLING

Monitoring sales personnel’s activities,

determining whether the organization is on

target toward its goals, and making

corrections as necessary.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

Sales Management is the attainment of

sales goals in an ethical, efficient, and

effective manner.

SALES PERFORMANCE

Top Sales Leaders

(Strategic)

First-Line Sales Leaders (Operational)

Middle Sales Leaders

(Tactical)

FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

Regional Sales Leader

CE

O

Presiden

t

Vice President of

Marketing

National Sales Leader

Zone Sales Leader

District Sales Leader

Assistant District Sales Leader

Nonmanagerial Salespeople

Sales Trainee Salesperson Key Account

Basis of Difference MARKETING

MANAGEMENT

SALES MANAGEMENT

1. SCOPE Marketing management is

a very wide term. It includes

Sales management.

The scope of sales

management is less in

comparison to marketing

management. It is a part of

marketing.

2. Evolution It is a new concept in

comparison to Sales

management.

It is an old concept.

3. Activities It includes all the activities

performed for promoting

customer satisfaction. It

includes activities of

consumer research so as to

identify customers’ need,

preferences, tastes, so that

product planning and

development can be done

according to customer’s

preferences.

It includes Selling activities.

It mainly includes selling

activities related to transfer

of ownership of goods an

services from seller to

buyer.

Basis of Difference MARKETING

MANAGEMENT

SALES MANAGEMENT

4. Producer V/s

Consumer oriented

It is customer oriented. It

stresses on consumer

needs, satisfaction and

welfare.

It is Producer- oriented.

Its main aim is to

increase sales and earn

more profits for

manufacturer or seller.

5. Approach to Profit It emphasizes on Profit-

maximization through

promoting customer

satisfaction.

It emphasizes on profit

maximization through

sales maximization.

6.Control Marketing Manager

works under the General

manager of Organization

Sales Manager works

under Marketing

Manager