introduction to sales management chapter-1

8/12/2019 Introduction to Sales Management Chapter-1

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Oxford University Press 2012. All rights reserved.

Chapter 1

Introduction to SalesManagement


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Sales management is the attainment of sales force goals in an effective

manner through planning ,staffing, training, leading and controlling

organization resources.

Efforts put forth to attain a companys sales objectives.

Sales management can involve any of the following activities:

(1) formulation of sales strategy through development of accountmanagement policies, sales force compensation policies, sales revenue

forecasts, and sales plan,

(2) implementation of sales strategy through selecting, training,

motivating, and supporting the sales force, setting sales revenue targets,and

(3) sales force management through development and implementation

of sales performance, monitoring, and evaluation methods, and analysis

of associated behavioural patterns and costs.


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Evolution of personal selling

Persuasion

Negotiation

Consultative

selling

Business

management

Partnership

strategies


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Marketing concepts

The five different marketing concepts:1. Production concept

2. Product concept

3. Selling concept

4. Marketing concept

5. Societal concept


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Societal marketing concept


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Nature and role of sales management

Specific duties and responsibilities of a sales manager:

The determination of sales force objective and goals

Sales force organization, size, territory, and quota finalization

Sales forecasting and budgeting

Sales force selection, recruitment, and training

Motivating and leading the sales force

Designing compensation plan and control systems

Designing career growth plans and building relationship strategies with key

customers

Integration of technology with sales function

Augment the sales force by augmenting the sales-closing process


7/18 Oxford University Press 2012. All rights reserved.

Personal selling strategies

Top ten qualities of an industrial seller:

1. Willingness to go to bat

for the buyer within the supplier firm

2. Thoroughness and follow through

3. Knowledge of the sales persons product line

4. Market knowledge and keeping the buyer posted

5. Applying his product and services to buyers needs

6. Knowledge of the buyers product line

7. Preparation for sales calls8. Regularity of Sales calls

9. Diplomacy in dealing with operating departments

10.Technical education



Types of personal selling

Industrial selling (or B-2-B Selling)

Four categories are:

1. Selling to resellers

2. Selling to business users

3. Institutional selling

4. Selling to governments




Retail selling

Selling to the ultimate consumers for personal or non-

business use or consumption

Services selling

Basically activities or benefits provided to consumers

Services are intangible in nature

Cannot be standardized



Types of selling

Order taker sales peopleInside order takersretail sales assistants

Delivery salespeopledeliver products to customers

Outside order takersrespond to customer calls

Order creators

Missionary salespeoplepersuade customers to promote a

sellers brand




Order gettersSet of people who persuade customers to make a direct purchase

Organizational salespeople

Consumer salespeople

Technical support salespeople

Merchandisers



Differences between Selling and Marketing

No. Selling Marketing

1 Emphasis on product Emphasis on consumer needs and wants

2 Company manufactures the product first and then

decides to sell it

Company first determines customers needs and wants

and then decides on how to deliver a product to satisfy

these wants

3 Management is sales-volume oriented Management is profit-oriented

4 Planning is short-term-oriented , in terms of

todays products and markets

Planning is long-term oriented, in terms of new

products, tomorrows markets, and future growth

5 Stresses needs of a seller Stresses need and wants of buyers

6 Views business as a goods producing process Views business as consumer satisfying process

7 Emphasis on staying with existing technology and

reducing costs

Emphasis on innovation in every sphere, on providing

better value to the customers by adopting a superior

technology

8 Different departments work as highly separate

watertight compartments

All departments of a business operate in an integrated

manner, the sole purpose being generation of

consumer satisfaction

9 Cost determines price Consumers determine price, price determines cost

10 Selling views customer as the last link in business Marketing views the customers as the very beginning

of a business



ConceptsSelling and Marketing

Startingpoint

Focus Means Ends

Factory Factory Selling and Profits through

promoting sales volume

Starting

pointFocus Means Ends

Market Customer Coordinated Profits through

marketing customer satisfaction

Selling Concept

Marketing Concept



Marketing exchange process

Market anticipation

Exchange offer of value

Marketing mix Product

Price

Place

Promotion

Producer/

marketerConsumer



Sales management process

Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance


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THE SALES

MANAGEMENT PROCESS


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Emerging trends in sales management

introduction to sales management chapter-1

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