sales and distribution (2)

7/28/2019 Sales and Distribution (2)

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Sales managers are incharge of personal selling

Sales managers are incharge of personal selling

activity and their primary assignment is

activity and their primary assignment is

management of personal sales force.

management of personal sales force.

They are responsible for organizing the sales

They are responsible for organizing the saleseffort both within and outside their companies

effort both within and outside their companies

Within the company they build formal and

Within the company they build formal and

informal organizational structures ensuring

informal organizational structures ensuringeffective communications not only is sales

effective communications not only is sales

department but in its relation with other

department but in its relation with other

organizational

organizational Units

Units

Outside the company, they serve as a key

Outside the company, they serve as a keycontact with customers and other external

contact with customers and other external

publics and are responsible for building &

publics and are responsible for building &

maintaining an effective distribution network

maintaining an effective distribution network


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They are also responsible for participating in the

They are also responsible for participating in the

preparation of information critical to key

preparation of information critical to key

marketing decisions such as on Budgeting,Quotas

marketing decisions such as on Budgeting,Quotas

and Territories

and Territories

They participate , upto an extent , in decisions

They participate , upto an extent , in decisions

on products, marketing Channels and distribution

on products, marketing Channels and distributionpolicies , advertising and other promotion and

policies , advertising and other promotion and

pricing.

pricing.

Thus they are both an administrator in charge of

Thus they are both an administrator in charge ofpersonal selling activity and a member of

personal selling activity and a member of

executive group that makes marketing decisions

executive group that makes marketing decisions

of all types

of all types


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Thus we can say that Sales Management is a key

Thus we can say that Sales Management is a key

function in many kinds of enterprises..

function in many kinds of enterprises..

Objectives of Sales Management:

Objectives of Sales Management:

There are three general Objectives such as

There are three general Objectives such as

Sales Volume

Sales Volume

Contribution to profits

Contribution to profits

Continuous Growth

Continuous Growth


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Sales Executives make a substantial

Sales Executives make a substantial

contribution to reach these Objectives but

contribution to reach these Objectives but

ultimately it is the responsibility of the Top

ultimately it is the responsibility of the TopManagement

Management

Top Management delegates to Marketing

Top Management delegates to Marketing

management which then delagates to Sales

management which then delagates to Sales

Management ,sufficient authority to achieve

Management ,sufficient authority to achieve

these three general objectives

these three general objectives

In the process ,Objectives are translated to more

In the process ,Objectives are translated to more

specific goals that the company has reasonable

specific goals that the company has reasonable

chances of reaching

chances of reaching


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During the planning which precedes goalDuring the planning which precedes goal

setting,sales executive provides estimates onsetting,sales executive provides estimates on

market and Sales potential,the capabilities ofmarket and Sales potential,the capabilities of

sales force etc.sales force etc.

After finalizing the goals ,it is upto salesAfter finalizing the goals ,it is upto sales

executive to guide and lead sales personnel andexecutive to guide and lead sales personnel andmiddlemen who play critical roles inmiddlemen who play critical roles in

implementing the sales plansimplementing the sales plans

Sales Management is influential in chartingSales Management is influential in charting

course of future operationscourse of future operations


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It provides higher management withIt provides higher management with

informed estimates and facts for makinginformed estimates and facts for making

marketing decisions and for setting salesmarketing decisions and for setting sales

and profit goals.and profit goals.

The sales management appraisal ofThe sales management appraisal of

market opportunities leads to setting ofmarket opportunities leads to setting of

targets for sales Volume,gross Margintargets for sales Volume,gross Margin

and net profit in units of products and inand net profit in units of products and in

currency termscurrency terms

This along with benchmarks of growthThis along with benchmarks of growth

projected for sales and profits at specificprojected for sales and profits at specific


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Relationship Selling: The Buyers and theRelationship Selling: The Buyers and the

sellers who do business together have somesellers who do business together have some

type of business or working relationshipstype of business or working relationships

Their relationship have a range or spectrumTheir relationship have a range or spectrumgiven below as :given below as :

Transactional Relationship SellingTransactional Relationship Selling

Value added Relationship SellingValue added Relationship Selling

Collaborative or Partnering RelationshipCollaborative or Partnering Relationship

SellingSelling

Every relationship is an exchange of desiredEvery relationship is an exchange of desired

product/service in return to the moneyproduct/service in return to the money

The attitude and culture of an organizationThe attitude and culture of an organization

are reflected in the attitude and behaviour ofare reflected in the attitude and behaviour of

individual buyers and Sales personsindividual buyers and Sales persons

Relationship selling is done to createRelationship selling is done to create


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IIt means important customers needt means important customers need

continuous attention through partnering orcontinuous attention through partnering or

collaborative relationships.collaborative relationships.

Relationship selling is the tactical or actionRelationship selling is the tactical or actionoriented arm of relationship marketing.oriented arm of relationship marketing.

Companys best sales people are assigned toCompanys best sales people are assigned to

sell and service A class or major customers.sell and service A class or major customers. Both selling and Buying organizations workBoth selling and Buying organizations work

collaboratively to lower cost or increase valuecollaboratively to lower cost or increase value

The focus is on single Transaction in case ofThe focus is on single Transaction in case of

businesses having Low priced or low profitbusinesses having Low priced or low profit

products or services like seeing a movie in aproducts or services like seeing a movie in a

theatre or eating out in a Restauranttheatre or eating out in a Restaurant

This is known as Transaction oriented sellingThis is known as Transaction oriented selling


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IIn case of Value added exchange,the focus isn case of Value added exchange,the focus is

on the sales person understanding the curenton the sales person understanding the curent

and future needs of the customersand future needs of the customers After the purchase is made, the sales personAfter the purchase is made, the sales person

contacts the customer to find out if thecontacts the customer to find out if the

customer is satisfied and has any futurecustomer is satisfied and has any future

needsneeds

Such customer has medium Sales and profitSuch customer has medium Sales and profit

potentialpotential

For example Maruti Udyog sales& ServiceFor example Maruti Udyog sales& Servicecenter contacts the customer after a sale iscenter contacts the customer after a sale is

made.made.

sales and distribution (2)

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