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Module 1 _ Session 2
SALES MANAGEMENTSALES MANAGEMENT
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“Sales Management is the mostcritical activity and the mostdifficult function in an organization.
It is like fuel to an engine.”
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“You can take away my money and take awaymy factories, but leave me my sales staff and I’ll be back where I was in two years.”
– Andrew Carnegie
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Sales Management
"The planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising,paying and motivating as these tasks apply to personal salesforce." - The American Marketing Association defines Sales Management
Sales management is attainment of an organization's sales goals in an
effective & efficient manner through planning, staffing, training,leading & controlling organizational resources.
Sales management is systematic process involving: (1) formulation of sales strategy through development of account management 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 andimplementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs.
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Role of Selling
Continuously monitor change in externalenvironment
Sharing of information with other departments
Identifying potential prospects, qualifying anddeveloping long term relationship
Retaining existing customers
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How do you identify customers?
How do you approach a potential customer?
How do you convince or develop interest inyour product?
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The Competitive Advantage
The Physical product itself (Competitive features & benefits)
The Deal
(Terms, credit, availability, delivery,installation, ongoing support & applications)
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Why do you lose existing accounts tocompetitors?
What can you do to strengthenrelationships with your existing
customers? What factors might get in the way of
achieving these goals?
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Death of the Salesman – Arthur Miller
Cold calling / Door knocking / door-to-door selling?
Product & services?
Prospect / customer / consumer
Sale Gestation period (time from enquiry to sale) /Lead Time (from order to delivery)
Profit margin (SP – Cost) / Mark-up (Cost + Profit)
Customers, consumers, prospects?
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Nature of Sales Managementv Crucial function of an organization
v Only revenue generating function in theorganization
v Contribute to Profits
v Helps in attaining long term growth
v Selling helps an organization achieve its businessgoals.
v Integration with marketing management
i. Field Selling – Personal selling
ii. Head-quarter marketing team – Promotion,Marketing research, Marketing Logistics,Customer service, Coordination
v Relationship Selling
i. Transactional Selling
ii. Value-added relationship Selling
iii.Collaborative Partnering Relationship Selling
v Varying Sales Positions & Responsibilities
v
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Essence of Sales Management
er is the Boss – “Yesterday, Today & Tomorrow”Customer is Profit – Everyone else is Overhead
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Scope of Sales Management
Strategic
Tactical
Operational
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A Changing Market Place
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International Considerations
Ethnic Composition
Religious Orientation
Social Class Environment
Education
Gender Bias
Differences in Negotiation styles Differences in decision making
Job Status and Company Protocol
Perceptions of time
Personal Relationships
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Objectives are Decided
Strategies are formulated
Delegation to Salesman
Time bound Goals
Achievement
Role of Sales Manager
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Responsibilities of a Sales Manager
Understanding the economic structure of the industry
Identifying segments within your market
Identifying your target market
Identifying your best customer in place
Undertaking market research to develop Profiles (demographic,psychographic and behavioural) of your core customer
Understanding your competitors and their products. Developing new products
Undertake environmental scanning mechanism to detect opportunities andthreats.
Understanding your company’s strengths and weaknesses
Auditing your customers’ experience of your brand Developing marketing strategies for each marketing mix.
Creating a sustainable competitive advantage
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Objectives of Sales Management
Quantitative Objective Sales Revenue Profits Market Share Controlling Internal Costs To obtain new accounts - Sales To retain & capture market share –
Market Share To increase sales volume - Revenue To determine sales volume that
contributes to profitability - Profits
Qualitative Objective Provide technical advice to
customers Provide training to middleman’s
sales personnel Collect & report relevant market
information to themanagement
Maintain customer relationship Sales team successfully delivers
the company’s value proposition, brand strategy
and message
By keeping expenses low
For sustainable
competitive advantage
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Difference between sales and Marketing
Marketing and sales are close relatives. Marketing sets thescene. Sales finish the job. When all else is said and done,marketing is part of the sales process. Sales is the end result of marketing.
Sales is a part of marketing. It is the transfer of title of ownership of goods.
Marketing is concept oriented and sales is product oriented.
Marketing function creates the dark function and salesfunction craft the rain.
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Benefits of Effective Sales Management
Higher quality and professionalism.
Easier sales.
Less turn over.
Bigger and better clients and accounts. Greater market share.
Increased pride and confidence.
More revenues and more profits.
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Challenges to Sales Management
vLarge No. of prospects
vDispersed prospects
vHigh Cost of sales
vLow revenue per customer
vIneffective channel sales team.
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Responsibilities of Sales Management
Building the right sales strategy
Hiring the right team
Creating the right compensation plans,territories and quotas
Setting the right projections
Motivating your team
Tracking revenue against goals
Resolving conflicts
Training and coaching sales reps Managing processes
Getting the sale!
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Sales Management Process
Disqualify
DUTIES OF THE SALES MANAGER
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DUTIES OF THE SALES MANAGER
Holds a unique position in the sales organisation. Plans, organises, directs, staffs & coordinates whole sales organisation. He is the person who steers the wheels of sales organisation. His status and power depends on the size of the organisation
in his charge. In small firms the general manager or managing director performs this duty. But in big manufacturing firms there usually a sales manger.
In giant sized companies for some territories and/or products sales managers are appointed. Whatever the position of the sales manager, he is the guiding and driving force of the sales organisation
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Holds a unique position in the sales organisation.
Plans, organises, directs, staffs & coordinates whole sales
organisation.
He is the person who steers the wheels of sales organisation.
His status and power depends on the size of the organisation in
his charge.
In small firms the general manager or managing director
performs this duty.
But in big manufacturing firms there usually a sales manger.
In giant sized companies for some territories and/or products
sales managers are appointed.
Whatever the position of the sales manager, he is the guiding
and driving force of the sales organisation
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Sales Strategies
SalesObjectives /Goals
MarketingStrategy
SalesforceStrategy
SalesforceTactics(Action Plans)
Increase
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SALES FUNNEL
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Why Sales so Important
sales team is the voice of your company The sales team will make or break your marketing
efforts. Sales and marketing serve one purpose: to
generate revenue. The sales team does a great job delivering the
company’s value proposition, brand strategy andmessages.
sales team is a revenue machine.
Sales – cost of sales = gross margin Gross margin – expenses = net profit Sales, gross margin and expenses are affected by
the caliber and performance of sales management
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Adaptive Sales Management Strategic Planning: Areas of focus and activity are centrally
defined at the SAM Server by Management. Sales,marketing and product management can define customer call routes, key call objectives, campaign activities,competitor intelligence, Plano-grams and sales best
practices etc. Product and pricing information is loadedand synchronised as required with other systems.
Tactical Planning: Field representatives digest the informationthat Management has pushed out to them through SAM and
plan their days accordingly.
In-Field Execution: Field representatives use SAM in the fieldto make well organised and highly focused calls. Fieldactivities are aligned with corporate strategies and allowfocus to be on selling, relationship building, and customer service. SAM is also a sales and communication tool, withimportant news, presentations, product information and
advertisements being instantly available for viewing withthe customer.
Market Intelligence: While in the call, field representativesgather important customer and market information, this can
be through the use of surveys, merchandising, ranging etc
Information Exchange: As frequently as necessaryinformation is sent to/synchronised with the SAM server tofacilitate collaboration with other workers and provideinformation for analysis and reporting.
Rapid Information Analysis: SAM Analytics is a complete
Business Intelligence tool, that allows information to bereported, analysed and interpreted in a fast efficient manner by the appropriate person/s within the company.
Strategic Planning begins the cycle again, but with theopportunity to improve effectiveness, adapt to market /competitive forces and ultimately enhance the entire sales
process for increased sales and a markedly improvedcustomer experience.
