SALES MANAGEMENT Edited by Dr

) Edited by: Dr. Pavitar Parkash Singh SALES MANAGEMENT Edited By Dr. Pavitar Parkash Singh Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for Lovely Professional University Phagwara SYLLABUS Sales Management Objectives: The purpose of this course is to familiarise students with the principles, strategies and skills of selling and managing the selling function. This course also provides an understanding of the tools and techniques necessary to effectively manage the sales function, the sales organization and the sales individual. Sr. No. Description 1. Introduction to Sales Management and Personal Selling, Personal Selling Career Opportunities 2. Personal Selling: Preparation and Process 3. Setting Personal: Selling Objectives, Determining Sales related Marketing Policies, Formulating Personal Selling Strategies 4. Organising Sales Effort-role of Sales Executive, Sales Organization Structures: Sales Department Relations, Distributive-Network Relations, Sales Force Management – Sales Personnel Management, Recruiting and Selecting Sales Personnel planning 5. Executing and Evaluating Sales Training Programme, Motivating Sales Personnel, Compensating Sales Personal 6. Managing Sales Personnel: Managing Expenses, Sales Meeting and Sales Contest. 7. Controlling the Sales Effort: The Sales Budget, Quotes, Sales Territories, Sales Control and Cost Analysis, 8. Evaluating ad Supervising Sales Personnel Performance 9. Building long-term Partnership through CRM 10. International Sales Management CONTENT Unit 1: Introduction to Sales Management 1 Ashwani Panesar, Lovely Professional University Unit 2: Personal Selling 15 Ashwani Panesar, Lovely Professional University Unit 3: Process of Personal Selling 30 Ashwani Panesar, Lovely Professional University Unit 4: Sales Strategy Formulation 44 Ashwani Panesar, Lovely Professional University Unit 5: Sales Organisation 58 Hitesh Jhanji, Lovely Professional University Unit 6: Recruitment of Sales Personnel 77 Hitesh Jhanji, Lovely Professional University Unit 7: Selection and Placement of Sales Personnel 89 Hitesh Jhanji, Lovely Professional University Unit 8: Training of Sales Personnel 102 Hitesh Jhanji, Lovely Professional University Unit 9: Motivating and Compensating Sales Personal 115 Hitesh Jhanji, Lovely Professional University Unit 10: Managing Sales Personnel 143 Pavitar Parkash Singh, Lovely Professional University Unit 11: Controlling the Sales Effort 160 Pavitar Parkash Singh, Lovely Professional University Unit 12: Customer Relationship Management 185 Pavitar Parkash Singh, Lovely Professional University Unit 13: Sales Personnel Performance 197 Pavitar Parkash Singh, Lovely Professional University Unit 14: International Sales Management 210 Pavitar Parkash Singh, Lovely Professional University Ashwani Panesar, Lovely Professional University Unit 1: Introduction to Sales Management Unit 1: Introduction to Sales Management Notes CONTENTS Objectives Introduction 1.1 Marketing Sales Management 1.2 Objectives of Sales Management 1.3 Exchange Process 1.4 Interdependence of Sales and Distribution 1.5 Key Decision Areas in Sales Management 1.6 Sales Management Cycle 1.7 Responsibilities of a Sales Manager 1.8 Summary 1.9 Keywords 1.10 Review Questions 1.11 Further Readings Objectives After studying this unit, you will be able to: Define exchange process; Discuss about decision areas in sales management; State the difference between marketing and sales management; Describe the evolution of sales department. Introduction Before the industrial revolution the marketing task was relatively simple because the economic scene was dominated by small scale enterprises. The only problem was to produce goods for consumers which were sold out without any difficulty. Selling the goods was no problem. In fact, all phases of the business operations, including manufacturing and selling, were generally supervised by one individual and more attention was paid to manufacturing problems rather than the marketing problems. The importance of marketing problems was realised only after the industrial revolution which started in England in 1760 and immediately thereafter in United States. The American revolution, necessitated the need for finding out untapped markets because the nearby markets were unable to absorb the increased quantities of manufactured goods. This gave a lot of importance to marketing activities. With the increase in production more land, labour and capital was required which gave rise to corporate form of organisations. There were bigger organisations which required more delegation of powers in manufacturing and administration. Thus, the sales department was given importance and it became a separate functional department. LOVELY PROFESSIONAL UNIVERSITY 1 Sales Management Notes As the business activity became more complex and dynamic, the term “sales management” changed due to the changes in business operations. Earlier the sales management was solely concerned with the direction of the sales force personnel. However, at present the term “sales management” has a broader significance and includes all such marketing activities as advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising. 1.1 Marketing Sales Management Marketing, sales management and marketing management are closely related to each other. Generally marketing denotes the process through which the goods/services are transferred to customers for monetary consideration. It is the performance of business activities that directs the flow of goods from the producer to the consumer and so it is viewed from the customers point of view. Every attempt is made under marketing to provide maximum satisfaction to customers. It starts with the needs of the consumers and ends with their satisfaction. On the other hand, the term “sales management” is used by businessman to refer to the direction or supervision of salesmen. But in the present business scenario, it has included other aspects of management also, such as planning, direction, control of personnel selling, including recruiting, selecting, equipping, supervising, paying and motivating, etc., for they directly apply to sales force. Marketing management is a broader concept and sales management is a part of marketing management. Whereas marketing is concerned with the product, price, promotion, distribution, target market, planning and implementation and control of these activities, the sales management is only a sub-function of marketing management and is mainly concerned with the planning, direction and control of the sales force. Sales force are found in both profit and non-profit making organisations. Everyone lives by selling something. Selling is one of the oldest professions. Today’s selling executives are professionals. They plan, build and maintain effective organisations and design and utilise efficient control procedures. This requires a thorough analysis of quantitative and qualitative personal selling objectives, formulation of sales policies and selling strategy. Top management holds them responsible for: 1. Achieving an adequate volume of sales. 2. Providing maximum contribution to profit. 3. Experiencing continuing growth. Although these objectives are included under sales management, sales managers cannot be held solely responsible for accomplishing or achieving them. Although they make major contributions, the top management bears the final responsibility because it is accountable for the success or failure of the entire enterprise. In fact it is the responsibility of top management to ensure the supply of goods/services to the final buyers at satisfactory prices. The above mentioned objectives are accomplished after following a pre decided sales strategy. The top management delegates the required authority to marketing management to execute these strategies, which in turn delegates it to sales management. During this process the objectives are broken down in goals which are more specific in nature. These goals are finalized while planning and then sales manager is given sufficient power and autonomy in guiding and leading the sales personnel and middlemen who play a vital role in implementing the sales plans. As far as the contribution to profits is concerned, generally these two basic formulas are followed: Sales – Cost of Sales = Gross margin 2 LOVELY PROFESSIONAL UNIVERSITY Unit 1: Introduction to Sales Management Gross Margin – Expense = Net Profit Notes Sales management ensures the success of this formula. Reduction in cost or expense and increase in sales or gross margin, both depend upon how efficient the sales department is. Unless its performance is satisfactory on grounds of efficiency and skills, the company cannot maximise its profits. The third objective is experiencing continuing growth. This is very important from the viewpoint of top management because it formulates plans and strategies. As the sales management remains directly connected with consumers and markets, it keeps a hand on the market pulse. It can experience the pace of growth and informs the top management, so that top management can take corrective actions if necessary. Example: Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in “safety”, whereas BMW has traditionally positioned its brand to be perceived as the leader in “performance.” Caselet Irregular Supplies t was the early 1930s, when a physician-turned textile

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