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Sales Management Subject: SALES MANAGEMENT Credits: 4 SYLLABUS An Introduction to Sales Management Objectives and Scope of Personal Selling, Buyer Seller Dyad and Personal Selling Situation, Theories of Personal Selling, Personal Selling Process, Mistakes in Sales Sales Forecasting Prospecting, Sales Resistance, Closing Sales, Types of Personal- Selling Objectives, Analyzing Market Potential, Sales Forecasting Methods: Qualitative Methods, Quantitative Methods Organization and Management of Sales Force Functions of Salesperson, Qualities of Effective Sales Executive, Purpose of Sales Organization, Setting up a Sales Organization, Types of Sales Organization Structure, Centralization Versus Decentralization in Sales Force Management Controlling the Sales Effort Purpose of Sales Budget, Objective in Using Quotas, Procedure of Setting Quota, Limitations of Quota System, Concept of Sales Territory, Need for Establishment and Revision, of Sales Territory, Assignment of Sales Personnel to Territories, Importance of Customer Feedback By Sales Personnel Channels of Distribution and Strategy Marketing Channel, Types of Intermediaries, Contemporary Channel Scenario in India, Objective of Marketing Intermediaries, Function of Marketing Channel Channel Design Steps in Channel Design, Selection of Appropriate Channel, Channel Management, Channel Motivation Physical Distribution Physical Distribution concepts and objective, Components of Physical Distribution, Transportation, Warehousing, Impact of IT on Physical Distribution, Implication of Supply chain Management in Physical Distribution Suggested Reading: 1. Sales Management, Richant.R.Still, Edward.W .Gundiff and Norman.A.P.Govoni Prentice Hall of India. 2. Sales Management: Analysis and Decision Making, Ingram, Cengage Learning. 3. Sales & Distribution Management, Krishna K.Havaldar and Vasant. M. Cavall, TMH. 4. Fundamentals of Sales Management, “Ramneek Kapoor”, Macmillan. 5. Management of a Sales Force, “Spiro, Stanton and Rich”, TMH. 6. Sales Management: In the Indian Perspective, “Vaswar DasGupta”, PHI. SALES AND DISTRIBUTION MANAGEMENT (MBA) COURSE OVERVIEW This course pack is designed to help students learn about sales and distribution management concepts and how to apply them to solve business problems. Sales Management focuses on the activities of first line field sales managers. Modern Sales Management is a complex and disciplined mix of: professional selling and negotiation skills, people and Manage- ment skills ( including selection, motivation, Communicating and training). The coverage of the course pack deals with these topics in practical way. The importance of personal selling task and feedback system has been discussed. Companies are facing increasing competition, with threats to many traditional markets and customer bases, as supply and purchase points in many market segments become more concentrated. To tackle the threats and capitalize on opportunities the modern sales manager needs a far broader range of selling and managerial skills and experience than in past decades. In Distribution Management the channel design is discussed, the different components of distribution like transportation, Inventory, Warehousing has been covered. Course pack will enable students to understand Supply chain Management which has improved the efficiency in distribution. i SALES AND DISTRIBUTION MANAGEMENT SALES MANAGEMENT CONTENT Lesson No. Topic age No. Lesson 1 Objective and Scope of Personal Selling 1 Lesson 2 Buyer Seller Dyad and Personal Selling Situations 5 Lesson 3 Theories of Personal Selling 9 Lesson 4 Personal Selling Process 15 Lesson 5 Prospecting, Objection Handling and Closing 19 Lesson 6 Sales Forecasting-I 23 Lesson 7 Sales Forecasting-II 29 Lesson 8 Functions of Salesperson 34 Lesson 9 Purpose of sales Organisation 40 Lesson 10 Types of Sales Organisation Structure 44 Lesson 11 Recruitment Process 51 Lesson 12 Selection Process 57 Lesson 13 Training Objective Training methods 65 Lesson 14 Theories of Motivation 74 Lesson 15 Devising Compensation 81 Lesson 16 Types of Compensation Plans, Fringe Benefits 87 Lesspn 17 Standards of Performance Qualitative, Quantitative 93 Lesson 19 Evaluation and Control Through Action and Supervision 105 Lesson 20 Purpose of Sales Budget 109 Lesson 21 Objective in Using Quotas 114 Lesson 22 Procedure of Setting Quota, Limitations of Quota System 120 Lesson 23 Concept of Sales Territory 125 Lesson 24 Need for Establishment and Revision of Sales Territory 129 Lesson 25 Assignment of Sales Personnel to Territories 136 Lesson 26 Importance of Customer Feedback by Sales Personnel 142 iv Lesson 18 Recording of Actual Performance 99 RBS SALES MANAGEMENT 11.672.1 CONTENT Unit No. Lesson No. Topic Page No. Lesson 28 Robjective of Marketing Intermediaries 152 Lesson 29 Function of Marketing Channel 152 Lesson 30 Channel Design 158 Lesson 31 Selection of Appropriate Channels 166 Lesson 32 Channel Management 173 Lesson 33 Channel Motivation 179 Lesson 34 Physical Distribution concepts and objective 186 Lesson 35 Components of Physical Distribution 190 Lesson 36 Transportation 194 Lesson 37 Warehousing 197 Lesson 38 Impact of IT on Physical Distribution 200 Lesson 39 Implication of Supply Chain Management in Physical Distribution 204 v UNIT 1 INTRODUCTION TO SALES MANAGEMENT LESSON 1 UNIT 1 OBJECTIVE AND SCOPE OF PERSONAL SELLING Learning Objectives services backed up by supporting activities (help in doing • To know the broad objectives of sales management training dealer salesforce, local advertising, credit) and assurance that products and services are wise investments in competitive • Definition of sales management market place. • How a Sales executive acts as a coordinator Society looks to them to assure delivery of goods & services • To know about personal selling • that final buyers want at price In this lesson we will study about an overview of Sales • of increasing importance Management. Sales Managers today must develop an integrative manage- • to market products whose potential for damaging the ment style using adaptive, problem solving, extensive environment is minimal. information, in many cases is an ever changing market place. If goods and services made and sold are needed and accepted The overwhelming majority of business environment workers by buying public and if this products are socially responsible, are service providers such as investment bankers, consultants, then it is likely that management’s objectives will have been and information technology specialists. Sales Mangers in the achieved. Ultimately, a business’s earnings depend upon, how current business environment must have the ability to add well the interest of the firm, the final buyers and society are value, which means functional expertise in sales and marketing blended. To the extent that these interests are in harmony, the along with knowledge of industry. However managers must firm experiences Sales Volume, Net Profits and Business also have the skills to lead, communicate, use changing tech- Growth. nologies, build teams, motivate sales people, form strategic Sales Management as defined by alliance with customers. American Marketing Association — is Planning, direction and These are times of drastic corporate downsizing in which control of Personal selling including recruiting, selecting, sales orgranisations are expected to do more with less. Many equipping assigning, routing, internal and external changes in organizations have dictated the Supervising, paying and motivating as these task apply to need to conduct business differently. personal Salesforce. External business environment has experienced changing Sales Managers are responsible for organizing the sales effort, technology, globalization, more competition and more both within and outside their Companies. Within the Com- demanding and sophisticated customers. pany the Sales Manager builds formal and informal Internal changes have included greater emphasis on quality organizational structures that ensure effective communication levels in product and service output, faster communication not only inside the sales department but in its relations with channels and more educated, skilled employee base. other organizational units. The relationship between sales people and customer is changing Outside the Company, Sales Manager serves as a key contact faster than sales orders can be processed. Most remarkable is the with customers and other external publics and is responsible for fact that it is customers who are driving change. They are asking building and maintaining an effective distribution network. for, if not demanding better service from vendors. The shift Sales Managers have still other responsibilities. They are has radically changed the way selling is done. Companies are responsible for participating in preparation of information building relationships, improving technologies, processes and critical to the making of key marketing decisions, such as those systems along the way. on budgeting quotas and territories. Sales Management helps Sales Executive are professionals. The professional approach to respond proactively and effectively to customers, the key to requires thorough analysis, market efficient personal selling winning business and processing orders during the pre-sales, objectives, appropriate sales policies and personal selling order management and post shipment phases. strategy. Objectives of Sales Management Sales Executives have responsibilities to their Organization, From the Company