412_33_powerpointslides_Chapter1 of mkt1.ppt

mkt

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Sales and Distribution Sales and Distribution
Management 2eManagement 2e
Tapan K. PandaTapan K. Panda
Sunil SahadevSunil Sahadev

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Chapter 1Chapter 1
Introduction to Sales Introduction to Sales
ManagementManagement

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Learning Objectives
To understand the concept of sales management
To discuss the evolution and history of sales management
To explain the importance and functions of sales management
To understand the sales management process
To get an overall idea of current trends in sales management

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Personal selling strategies
Top ten qualities of an industrial seller:
1.Willingness to go to bid for the buyer within the supplier firm
2.Thoroughness and follow through
3.Knowledge of the sales person’s product line
4.Market knowledge and keeping the buyer posted
5.Applying his product and services to buyer’s needs
6.Knowledge of the buyer’s product line
7.Preparation for sales calls
8.Regularity of Sales calls
9.Diplomacy in dealing with operating departments
10.Technical education

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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

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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

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Types of personal selling
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

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Types of selling
Order taker sales people
Inside order takers – retail sales assistants
Delivery salespeople – deliver products to customers
Outside order takers – respond to customer calls
Order creators
Missionary salespeople – persuade customers to promote a
seller’s brand

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Types of personal selling
Order getters
Set of people who persuade customers to make a direct purchase
• Organizational salespeople
• Consumer salespeople
• Technical support salespeople
• Merchandisers

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Types of personal selling

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Differences between Selling and Marketing
No.Selling Marketing
1Emphasis on product Emphasis on consumer needs and wants
2Company 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
3Management is sales-volume oriented Management is profit-oriented
4Planning is short-term-oriented , in terms of
today’s products and markets
Planning is long-term oriented, in terms of new
products, tomorrow’s markets, and future growth
5Stresses needs of a seller Stresses need and wants of buyers
6Views business as a goods producing processViews business as consumer satisfying process
7Emphasis 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
8Different 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
9Cost determines price Consumers determine price, price determines cost
10Selling views customer as the last link in businessMarketing views the customers as the very beginning
of a business

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Concepts – Selling and Marketing
Starting
point
Focus Means Ends
Factory Factory Selling and Profits through

promoting sales volume
Starting
point
Focus Means Ends
Market Customer Coordinated Profits through
marketing customer satisfaction
Selling Concept
Marketing Concept

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Marketing exchange process
Market anticipation
Exchange offer of value
Marketing mix
•Product
•Price
•Place
•Promotion
Producer/
marketer
Consumer

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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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Emerging trends in sales management