Introduction to Sales Force Management.pptx

Introduction to Sales Management

1. INTRODUCTION TO SALES MANAGEMENT

2. Sales executives are seen as professionals in organizations today. They plan, build, and maintain effective organizations and design and utilize efficient control procedures. The professional approach requires thorough analysis, market-efficient qualitative and quantitative personal-selling objectives, appropriate sales policies, and personal-selling strategy. Sales executives have responsibilities to their organizations, the customers, and society. Top management holds them responsible for obtaining sales volume, providing profit contributions, and continuing business growth. INTRODUCTION

3. The customers expect them to supply easily resalable products and services, backed up by supporting activities and assurance that the products and services are wise investments in the competitive marketplace. Society looks to them to assure the delivery of goods and services that final buyers want at prices that buyers are willing to pay. If the goods and services made and sold are needed and accepted by the buying public, then it is likely that management's objectives will have been achieved. When the interests of the firm, the consumer, and society are achieved the firm experiences sales volume, net profits, and business growth. INTRODUCTION

4. Prior to the Industrial Revolution, small-scale enterprises dominated the economic scene, and selling was no problem. Concern was to produce more. Easy orders. Major problems associated with manufacturing. Selling and other marketing activities were handled on part time basis. With industrial revolution, large scale production started which actually exceeded the current demand. This makes companies to look into new markets for selling. Other business problems were still important than selling such as hiring of workers, land acquisition for building, machinery. For these activities, large amount of capital had to be raised. This resulting corporate form of business with separate functional department. EVOLUTION OF SALES DEPARTMENT

5. Sales departments were set up only after the activation of manufacturing and financial departments. New departments are being created for the performance of specialized marketing tasks. Marketing activities today are carried on not only by the sales department, but by such departments as advertising, marketing research, export, sales promotion, merchandising, shipping, credits and collections. In spite of this growing' fragmentation of Marketing operations, the sales department still occupies a strategically important position. Businesses rely upon their sales departments for the inward flow of income. It has been said that the sales department is the income-producing division of business. EVOLUTION OF SALES DEPARTMENT

6. “Sales management" originally referred exclusively to the direction of sales force personnel. The American Marketing Association has now defined sales management as “The planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying, and motivating as these tasks apply to the personal salesforce." The American Marketing Association's definition made sales management equal to management of the sales force, bur modem sales managers have considerably broader responsibilities. DEFINITION

7. Objectives of sales are made on the basis of position of organization in the market, and the goals of management. It is a joint effort of top management, sales managers and marketing managers. Achieving Sales volume Contribution for earning profit Rapid growth of Organization Financial Results OBJECTIVES OF SALES MANAGEMENT

8. Sales management helps in developing right product, setting up the best optimum price and right distribution which includes all the methods of promotion mix and providing services to the consumers and managing efforts of selling. Setting of goals Monitoring Performance of Sales Improving Development of Product Optimizing Distribution Decisions regarding Finance Improving quality of sales personnel IMPORTANCE OF SALES MANAGEMENT

9. Sales managers are in charge of personal-selling activity, and their main job is management of the personal sales force . Sales managers are now also responsible for organizing the sales effort , both within and outside their companies. Within the company, the sales manager builds formal and informal organizational structures that ensures effective communication not only inside the sales department but in its relations with other departments. Outside the company, the sales manager serves as a key contact with customers and is responsible for building and maintaining an effective distribution network . They are responsible for participating in the preparation of information critical to the making of key marketing decisions, such as those on budgeting, quotas, and territories . They participate in decisions on products, marketing channels and distribution policies, advertising and other promotion, and pricing . Thus, the sales manager is both an administrator in charge of personal selling activity and a member of the executive group that makes, marketing decisions of all types. ROLE OF SALES MANAGER

10. From the company viewpoint, there are three general objectives of sales manager: sales volume, contribution to profits, and continuing growth. Sales executives do not have the total responsibility to reach these objectives, but they make major contributions. Top management has the final responsibility, because they were accountable for the success or failure of the entire enterprise. Top management delegates to marketing management, which then delegates to sales management, sufficient authority to achieve the three general objectives. OBJECTIVES OF SALES MANAGER

11. In the process, objectives are translated into more specific goals . For goal setting, sales executives provide estimates on market and sales potentials, the capabilities of the sales force and the middlemen. Once these goals are finalized, sales executives guide and lead the sales personnel and middlemen who play critical roles in achieving the selling plans. Sales management is also involved in planning the course of future operations. It provides higher management with information, for making marketing decisions and for setting sales and profit goals. Based on sales management's estimate of market opportunities, targets are set for sales, volume, gross margin, and net profit in units of produce and in rupee value, with benchmarks of growth projected for sales and profits at specific future dates. Whether or not these targets are reached depends upon the performance of sales and other marketing personnel. OBJECTIVES OF SALES MANAGER

12. SALES MANAGEMENT AND FINANCIAL RESULTS Sales management and financial results are closely related. Financial results are stated in terms from two basic accounting formulas: 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, and these are the major determinants of net profit. The cost-of-sales factor cannot be affected directly by sales management, but it can be affected indirectly since sales volume must be large enough to permit maintenance of targeted unit costs of production and distribution. The company maximizes its net profits if it obtains an optimum relationship among the four factors. Sales management, both in its planning and operating roles, aims for an optimum relationship among the three factors it can directly affect: sales, gross margin, and expenses. Sales management works with others (such as those in charge of production and advertising) to assure that sales volume is sufficient to attain targeted cost of sales, the fourth factor.

13. Optimum marketing performance in terms of sales volume, net profits, and long-term growth requires coordination, and sales management has to play a significant role in coordinating. Sales executives have responsibilities for coordination involving (1) the organization, (2) the planning, and (3) other elements in the marketing strategy. SALES MANAGEMENT AND ORGANIZATIONAL COORDINATION

14. Sales Management has to coordinate personal selling efforts with the marketing efforts of the middlemen. Among the most important aspects are:- Gaining Product Distribution Obtaining Dealer Identification Reconciling Business Goals, and Sharing Promotional Risks COORDINATION WITH DISTRIBUTIVE NETWORK

15. Sales Management Controls the personal-selling effort of the organization. The purpose is to sure that sales department objectives are reached. Sizing up the situation - Reviewing the personal-selling objectives of the firm by answering Where are we now? How did we get here? Where are we going? How do we get there? Setting quantitative performance standards Gathering and processing data on actual performance Evaluating performance Action to correct controllable variation. Adjusting for uncontrollable variation SALES MANAGEMENT AND CONTROL

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