presentation on SALES FORCE MANAGEMENT.pptx

sales force

1. SALES FORCE MANAGEMENT Dr Preeti Jain Assistant Professor, MMIM Maharishi Markandeshwar (Deemed to be) University, Mullana , Ambala, Haryana.

2. SALES FORCE MANAGEMENT   American Marketing Association (AMA) has defined sales management as “The planning, direction and control of selling personnel including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personnel sales force”. In simple words we can say that sales management is the process of developing a sales force, coordinating sales operations and implementing sales techniques that allows a business to achieve the sales target. Sales Force Management simply means managing the sales force to achieve the target sales.   Through Sales force management business owners plan the company staffing levels effectively and within budget. The company could ascertain the correct number of salespersons for the business, as well as the appropriate skill sets they require to meet company goals. Sales force management is a continuous process that ensures a business has the appropriate salespersons at all times.

3. NEED/IMPORTANCE OF SELECTION OF SALESMAN   A good salesman helps in increasing the customer base A company cannot engage with every customer. Salesperson are the people who negotiate with customers on behalf of company. Selecting required number of salesman helps the company to achieve the target sales quickly. To provide better services to every customer. The salesman acts as a catalyst and consultant to the customer by providing information and benefits of the products. He also works out the details, manner and timing of giving physical possession to the customer. The interaction between a buyer and a seller comprises a buyer-seller dyad. It is the effectiveness of communication between the salesperson and the customer during the sales process decides the success of the sales call. The salesman acts as a catalyst and consultant to the customer by providing information and benefits of the products. He also works out the details, manner and timing of giving physical possession to the customer.

4. 1.2 Objectives of Sales Management Quantitative Objectives (Short-term) 1. To retain and capture market share. 2. To determine sales volume in ways that contributes to profitability. 3. To obtain new accounts of given types. 4. To keep personal expenses within specified limits. Notes 5. To secure targeted percentage of certain accounts of business.

5. Qualitative Objectives (Long-term) 1. To do the entire selling job. 2. To service existing accounts, (customers). 3. To search and maintain customer cooperation. 4. To assist the dealer in selling the product line. 5. To provide technical advice wherever necessary. 6. To assist in training of middleman’s sales personnel. 7. To provide advice and assist the middlemen. 8. To collect and report market information of interest and use to the company management.

6. 1.5 Key Decision Areas in Sales Management Important decision areas in sales management are deciding upon: 1. The type and quality of sales personnel: By this we mean that whether the sales person is a product specialist or a market specialist or both. A product specialist is needed for technical or for pharmaceutical products. A market specialist must be aware of market characteristics and various markets. 2. The size of sales force: It is important because if we have more sales personnel, then we are incurring more expenditure. Therefore, the number of sales person should be optimal. To find the optimal size there are three methods: (a) Work Load Method (b) Incremental Method (c) Sales Potential Method.

7. 3. The organisation and design of sales department: There are three types of organisations : (a) Functional Organisation (b) Management Organisation (c) Territorial Organisation. Which type of organisation to follow will depend on our choice. 4. The territory design: There are a number of ways to design a territory. (a) Clover Leaf design of territory: Here the territory is designed in the form of a clover leaf. (b) Hop Scotch Method: Here the territory is designed in the form of spokes which radiate form the hub (residence). 5. The recruitment and training procedure: This deals with recruitment and training of the people. The recruitment could be within or outside the organisation . Similarly, training could be on the job training, off the job training and classroom training.

8. 6. The task allocation: Tasks are allocated depending upon the capabilities and capacities of the sales personnel. 7. The compensation of sales force: Compensation includes salary benefits, profits and perks. Demographic characteristics are taken into account for this. Then there are fringe benefits also. 8. The performance appraisal and control system: It is important to know how much work is being done by the sales personnel. To facilitate this, appraisal systems are devised. 9. The feedback mechanism to be adopted: Feedback is taken from sales personnel, dealers and consumers about product and sales. On the basis of this feedback, planning is done. 10. Managing channel relationship: We not only decide on selection of channels but also decide how it is going to be managed. 11. Coordinating with other marketing departments: A sales personnel can’t work alone. He has to take help from all the other departments.

9. 1.6 Sales Management Cycle A sales manager looks after and manages a firm’s personal selling functions. Sales management deals with analysis, planning, organising , direction and control of the company’s selling activities.

10. Analysis Notes This involves probing into the sales records of the company, analysing the reports of sales people, investigation of marketing trends and other environmental factors. Planning It involves setting objectives of the firm’s sales efforts, formulation of sales strategies and policies in order to achieve those objectives. Organisation It involves determination of the structure of the sales force and delegation of authority which is supposed to be necessary to achieve the organisation’s objectives. Direction It involves proper supervision and implementation of the plans with the help of proper communication, motivation and leadership. Control It involves comparison of the actual with the desired results, finding out reasons for deviation and taking corrective actions accordingly.

11. The Role of the Sales Force Personal selling is the interpersonal arm of the promotion mix. Advertising consists largely of nonpersonal communication with large groups of consumers. By contrast, personal selling involves interpersonal interactions between salespeople and individual customers—whether face-to-face, by telephone, via e-mail, through video or Web conferences, or by other means. Personal selling can be more effective than advertising in more complex selling situations. Salespeople can probe customers to learn more about their problems and then adjust the marketing offer and presentation to fit the special needs of each customer.

12. Linking the Company with Its Customers The sales force serves as a critical link between a company and its customers. In many cases, salespeople serve two masters: the seller and the buyer. First, they represent the company to customers . They find and develop new customers and communicate information about the company’s products and services. They sell products by approaching customers, presenting their offerings, answering objections, negotiating prices and terms, and closing sales. In addition, salespeople provide customer service and carry out market research and intelligence work.

13. Coordinating Marketing and Sales Ideally, the sales force and other marketing functions (marketing planners, brand managers, and researchers) should work together closely to jointly create value for customers. Unfortunately, however, some companies still treat sales and marketing as separate functions. When this happens, the separate sales and marketing groups may not get along well. When things go wrong, marketers blame the sales force for its poor execution of what they see as an otherwise splendid strategy. In turn, the sales team blames the marketers for being out of touch with what’s really going on with customers. Neither group fully values the other’s contributions. If not repaired, such disconnects between marketing and sales can damage customer relationships and company performance. A company can take several actions to help bring