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1. Sales & Distribution Management
Module: 1
Dr. Saurabh Mishra
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2. Meaning of Sales
•Sales typically refer to the activities
involved in selling goods or services in
exchange for money. It is a crucial aspect
of business and commerce, as it directly
contributes to revenue generation. Sales
encompass a wide range of activities,
including prospecting, lead generation,
pitching, negotiation, and closing deals.
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3. Definitions of Sales
Management
•Sales management involves 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 sales
force." (Source: "Marketing Management" by Philip
Kotler)
• "Sales management is a process of developing
relationships, discovering needs, matching the
appropriate products with these needs, and
communicating benefits through informing, reminding, or
persuading." (Source: "Marketing" by C. H. Sandage
and F. E. Stanton)
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4. Personal Selling
•"Personal selling is the personal or impersonal
process of assisting and/or persuading a
prospective customer to buy a commodity or a
service or to act favorably upon an idea that
has commercial significance for the seller.“
•American Marketing Association (AMA)
•"Personal selling is the oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making sales.
This type of selling is sometimes called oral
sales presentation or oral sales
communication.“
•Philip Kotler
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Nature of
Personal
selling
Direct
Communication
Two-Way
Communication
Relationship
Building
Customization Flexibility
Immediate
Feedback
High
Involvement
Goal-Oriented

6. Personal Selling in Marketing Mix
Product
Sales representatives use personal selling to provide detailed information about the
product's features, advantages, and benefits. They can tailor their presentations to
highlight specific aspects that resonate with individual customers.
Price
Salespeople can explain the value proposition of the product or service, justify the
price, and address any concerns or objections related to pricing. They may also have
the flexibility to negotiate and discuss pricing options based on customer needs.
Place
Personal selling can be conducted in various places, including retail environments,
trade shows, or directly at the customer's location. Sales representatives play a crucial
role in ensuring the product is available where the target audience can access it.
Promotion
Personal selling is a direct promotional tool. It involves the face-to-face interaction
between a salesperson and a potential customer. Sales representatives use personal
communication to build relationships, address customer needs, and persuade
individuals to make a purchase.

7. Dimensions of Sales Management
Organizational
Sales structure,
Team
Alignment,
Performance
Management,
Compensation
plans.
Strategic
Sales goals,
Competitive
Analysis, Market
Segmentation,
Channel
selection
Operational
Sales process,
Lead
Generation,
Customer
Relationship
Management
(CRM),
Forecasting,
Reporting.
Technological
Sales
Automation
Tools, Data
Analytics, Social
media,
E-commerce
platforms.
Human
Team
Motivation,
Coaching and
development,
Communication,
Ethics, Diversity
and Inclusion.

8. Sales Management Environment
Internal
Environment
•Culture
•Structure:
•Processes
•Technology
•Resources
External
Environment
•Market
•Customer
•Competition
•Economic and
Regulatory
factors
Organizational
Dynamic
•Leadership
•Teamwork
and
Collaboration
•Motivation and
Performance
•Learning and
Development
Others
•Size and Age
of the
organization
•Industry and
Product

9. Internal Environment
Culture
•Is it competitive, collaborative, or something else? How
supportive is it of learning and growth?
Structure
•Is it centralized or decentralized? How aligned are
sales, marketing, and other departments?
Processes
•Are they well-defined, efficient, and flexible? Do they
support data-driven decision making?
Technology
•What tools and systems are used to manage
leads, track sales, and analyze data?
Resources
•Are there adequate financial, human, and technological
resources to support the sales team?

10. External Environment
What is the size, growth, and competitive landscape of the
target market? Are there any disruptive trends or
technologies affecting the market?
Market
Who are the ideal customers? What are their needs, buying
behaviors, and expectations?
Customer
Who are the main competitors? What are their strengths
and weaknesses?
Competition
How are the overall economic climate and relevant
regulations impacting the sales environment?
Economic and
Regulatory factors

11. Organizational Dynamic
Leadership
•What is the leadership style of the sales manager? Are they supportive, coaching, and
inspirational?
Teamwork and Collaboration
•How well do team members work together towards common goals? Is there open
communication and information sharing?
Motivation and Performance
•What motivates the sales team? Are there effective performance management and
incentive programs in place?
Learning and Development
•Are there opportunities for ongoing learning and skills development for the sales team?

12. Others
•Different sales management approaches may work
better for startups versus established companies.
Size and Age of the organization
•The specific industry and product or service offered will
also influence the sales management environment.
Industry and Product

13. Sales Forecasting
•Sales forecasting is the process of
estimating future sales performance
based on various factors and data. It
involves predicting the volume of sales,
revenue, and other key performance
indicators over a specific period, typically
in the short to medium term. Effective
sales forecasting is crucial for businesses
as it helps in planning, resource
allocation, setting realistic targets, and
making informed strategic decisions.
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14. Key Components
•Historical Data Analysis: Examining sales figures from previous months or years, looking
for trends, and understanding the factors that contributed to changes in sales.
•Market Analysis: Conducting market research, staying updated on industry reports, and
monitoring external factors such as economic conditions and regulatory changes.
•Sales Team Input: Gathering insights from sales representatives, conducting regular
meetings to discuss market feedback, and incorporating the sales team's expertise into the
forecasting process.
•Product Launches and Promotions: Evaluating the potential market response to new
products or promotions and estimating the contribution of these initiatives to overall sales.

15. Cont……….
•Customer Feedback: Collecting feedback through surveys, customer interviews, and
analyzing customer reviews to understand their preferences, satisfaction levels, and
potential changes in buying behavior.
•Economic Factors: Monitoring economic trends, inflation rates, interest rates, and other
macroeconomic factors that could influence purchasing power and consumer confidence.
•Seasonal Variation: Identifying peak seasons and low seasons, adjusting forecasts
accordingly, and planning resources to meet demand fluctuations.
•Technological Advances: Evaluating how technological advancements may influence
customer preferences and the adoption of new products or services.

16. Methods
•Expert Opinion
•Market Research
•Delphi Method
Qualitative Methods
•Time Series Analysis
•Regression Analysis
•Opportunity Stage Forecasting
•Machine Learning Models
•Moving Averages
•Causal Models
Quantitative Methods

17. Qualitative Methods

Expert Opinion
•Gathering opinions and insights from experts
within the industry, market analysts, or
experienced sales professionals.
Market
Research
•Conducting surveys, interviews, or focus
groups to gather information directly from
potential customers.
Delphi Method
•Iterative process involving a panel of experts
who provide individual forecasts anonymously,
with a facilitator aggregating and refining the
forecasts through multiple rounds.

18. Quantitative Methods

Time Series
Analysis
Analyzing historical sales data to identify patterns, trends, and seasonality using
methods such as moving averages or exponential smoothing.
Regression
Analysis
Examining the relationship between sales and other variables (such as
advertising expenses, economic indicators) to predict future sales.
Opportunity Stage
Forecasting
Focusing on the various stages of the sales pipeline or sales funnel to predict the
probability of closing deals at each stage.
Machine Learning
Models
Utilizing advanced statistical and machine learning algorithms to analyze large
datasets, identify patterns, and make predictions.
Moving Averages Calculating averages of past sales data over specific time periods to smooth out
fluctuations and identify trends.
Causal Models Considering the cause-and-effect relationships between sales and various
influencing factors, such as advertising, promotions, or economic conditions.

19. Sales
Management
Planning
•Sales management planning is the blueprint
for achieving your sales goals and
objectives. It's the process of setting a
roadmap for your sales team, outlining the
strategies, resources, and actions needed
to reach your desired outcomes.
•Sales management planning involves the
process of setting objectives, outlining
strategies, and developing action plans to
guide the sales team toward achieving
organizational sales goals.
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20. Sales Management Planning Process
Set Goals and
Objectives
Analyse Sales
Environment
Develop Sales
Strategies
Create a Sales
Action Plan
Allocate
Resources
Implement and
Monitor
Performance
Management

21. SMPP Cont……
SET GOALS AND OBJECTIVES
•Define clear, measurable, achievable,
relevant, and time-bound (SMART) goals
for your sales team. These goals should
align with the overall business objectives.
•Consider factors like market trends,
competitor activity, and resource
availability when setting goals.

ANALYSE SALES ENVIRONMENT
•Assess your current sales performance,
strengths, weaknesses, opportunities, and
threats (SWOT analysis).
•Identify key market trends and customer
preferences that will impact your sales
efforts.
•Evaluate your existing sales process,
technology, and resources.

22. SMPP Cont……
DEVELOP SALES STRATEGIES
•Choose the sales strategies that best suit
your target market, product or service,
and company goals.
•Consider inbound or outbound strategies,
account-based marketing, or niche market
focus.
•Define your pricing strategy, promotional
activities, and customer service
standards.

CREATE A SALES ACTION PLAN
•Break down your overall sales strategy
into actionable steps for each sales
representative and team.
•Define sales quotas, territories, and lead
generation targets.
•Develop a comprehensive sales process
with clear stages and milestones.

23. SMPP Cont……
ALLOCATE RESOURCES
•Ensure your sales team has the
necessary resources, including personnel,
training, technology, and budget, to
achieve their goals.
•Invest in the right sales tools and software
to track progress, manage leads, and
analyze data.

IMPLEMENT AND MONITOR
•Clearly communicate your sales plan to
your team and ensure everyone
understands their roles and
responsibilities.
•Regularly monitor progress against your
goals and adjust your plan as needed.
•Use data and analytics to identify areas
for improvement and optimize your sales
process.

24. SMPP Cont……
PERFORMANCE MANAGEMENT
•Implement a robust performance management
system to track individual and team performance.
•Provide regular feedback, coaching, and support to
help your sales team improve their skills and
achieve their goals.
•Recognize and reward successful performance to
keep your team motivated.

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25. Organisation of Sales Department
•The organization of a sales department can vary depending on the size of the company, industry,
and specific business objectives.
•Key considerations for organizing sales department:
•Sales goals and objectives: What are you trying to achieve with your sales team? Are you focused
on volume, lead generation, new customer acquisition, or customer retention? Aligning your
organizational structure with your goals ensures everyone is working towards the same target.
•Target market and product: Who are you selling to, and what are you selling? Understanding your
customer base and their buying behaviors will help determine the most effective sales approach
and team structure.
•Company size and resources: A small startup will have different needs compared to a large
enterprise. Consider your available resources, including personnel, budget, and technology, when
structuring your sales team.

26. Sales Management Positions & Roles
SALES LEADERSHIP
Sales Director/VP of Sales/Chief Sales
Officer:
•Oversees the entire sales function.
•Develops sales strategies in alignment
with overall business objectives.
•Sets sales targets and performance
metrics.
•Reports to the executive leadership team.
SALES MANAGEMENT
Sales Managers/Regional Sales
Managers:
•Manage and lead specific sales teams or
regions.
•Responsible for achieving sales targets in
their assigned areas.
•Provide coaching, training, and support to
the sales representatives.
•Report to the Sales Director/VP of Sales.

27. Sales Teams
Inside Sales Team:
•Engages with customers over the phone, email,
or online channels.
•Focuses on lead generation, qualification, and
nurturing.
•May handle smaller transactions or initial stages
of the sales process.
Outside/Field Sales Team:
•Conducts face-to-face meetings with clients and
prospects.
•Responsible for building relationships and closing
deals.
•Often assigned specific territories or accounts.
Key Account Managers:
•Focuses on managing and nurturing relationships
with key clients.
•Works closely with the most strategic accounts to
maximize revenue and satisfaction.
•Often deals with high-value and complex sales.
Sales Development Representatives (SDRs):
•Focuses on prospecting and qualifying leads.
•Generates interest and sets appointments for the
sales team.
•Acts as a bridge between marketing and sales.

28. Specialized Roles
Sales Engineers/Technical Sales Representatives:
•Provides technical expertise to support the sales team.
•Assists in explaining complex products or services to
customers.
Customer Success Managers:
•Works post-sale to ensure customer satisfaction and
retention.
•Focuses on building long-term relationships and identifying
upselling opportunities.
Sales Operations:
•Manages sales processes, tools, and technologies.
•Analyzes data to provide insights and support
decision-making.
•Ensures the smooth functioning of the sales department.
Sales Enablement:
•Provides resources, training, and tools to empower the sales
team.
•Ensures that sales representatives have the necessary
knowledge and materials to succeed.
Lead Qualification/Lead Qualification Representatives:
•Focuses on evaluating leads generated by marketing.
•Qualifies leads based on specific criteria before passing
them to the sales team.
Inbound Sales Team:
•Deals with inquiries and leads that come directly from
marketing efforts.
•Focuses on converting leads into customers through
inbound channels.

29. Support Roles
Administrative Support:
•Provides administrative assistance to the
sales team.
•Manages schedules, handles paperwork,
and supports day-to-day operations.
Data Analysts/Reporting Analysts:
•Analyzes sales data and prepares reports
for the sales team and leadership.
•Provides insights to improve sales
performance.

30. Sales Department Relations
Marketing
Symbiotic partnership: Marketing generates leads and awareness, while sales convert them into
customers.
Joint planning and goal setting: Aligning marketing and sales goals ensures both teams work
towards the same objectives.
Customer
Services
Seamless customer experience: Sales hands off satisfied customers to customer service for
ongoing support.
Valuable feedback loop: Customer service provides valuable insights into customer needs and
pain points..
Production
Understanding customer needs: This feedback is crucial for product development teams to
innovate and create products that resonate with the market.
Product launch and training: Sales actively participate in product launches and receive thorough
training on new offerings..
Finance
Budgeting and resource allocation: Understanding sales goals and pipeline helps finance
allocate resources effectively and support sales initiatives.
Pricing strategy and profitability: Sales insights on customer willingness to pay and competitor
pricing inform pricing strategies.

31. Distribution Network
Relations
•Distribution network relations in sales management refer to the
relationships and interactions between a company and its
distribution partners, including wholesalers, retailers, and other
intermediaries involved in the movement of products from the
manufacturer to the end consumer.
•Managing these relationships effectively is critical for ensuring
that products reach the target market efficiently and that both
the manufacturer and the distributors benefit from the
arrangement.

32. Conti……..
Sales managers need to select channels that align with the target market, product characteristics,
and overall business strategy.
Channel
Selection
This involves effective communication, negotiation, and the creation of mutually beneficial
agreements.
Channel
Partnerships
Sales managers need to integrate the efforts of various channel partners to create a unified and
efficient distribution system.
Channel
Integration
Sales managers should invest in training programs to educate channel partners about product
features, market trends, and sales techniques
Training and
Support
Sales managers need to ensure that there is clear and open communication with distribution
partners
Communication
Sales managers may use incentives such as commissions, bonuses, or promotional support to
encourage distributors and retailers to prioritize the sale of the company's products.
Incentives and
Reward
Sales managers should be proactive in identifying and resolving conflicts between channel
partners.
Conflict
Resolution

33. The Selling Process
•Prospecting and Qualifying
•Identifying potential customers
•Qualifying leads
•Preparation and Pre-Approach
•Product and market knowledge
•Planning your approach
•Approach and Building Rapport
•Making a positive first impression
•Building rapport
•Presentation and Demonstration
•Demonstration and proof of value proposition
•Handling Objections and Addressing Concern
•Listen actively and empathize
•Address objections with facts and solutions
•Closing the Sale
•Follow-up and Relationship Building
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34. Attributes of Sales Personality
Strong Communication Skills
Articulate and persuasive
Active listening
Relationship Building
Building rapport
Empathy and understanding
Resilience and Persistence
Rejection handling
Goal-oriented and persistent
Product Knowledge and Expertise
In-depth understanding of the product or service
Market awareness
Adaptability and Problem-Solving
Adaptability and Problem-Solving
Creative problem-solving
Bonus Attributes
Positive attitude and enthusiasm
Strong work ethics
Integrity and honesty

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BY-NC