3. A sale is the pinnacle activity involved in selling products or
services in return for money or other compensation. It is an act
of completion of a commercial activity.
Sales is everything that you do to close the sale and get a
signed agreement or contract.
SALES - DEFINITION
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4. MARKETING â DEFINITION
Marketing is the process associated with promotion for sale goods or
services.
It is considered a âsocial and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging
products and values with others.â
It is an integrated process through which companies create value for customers
and build strong customer relationships in order to capture value from customers
in return.
Marketing is used to create the customer, to keep the customer and to satisfy
the customer. With the customer as the focus of its activities, it can be concluded
that marketing management is one of the major components of business
management.
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The evolution of marketing was caused due to
mature markets and overcapacities in the last decades.
Companies then shifted the focus from production more
to the customer in order to stay profitable.
5. 5
DIFFERENCE B/W SALES & MARKETING
Sales Marketing
ďSales starts with seller & is
preoccupied all the time with the
needs of the seller.
ďśMarketing starts with the buyer and
focuses constantly on the needs of the
buyer.
ďEmphasizes on saleable surplus
available with the company.
ďśEmphasizes on identification of
market opportunity.
ďSeeks to convert products in to
cash.
ďśSeeks to convert customer needs in
to products.
ďViews business as â goods
producing process.
ďśViews business as â a customer
satisfying process.
ďSales views the customer as the last
link in the business.
ďśMarketing views the customer as
the very purpose of business.
7. EVALUATION OF SALES MANAGEMENT
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⢠The history of salesmanship is an old as human civilization âPaul
Herman.
⢠Sales people were not held in high esteem by the society.
⢠Scene before industrial revolution begins.
⢠Scene before Industrial revolution started.
⢠The techniques of modern sales management and selling
techniques were refined by John Henry Patterson â Father of
Modern Sales Management.
10. SALES MANAGEMENT
ďą DEFINITION:
Sales management originally referred exclusively to
the direction of sales force personnel and lately the
term transformed into broader aspect in addition to the
management of personnel selling. In general view
Sales Management refers the management of overall
marketing activities such as advertising, sales
promotion, marketing research, physical distribution,
pricing and product merchandising.
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11. SALES MANAGEMENT
ďą According to American Marketing Association :
Sales management refers âThe planning, direction and
control of personnel selling, including recruiting,
selecting, equipping, assigning, routing, supervising,
paying and motivating as these tasks apply to the
personal sales forceâ.
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12. INTERNATIONAL
SALES MANAGEMENT
ďą The multinationals and other companies with foreign
production and marketing operations look to sales management
to implement sales related marketing policies in each national
market.
ďą International sales managers have to guide and coordinate
the efforts of the sales organization in countries where the
company does business.
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15. OBJECTIVE OF SALES
MANAGEMENT
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Following are the three general objectives of sales
management:
1. Generate sufficient sales volume.
2. Contribute towards current profit.
3. Ensure continuous growth of the organisation.
Top management has ultimate responsibility for the
above objectives.
However, this task by authority delegation, is
entrusted to sales department who are the ultimate
operational level managers.
16. OBJECTIVE OF SALES
MANAGEMENT
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Sales Volume & Sales Growth.
Share of each product in the total volume.
Market Share.
Profits.
Selling Expenses.
Key Accounts.
New Accounts.
Expansion of Channels.
Proportion of Cash & Credit Sales.
After sales services.
Training of dealers & Customer in some cases.
17. NATURE & SCOPE OF SALES
MANAGEMENT
The nature or characteristic of sales management
can be explained by:
Its integration with marketing management.
Relationship selling.
Varying sales responsibilities.
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19. FUNCTIONS OF SALES
MANAGEMENT
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Managerial Functions:
1. Planning:
This involves, forecasting demand, sales territory planning,
personal selling and promotional efforts.
2. Organising:
This involves structure, resource allocation, responsibility
assignment and delegation of authority etc.
3. Direction:
This involves leadership motivation, communication and
promotional steps including personal selling.
20. FUNCTIONS OF SALES
MANAGEMENT (CONTD..)
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Managerial Functions (ContdâŚ):
4. Control:
This involves delegation, quota fixing,
performance evaluation, incentives and
budgets.
5. Co-ordination:
This involves liaison, integration of various
elements, internally, P.R. and good will by
contact with customer / general public.
22. FUNCTIONS OF SALES
MANAGEMENT (CONTD..)
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Staff Functions:
This is related to staff functions of sales force such as the following:
Recruitment and selection.
Deployment and evaluation of performance.
Training and development.
Career development.
Compensation and incentives.
Motivation and empowerment.
23. FUNCTIONS OF SALES
MANAGEMENT (CONTD..)
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Advisory Functions:
This is related to advisory functions of sales management:
Product attributes / quality aspects.
Pricing policies.
Promotional steps and personal selling aspects.
Distribution policies and channel selection criteria.
Advertisement policies such as media selection and
target audience.
Transportation and warehousing aspects.
24. FUNCTIONS OF SALES
MANAGEMENT (CONTD..)
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Liaison Functions:
Liaison with departments such as the following:
Production department.
Finance department.
Marketing department.
R&D department.
Distribution network.
After Sales Services department.
25. SALES GOALS & STRUCTURE
⢠Managers Need Good Data:
⢠What Existing Clients Are Likely to Purchase
⢠Where in the Territories They are Located
⢠Sales Organizations Need Structure:
⢠How Many Levels of Management
⢠Span of Control
26. BUILDING A SALES PROGRAM
⢠Hiring:
⢠Sources of Recruiting.
⢠Careful Screening.
⢠Training:
⢠Companyâs Products/Services.
⢠Company Operating Procedures.
⢠Selling Skills.
⢠Assigning Territories:
⢠Optimize Effectiveness and Customer Service.
⢠Minimize Costs.
27. MANAGING THE SALES FORCE
⢠Leadership
⢠Guide by Example
⢠Develop Rapport
⢠Motivation
⢠Incentive Programs
⢠Recognition
28. ⢠Compensation
⢠Money is a Prime Motivator for Sales People
⢠Mix of Salary, Bonuses, Commissions, Expenses and Benefits
⢠Evaluation
⢠Sales Data
⢠Quantity Sold
⢠Mix of Products
⢠Costs
⢠Impact on Profits
MANAGING THE SALES FORCE
29. ⢠W. Edwards Deming, Joseph Juran, Kaoru
Ishikawa - Fathers of TQM
⢠The Philosophy
⢠Foster Continuous Improvement
⢠Do It Right The First Time
⢠Workers closest to the process usually
have the best suggestions for
improvement - involve them
TOTAL QUALITY MANAGEMENT
30. ⢠Job Skills
⢠Organizational Skills
⢠Leadership
⢠Time Allocations
⢠Selling
⢠Administration
⢠Account Service/Coordination
⢠Travel/Waiting
⢠Internal Meeting
THE FIELD SALES MANAGER
31. ⢠Administration
⢠Management of Sales Office
⢠Training
⢠Budgeting, Expense Control
⢠Compensation Plans
THE FIELD SALES MANAGER