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Objectives of
Sales Management
Sales objectives are derived from the marketing objectives
And,
Marketing objectives are determined from the corporate
objectives.
1
Dr. Amitabh Mishra
• Objectives of sales management are derived from
the organizations marketing objectives.
• Ultimate sales objective of an organisation is to
have a decent growth in sales.
• More specifically, sales management objectives
can be grouped under:
– Quantitative Objectives (Short-term)
– Qualitative Objectives (Long-term)
Dr. Amitabh Mishra 2
Quantitative Objectives (Short-term)
• To retain and capture market share
• To determine sales volume in ways that
contributes to profitability
• To obtain new accounts of given types
• To keep personal expenses within specified
limits
• To secure targeted percentage of certain
accounts of business
Dr. Amitabh Mishra 3
Qualitative Objectives (Long-term)
• To do the entire selling job
• To service existing accounts, (customers).
• To search and maintain customer cooperation.
• To assist the dealer in selling the product line.
• To provide technical advice wherever necessary.
• To assist in training of middleman’s sales personnel.
• To provide advice and assist the middlemen.
• To collect and report market information of interest
and use to the company management
Dr. Amitabh Mishra 4
SALES OBJECTIVES, STRATEGIES
AND TACTICS
RELATIONSHIP BETWEEN
Dr. Amitabh Mishra 5
RELATIONSHIP BETWEEN
sales objectives, strategies and tactics
• There is a strong relationship between the objectives, strategies
and tactics.
– Strategies are defined as the ways of achieving the
objectives.
– Tactics are defined as those activities which should be
carried out to achieve the strategies.
• Tactics will help achieve strategies. And, these strategies will
help achieve your sales objectives and your marketing objectives
Dr. Amitabh Mishra 6
• Sales strategies and tactics are developed from
marketing strategies.
• Various marketing strategies may be:
– Entering export markets,
– Penetrating deeper into existing domestic markets.
– Optimizing sales force performance,
– Effectively using channel partners
Dr. Amitabh Mishra 7
Nature of Sales Management
Dr. Amitabh Mishra 8
Nature of Sales Management
• Consolidation with Marketing Management
• Relationship selling
– Transactional
– Value added
– Collaborative/partnering
• Specific duties and responsibilities of a sales
manager
Dr. Amitabh Mishra 9
• Consolidation with marketing
management
• Marketing department could be broken into different
wings. We may have the
– Manager: promotion,
– Manager: marketing research,
– Manager: Sales,
– Manager: marketing logistics,
– Manager: customer service
Dr. Amitabh Mishra 10
• Relationship selling
– Transactional relationship selling
– Value added relationship selling
– Collaborative/Partnering relationship selling
Dr. Amitabh Mishra 11
• Transactional relationship selling refers to customers
who are sold a particular good and service are not
contacted again.
– Till when the 1950’s, this was the general trend
• Value-added relationship selling is a selling style or a
situation where the salesperson contacts the customer
after the purchase, so as to determine if the customer
is satisfied with the product, and if he needs anything
else, or has any requirements in future.
Dr. Amitabh Mishra 12
• Collaborative/Partnership relationship selling, the seller
enters into a long term partnership or a contractual
agreement with the buyers. Ex- In B to B scenario.
• Seller works continuously work with buyer
– To improve his customers operations and processes
– To benefit the customer,
– To help the customer,
– To deliver better products and services,
– To gain larger market shares,
– To gain profits and succeed in the market
Dr. Amitabh Mishra 13
• Specific duties and responsibilities of a sales manager
– Determining goals and objectives of the sales force: Sales
targets or sales quotas
– Organizing the sales force: Territory management and
quota allocation
– Sales forecasting
– Sales budgeting
– Sales force management: recruitment, selection, training,
motivation, performance management, career appraisals,
development, etcetera
Dr. Amitabh Mishra 14

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Sales Management Objectives, Strategies and Relationship Selling

  • 1. Objectives of Sales Management Sales objectives are derived from the marketing objectives And, Marketing objectives are determined from the corporate objectives. 1 Dr. Amitabh Mishra
  • 2. • Objectives of sales management are derived from the organizations marketing objectives. • Ultimate sales objective of an organisation is to have a decent growth in sales. • More specifically, sales management objectives can be grouped under: – Quantitative Objectives (Short-term) – Qualitative Objectives (Long-term) Dr. Amitabh Mishra 2
  • 3. Quantitative Objectives (Short-term) • To retain and capture market share • To determine sales volume in ways that contributes to profitability • To obtain new accounts of given types • To keep personal expenses within specified limits • To secure targeted percentage of certain accounts of business Dr. Amitabh Mishra 3
  • 4. Qualitative Objectives (Long-term) • To do the entire selling job • To service existing accounts, (customers). • To search and maintain customer cooperation. • To assist the dealer in selling the product line. • To provide technical advice wherever necessary. • To assist in training of middleman’s sales personnel. • To provide advice and assist the middlemen. • To collect and report market information of interest and use to the company management Dr. Amitabh Mishra 4
  • 5. SALES OBJECTIVES, STRATEGIES AND TACTICS RELATIONSHIP BETWEEN Dr. Amitabh Mishra 5
  • 6. RELATIONSHIP BETWEEN sales objectives, strategies and tactics • There is a strong relationship between the objectives, strategies and tactics. – Strategies are defined as the ways of achieving the objectives. – Tactics are defined as those activities which should be carried out to achieve the strategies. • Tactics will help achieve strategies. And, these strategies will help achieve your sales objectives and your marketing objectives Dr. Amitabh Mishra 6
  • 7. • Sales strategies and tactics are developed from marketing strategies. • Various marketing strategies may be: – Entering export markets, – Penetrating deeper into existing domestic markets. – Optimizing sales force performance, – Effectively using channel partners Dr. Amitabh Mishra 7
  • 8. Nature of Sales Management Dr. Amitabh Mishra 8
  • 9. Nature of Sales Management • Consolidation with Marketing Management • Relationship selling – Transactional – Value added – Collaborative/partnering • Specific duties and responsibilities of a sales manager Dr. Amitabh Mishra 9
  • 10. • Consolidation with marketing management • Marketing department could be broken into different wings. We may have the – Manager: promotion, – Manager: marketing research, – Manager: Sales, – Manager: marketing logistics, – Manager: customer service Dr. Amitabh Mishra 10
  • 11. • Relationship selling – Transactional relationship selling – Value added relationship selling – Collaborative/Partnering relationship selling Dr. Amitabh Mishra 11
  • 12. • Transactional relationship selling refers to customers who are sold a particular good and service are not contacted again. – Till when the 1950’s, this was the general trend • Value-added relationship selling is a selling style or a situation where the salesperson contacts the customer after the purchase, so as to determine if the customer is satisfied with the product, and if he needs anything else, or has any requirements in future. Dr. Amitabh Mishra 12
  • 13. • Collaborative/Partnership relationship selling, the seller enters into a long term partnership or a contractual agreement with the buyers. Ex- In B to B scenario. • Seller works continuously work with buyer – To improve his customers operations and processes – To benefit the customer, – To help the customer, – To deliver better products and services, – To gain larger market shares, – To gain profits and succeed in the market Dr. Amitabh Mishra 13
  • 14. • Specific duties and responsibilities of a sales manager – Determining goals and objectives of the sales force: Sales targets or sales quotas – Organizing the sales force: Territory management and quota allocation – Sales forecasting – Sales budgeting – Sales force management: recruitment, selection, training, motivation, performance management, career appraisals, development, etcetera Dr. Amitabh Mishra 14