8/14/2019 Sessions 1- 3

1/45

NATURE & SCOPE OF

SALES MANAGEMENTSessions 1 - 2

8/14/2019 Sessions 1- 3

2/45

BOOKS AND REFERENCES:

Sales and Distribution Management Tapan Panda, & SunilSahdev (Oxford), TPSS Text book

Sales & Distribution Management Dr Matin Khan,Excel Books (Rs.200/-)Marketing Channels Coughlan, Anderson, Stern, El-Ansary7 th . Edition, PearsonMarketing Channels ( A Management View) - BertRosenbloom, The Drydon Press ABC's of Selling - Charles FutrellSales Management: Decisions Strategies and Cases - Still,Richard RGupta, S.L. Sales and Distribution ManagementRampal, M.K., Gupta, S.L. Cases and Simulations in MarketingManagement

8/14/2019 Sessions 1- 3

3/45

Nature and scope of SalesManagement The importance of salesmanagement Responsibilities of a sales manager

Selling and Marketing thedifferenceOrganization for Sales &Marketing

Nature of sales organizationUnderstanding different types of sales& marketing organization structures

8/14/2019 Sessions 1- 3

4/45

FOR SUCCESS IN ALLAREAS OF LIFE

ATTITUDE IS MUCHMORE IMPORTANT

THAN APTITUDE

8/14/2019 Sessions 1- 3

5/45

GIVE ME SOME ATTITUDE1. There are a lot of different elements to asuccessful sale, but amongst the most

important is attitude2. The way you present yourself, your posture,

your clothing, your tone, even the way youlook at a customer- gives off subtle signals3. If you act like a loser slumped over, not

looking at prospect straight in the eyes- youcome across negativity and people react toyou negatively

4. Conversely, if you come out with a can doattitude and confidence, prospect will reactpositively towards you

8/14/2019 Sessions 1- 3

6/45

CREATING ATTITUDE- I1. You cant tell yourself you want to be confidentand boom you are. It doesnt work that way2. The right attitude is not just mental, its physical

too3. If you are not well dressed it will reflect upon you

in the same manner as the lack of confidence.Given a choice, people want to deal with someonewho projects a positive vibe

4. This is your livelihood. Invest in it. Get yourself acouple of really good suits, expensive shirts, andsilk ties. Your customers will notice- and so will you. You will feel better about yourself when you lookin the mirror

8/14/2019 Sessions 1- 3

7/45

CREATING ATTITUDE- II1. Get back to your fighting weight. You can look in themirror and tell yourself the problem is in your jeans.

But if you cant fit into your jeans, it doesnt make adifference why. If you are overweight you come acrossas a person who lacks self control and cant be trusted

2. Reading will improve your communication skills. It willmake you a better writer and a better speaker. Thesebenefits come no matter what you read- evenmysteries or science fictions

3. However, reading news papers and news magazineshas an added benefit; they make you a betterconversationalist. You will be better informed aboutwhats going along in the world.

8/14/2019 Sessions 1- 3

8/45

SOME FAMOUS QUOTES OFEARL NIGHTINGALE

1.People with goals succeed becausethey know where they aregoing Its as simple as that

2.You become what you think about 3.Whats going on inside shows on

the outside

8/14/2019 Sessions 1- 3

9/45

START WITH A QUERY

The task of a salesmanager is to increase

sales, the task thatconfronts a marketing

manager is to increase

Is marketing & sellingsynonymous?

8/14/2019 Sessions 1- 3

10/45

Marketing begins with consumer need identification.Sales on the other hand begins with the product in hand.The heart of any marketing activity is the exchangeprocess, completed and facilitated by the sales function

Marketing is defined as the conception, production,promotion and distribution of goods & services to the enduser at a profit.Thus mark eting aims at satisfying the need of theconsumer at one end and generate profits at the other endfor the manufacturer and other intermediaries associatedin the process.Marketing and sales are inseparable functions. Both arecomplimentary to each other. Marketing as well as salescannot exist in vacuum.The sales function also acts as a market feedback formarketing personnel. The actual test of a product in termsof quality, attributes, expectations, price worthiness andso on result only when it is sold to the consumer.Therefore consumer feedback is considered a very vitalingredient in formulating marketing policies.A product increases in sales only when it is marketed well.Thus it is very apt to conclude that the task of a salesmanager is to increase sales and that of a of marketingmanager is to increase profits. For this it is important that

8/14/2019 Sessions 1- 3

11/45

WHEN WE ARE MARKETING,WE ARE:

1. Deciding what products we are going to sell2. Determining the prices at which we are

going to sell3. Deciding whom we are going to sell4. Estimating the likely result of the profit

8/14/2019 Sessions 1- 3

12/45

DIFFEREN E BETWEENSELLING & MARKETINGORIENTED COMPANIES

SELLING MARKETINGEmphasis on product Emphasis on consumer needs and

wants

Company manufactures theproduct first and then decides to

sell it

Company first determines customerneeds and wants and then decides

how to deliver a product to satisfythese wants

Management is sales volumeoriented

Management is profit oriented

Planning is short-term oriented

in terms of todays products andmarkets

Planning is long-term oriented in

terms of new products, tomorrowsproducts and future products

Stresses needs of a seller Stresses needs and wants of a buyer

Views business as a goodsproducing process

Views business as a consumersatisfying process

Emphasis on staying withexisting technology and

Emphasis on innovation in everysphere, on providing better value to TPS S

8/14/2019 Sessions 1- 3

13/45

DIFFERENCE BETWEENSELLING & MARKETING

SELLING MARKETING

Different departments work ashighly separate watertightcompartments

All departments of a business operatein an integrated manner, the solepurpose being generation of consumer satisfaction

Cost determines price Consumers determine price, pricedetermines cost

Selling views customers as thelast link in business

Marketing views the customers as thevery beginning of a business

TPSS

8/14/2019 Sessions 1- 3

14/45

Session- 2

8/14/2019 Sessions 1- 3

15/45

THE SELLING CONCEPT

Startingpoint Focus Means Ends

Factory Factory Selling

& promoting

Selling

& promoting

Profits

throughsales

volume

Market Customerneeds

Coordinatedmarketing

Profitsthrough

customersatisfaction

THE MARKETINGCONCEPT

TPSS

8/14/2019 Sessions 1- 3

16/45

NEW TRENDS AFFECTINGPERSONAL SELLING

1. Buyers are more aware and demanding2. Customer expectations are rising3. Revolutionary advances in telecommunications and

computer technology are happening all the time4. Sales force for consumer product is shrinking5. Women are flooding the sales profession6. Domestic markets are undergoing micro-

segmentation7. Foreign competition is intensifying8. Markets are being international

A wise sales person will keep these trends in mind while going about his work

8/14/2019 Sessions 1- 3

17/45

SALES JUST DONTHAPPEN

1. 80% of all sales are made afterthe fifth call

2. 48% of all sales persons callonce, and quit

3. 35% call twice, and quit

4. 10% keep on callingThese 10% make 80% of the

sales

8/14/2019 Sessions 1- 3

18/45

SUCCESS CAN CAUSEFAILUREPhilip Kotler- Many times as corporations grow larger,

they begin to forget the very lessons which have madethem a success1.Increase in the no. of levels in the hierarchy makes itdifficult to make ultimate consumers voice heard2.When it does get heard, communication gets distorted3.Only information that is liked by top management is fed4.Salesman becomes overconfident because product ispopular and sells. They make fewer calls, travel less. Theythink about their own convenience and not that of thecustomer5.Salesmen begin to take customer for granted. Develops atake it or leave it attitude6.Sales man and company twists customers arms tying upslow moving product with fast moving ones7.Sales man becomes insensitive and unobservant aboutcompetition. End us as tortoise and hare 8.Salesman rely on improvising rather than on system

planning- again a sign of over-confidence

8/14/2019 Sessions 1- 3

19/45

WHO IS APROFESSIONAL?

1. Must have the will to learn and keep onlearning throughout his professional career2. Must serve a period of internship , to learn

the ropes and the details from someonesenior and more experienced

3. Must specialize because even in sellingthere is need to have expertise in specificproduct or services

4. Must take time to fraternize , to meetothers in the same profession

5. Must have the desire to contribute- to thecommunity, to the society . Selling is justnot a selfish job.

DISTINGUISHING FEATURES OF

8/14/2019 Sessions 1- 3

20/45

DISTINGUISHING FEATURES OFMARKETING- BASED

COMPANIES1. Use market share, rather than volume as measure of marketing success2. Analyse and use market segmentation principals3. Research the process of monitoring customer needs,

usage, trends as well as competitive activity4. Evolve a structure or process of coordinating all non-

marketing functions5. Have a set of specific marketing goals and targets6. Follow a corporate style and culture where marketing

plays a key role7. Follow a market-based business concept that provide

unique value to the customer8. Sales managers are termed as relationship mangers

8/14/2019 Sessions 1- 3

21/45

8/14/2019 Sessions 1- 3

22/45

THE SELLING FUNCTION

Insideorder-takers

Order-

takers

Order-

creators

Order-

getters

DG 5

THE SELLING

FUNCTION

Delivery

salespeople

Missionary

salespeople

Outside

order-takers

Newbusin

esssales

Organisa-tional

salespeople

Consumer

salespeople Tech

supportsales

people

Merchan-

isers

Front-linesales

people

Salessupportpeople

Respond toalready committed customers

Do not directly receive orders- talk to specifiers rather than buyers

Attempt to persuadecustomers to

place an order

8/14/2019 Sessions 1- 3

23/45

Inventory, channels of

distribution, no. of intermediaries-

Price levels,credit terms,

discounts, price

changes

Features, packaging,

quality,range

Advertising, publicity, sales

promotion, personal selling

8/14/2019 Sessions 1- 3

24/45

TIME OF ADOPTION OFINNOVATORS

8-24

8-3

DG-18

Innovator

s(2.5%) Early adopters(13.5%)

Early

majority (34%) Late

majority (34%)

%a

gefirst-time

adopters

Laggards

(16%)

Closely related to PLC concept

Time taken for diffusion process

8/14/2019 Sessions 1- 3

25/45

PRODUCT LIFE CYCLE

8-25

8-3

DG-18

Introduct ion

%a

gefirst-time

adopters Growth

Maturity Decline

Profit

Sales

8/14/2019 Sessions 1- 3

26/45

THE DEMAND CURVE

D

1Quantity

000

Price (Rs)

DG

D

432

If demand determinesthe upper threshold for

price, then costs

determine the lower one

8/14/2019 Sessions 1- 3

27/45

A SIMPLE BREAK-EVENCHART

Profits

Loss

Sales Revenue

Fixed Costs

(a)

Variable Costs(b)

Total Costs(a+b )

Break-even

Output

Sales

RevenueCost

DG

Sales managers must understand different

costing concepts

8/14/2019 Sessions 1- 3

28/45

Area wheresubstantial

improvements and cost savin s can be

8/14/2019 Sessions 1- 3

29/45

-SALESMAN Thinker in addition to being a doer

Begins with a plan- finds out whom to see, where and when and

estimates what he hopes to achieveFor industrial products in a highly competitive environment: 30% time is spent on planning 70% in implementingIf he does not do this: 100% of field work will yield only 30% productivity

Offer something new always Newness in a selling situation lies in the eyes of the salesperson

(feature/ benefit) No two prospects are ever the same

Strike empathy Define the customer profile- background, level of education,temperament, interests etc, weaknesses, needs & wants

Helps gain trust so that the customer will buy his products Target for the heart

When all brands are about the same, differentiate the product fromthose of competitors in ways external to the product

8/14/2019 Sessions 1- 3

30/45

Select territories and customersWhich areas to cover and within the area who are the potentialcustomers, how often and in what manner (market mapping)Planning the work working the planClassify customers:The A-customers will perhaps be the busiest and most difficult to

meet and they have to be met the most and for the longestperiod

Identify the influencers, deciders, purchasers and users:MAN (Money Authority & Need)

Who can initiate the decisionWho can influence itWho can decide

Who will be the formal purchaser Who will be the user Most times industrial selling and in large corporations these rolesare performed by different persons

8/14/2019 Sessions 1- 3

31/45

THE NATURE AND ROLE OFSALES MANAGEMENT

The basic function and role of selling is to generate salesand earn revenue for an organization. Todays approachincludes:Maintaining good customer relationsManaging profitability of a firmManaging customer complaintsBuilding brand value in the eyes of the customerBest marketing programs can fail if sales staff is

ineffective or improperly managed.For customers sales staff represents the face of thecompany and impressions determine future businessrelations.Functions of a sales manager are classified into:

1.Personnel selling Individual or team to establish andbuild a profitable relationship over time through multipletransactions

2.Sales management Planning, organizing, directing andcontrolling all sales activities

8/14/2019 Sessions 1- 3

32/45

ORGANIZATION FORMARKETING

Referred to as:DirectionalManagerialFunctional structureLines of authority & responsibility

Factors for consideration are:1.Will the need for a decision be recognized and givenadequate consideration by the appropriate members of theorganization?2.Will there be sufficient time for the decision makingprocess?3.Whether the necessary data on existing and alternativecourses of actions are available and utilized?

4.Will the skills, knowledge and potential of the organizationalmembers be used to maximize their contribution to the

8/14/2019 Sessions 1- 3

33/45

ORGANISATIONAL IMPLICATIONSOF ADOPTING THE MARKETING

CONCEPT

DG

Production

Managing Director

Sales Marketing Finance H.RManagem

ent

Field Sales Force

Sales Office Administratio

n

Advertising

Market Research

Publicity

SALES ORIENTED COMPANY

8/14/2019 Sessions 1- 3

34/45

ORGANISATIONAL IMPLICATIONSOF ADOPTING THE MARKETING

CONCEPT

DG

Production

Managing Director

Sales

Marketing Finance H.RManagem

ent

Field Sales Force

Sales Office Administratio

n

Advertising

Market Research

Publicity MARKET-ORIENTED COMPANY

Sales promotion

Publicity

8/14/2019 Sessions 1- 3

35/45

EXAMPLE OF A SALESORGANIZATION STRUCTURE

NATIONAL SALESMANAGER

REGIONAL SALESMANAGERS

DISTRICT SALESMANAGER

DUTIES AND

8/14/2019 Sessions 1- 3

36/45

DUTIES ANDRESPONSIBILITIES OF A

SALES MANAGER Determining sales force objectives and goals Finalizing sales force organization, size, territory, and quota

Forecasting and budgeting sales

Selecting, recruiting, and training of the sales force

Motivating and leading the sales force Designing compensation plan and control systems

Designing career growth plans and building relationshipstrategies with key customers

SALES MANAGEMENT

8/14/2019 Sessions 1- 3

37/45

SALES MANAGEMENTMODEL

DESCRIBING THE PERSONNEL SELLINGFUNCTION

DEFINING THE STRATEGIC ROLE INPERSONAL SELLING

DESIGNING THE SALES ORGANISATION

DEVELOPING THE SALES FORCE

DIRECTING THE SALES FORCE

DETERMINING SALES FORCE EFFECTIVENESS &PERFORMANCE

PRACTICAL MARKETING

8/14/2019 Sessions 1- 3

38/45

PRACTICAL MARKETINGORGANISATION STRUCTURE

MANAGING DIRECTOR

Production

Director

Financial

Director

Marketing

Director

HumanResource

DirectorMarketing Manager General Sales

Manager

Market ResearchProduct

PlanningSalesforecastingProductionSchedulingSales BudgetingPricingAdvertising

Field SalesForce

CustomerServiceProductService

8/14/2019 Sessions 1- 3

39/45

ORGANISATION STRUCTURESCUSTOMER ORIENTED MANAGING DIRECTOR

EngineeringProduction R &DDesignMarketResearchFinancePurchasingCredit ControlAdvertisingSalespromotionPhysicalDistribution

SalesCustomer

Marketing

8/14/2019 Sessions 1- 3

40/45

Sales Director

Regional Sales Manager

Area Sales Manager Area Sales ManagerArea Sales Manager

SalesPeople

SalesPeople

SalesPeople

Product SalesManagers

SalesDirector

Fans Radiators Water Pumps

Sales People Sales People Sales People

Geographical Structure

duct Specialization Structure

DG

t B d St t

8/14/2019 Sessions 1- 3

41/45

Industry Sales

Managers

SalesDirector

Banking Manufacturing Retailing

Sales People Sales People Sales People

ustomer Based Structure

Geographical Structure:Sales person is required to sell full range of company productsCosts low but such people are relatively weak in interpreting buyerbehaviourProduct Specialization Structure:Problem of route duplication (higher travel costs) if products sellessentially to the same customerMay cause customer annoyanceCustomer-based Structure:Often used in industrial selling marketsSpecialization by markets served allows sales people to gain greaterinsights into the factors of a particular industryMore training for increased customer knowledge and increased travelexpenses DG

LINE VS STAFF

8/14/2019 Sessions 1- 3

42/45

National SalesManager

Regional SalesManagers

District Sales

Managers

Sales TrainingManager

Sales TrainingManager

Salespeople

Staff PositionLinePosition

LINE VS. STAFFPOSITIONS

AN ORGANIZATION STRUCTURE OF A 2

8/14/2019 Sessions 1- 3

43/45

AN ORGANIZATION STRUCTURE OF A 2-WHEELER COMPANY

DIRECTOR MARKETING

GMMarketin

g

GMSales

GMService

GMCommerci

alAdvertisin

g

GM(Spar

es)

Retailing

Network Developm

entSales

Mgmt.Statistics

CreditControlPricing

MarketResearch

Goods

MovementBranches

(12)

BranchManage

r

RuralMarketin

g

Area Mgr.

Comm.Asst.ServiceEngg.Depot

InchargeSpare Part

8/14/2019 Sessions 1- 3

44/45

DISTRIBUTION ITS ROLE &IMPORTANCE

Creating a dealer network Preparation of annual Dealer Network

Development (DNM) plan

Appointment of dealer network Categorization of the dealers Initial support to new dealers

Dealer productivity norms Termination of dealers

8/14/2019 Sessions 1- 3

45/45

END OF PRESENTATION