Evolution of sales Management

SALES AND DISTRIBUTION MANAGEMENT Sales management is application of basic management principles to Sales, Recruitment, Training, Supervision, Evaluation, and Control. Evolution of Sales Management As old as human civilization  Bronze age salespeople carried wooden boxes(26 inches long) containing axe, sword, buttons etc.  Sales people were not held in high esteem by society  Roman meaning of word Sales person is cheater  Mercury the god of cunning and barter, was regarded as deity of merchants and traders.  India was the destination for traders and resellers in the medieval age for spices, carpets, jewellery, etc.  British came to India for trading 

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First Salespeople in US were the yankee peddlers who carried clothing, spices, and household articles from one part of the country to another. In India they were called pheriwallahs. Pheriwallahs carried sarees, dress materials, and spices from one village to another. (rural markets) from manufacturing base to consumption centers] The pack peddlers in India traded with the tribal Indians and exchanged knives, beads, and ornaments, fur, spices, salt and handicrafts. Even in India sales people were treated as shrewd, unprincipled tricksters who were known for product and price manipulation. Baniyas (community of traders having storage facility for retailing) The Techniques of modern sales management were refined by John Henry Patterson, known as father of modern sales management. He conducted professional sales training programs Thomas J Watson was trained by Patterson, who later founded ©KRR SDM 2010 IBM

Role of Sales Management in Marketing

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Sales and Marketing are synonymous Primary goal of marketing is to position and differentiate products so as to pull customers to the firm. Sales attempts to push the products through the channels and make them available to consumers. Buying through Internet and TV, Telemarketing, Call centre usage has changed personal selling Multi Level Marketing (Practiced by Amway, Oriflame, ModiHover, HUL, Avon etc) Combination of various methods/techniques of selling is called Selling Mix. Sales function integrated with other functions through ERP in modern organizations. ©KRR

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SALES DEPARTMENT

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Organisation Structure Levels of Management and Hierarchy

RESPONSIBILITIES OF SALES MANAGER  Determining Sales force objectives and goals  Finalizing Sales force organisation, size, territory and quota  Forecasting and budgeting Sales  Selecting recruiting and training the sales force  Motivating and leading the sales force  Designing the compensation plan and control system  Designing career growth plans and building relationship strategies with key customers ©KRR

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SALES MANAGEMENT PROCESS Formulation of Strategic Sales Management Program Environmental Issues, Oraganising and planning company’s overallpersonal selling efforts and integrating this with Marketing strategy

Implementation of a Strategic Sales Management Program Selecting Sales personnel, Training, Motivating, Designing and implementing policies and procedures to achieve corporate objectives

Evaluation and control of Sales force Performance Methods and procedures for controlling individual and group sales performance. Taking corrective actions in formulation & implementation to achieve corporate objectives ©KRR

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Formulation of strategic sales management program THE ENVIRONMENT (External and Internal)

MARKETING STARTEGY (Product Lines, Pricing, Distribution, promotion policies, Advertising and Sales promotion)

SALES MANAGEMENT FUNCTIONS Account Management

Sales force organization ©KRR

Sales Planning, Forecasting and Quota Setting

Sales force deployment, territory Design& route planning SDM 2010

Key Decisions in Formulation of Sales Strategy 

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How the personal selling efforts be dovetailed to the company’s environment and integrated with other elements of marketing strategy. In what way the potential customers can be best approached, persuaded and serviced. Organization of sales force to manage various types of customers effectively and efficiently. Level of performance each member of the sales force is expected to attain during planning period under consideration. This involves forecasting, quota fixing, budget setting. Deployment of sales force as per forecasts and accounts. This involves deciding territories, allocation of territories to sales people. ©KRR

SDM 2010