Nature and Scope of Sales Management

MBA III Punjabi University

According to a jobs provider

company ‘Manpower’, sales positions are the hardest to fill.

Sales – one of the most expensive activities in any firm (constitutes more than 20% of revenue)

Starting salaries for sales people higher than most of other positions

Many CEOs like Mark Hurd (HP), start in sales

What is Sales Management?Sales management is defined as the

activities required to lead, direct, or supervise the personal selling efforts of an organization.

Sales management is also defines as the attainment of sales force goals in an effective and efficient manner through:o Planningo Staffingo Trainingo Leadingo Controlling firm’s resources

Nature of sales managementIs an artoConceptual skillsoPeople skillsoTechnical skillsoDecision skills

Is a scienceoIs a process with definite steps

Cont’d…Aids in achievement of

organizational objectivesoThrough relationships (both business

and consumer)oMonitoring performanceoRealize profits

Scope of sales managementEncompasses several activities of a

managerManage marketing activities (4 Ps)Marketing research and intelligenceApplicable at all places where

selling is done:◦Manufacturing and wholesale◦Retail◦Services (banking, insurance, software)

Cont’d….Employable in firms which have no direct

sales function like for manufacturing intermediaries

Has several roles such as recruitment and selection, training, compensation, appraisal, motivations, assignment, organizing, etc.

3 major objectives of sales management:◦Sales volume◦Contribution to profits◦Continuing growth

Cont’d…Implement control

◦Set standards and communicate◦Measure and evaluate actual

performance◦Take corrective action

Sales Trainee

Salesperson

Key Account Salesperson

District Sales Manager

Regional Sales Manager

Zone Sales Manager

National Sales Mgr.

Vice President of Marketing

President

FIGURE 1.1 A SALES PERSONNEL CAREER PATH

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

PLANNING

The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

STAFFING

Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

SALES TRAINING

The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

LEADING

The ability to influence other people toward the attainment of objectives.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

CONTROLLING

Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary.

FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.

SALES PERFORMANCE

T o p Sales L ead ers (Strategic)

F irst- L ine Sales L ead ers (O p eratio nal)

M id d le Sales L ead ers (T actical)

FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

Regional Sales Leader

CEO

President

Vice President of Marketing

National Sales Leader

Zone Sales Leader

District Sales Leader

Assistant District Sales Leader

Nonmanagerial Salespeople

Sales Trainee Salesperson Key Account

Basis of Difference MARKETING MANAGEMENT

SALES MANAGEMENT

1. SCOPE Marketing management is a very wide term. It includes Sales management.

The scope of sales management is less in comparison to marketing management. It is a part of marketing.

2. Evolution It is a new concept in comparison to Sales management.

It is an old concept.

3. Activities It includes all the activities performed for promoting customer satisfaction. It includes activities of consumer research so as to identify customers’ need, preferences, tastes, so that product planning and development can be done according to customer’s preferences. It includes Selling activities.

It mainly includes selling activities related to transfer of ownership of goods an services from seller to buyer.

Basis of Difference MARKETING MANAGEMENT

SALES MANAGEMENT

4. Producer V/s Consumer oriented

It is customer oriented. It stresses on consumer needs, satisfaction and welfare.

It is Producer- oriented. Its main aim is to increase sales and earn more profits for manufacturer or seller.

5. Approach to Profit It emphasizes on Profit-maximization through promoting customer satisfaction.

It emphasizes on profit maximization through sales maximization.

6.Control Marketing Manager works under the General manager of Organization

Sales Manager works under Marketing Manager