09MS326-Sales And Channel Management

09MS327-Sales And Channel Management Faculty CoordinatorR. SWAPNA KUMARI

Introduction Sales persons are socially responsible link between buyers and sellers Sales persons are responsible for obtaining sales volume, providing profit contribution, continuing business growth Sales department were established only after the activation of manufacturing and financial department

Sales ManagementSales Management is management of all marketing activities including price ,product merchandising.Sales managers are responsible for organising the sales effort , both within and outside the company Sales force management is the personal selling for incentives

Objectives of sales managementSales volumeContribution to profits Continuing growth

Sales Management and Financial Results Sales cost of sales = gross marginGross margin expenses = net profit

Sales Management, Personal Selling and Salesmanship Sales Management, Personal Selling and Salesmanship go hand in hand and is a step by step process Both personal selling and advertising go hand in hand . It mainly deals with the pricing ,advertising ,marketing channels , marketing research ,physical distribution

Buyers and sellers dyads

It is the mutual understanding between tha buyers and sellers

Theories of selling

AIDAS(attention, interest ,desire , action ,satisfaction)Right set of circumstancesBuying formula (need ,solution ,purchase)Behavioral equation (need ,solution ,purchase ,satisfaction )

Personal selling ObjectivesQualitative objectives (long term , decision on sales policies and personal selling strategies promotional strategies )Quantitative Objectives ( short term foreign money exchange )

Personal selling ObjectivesQualitative objectives:

To do the entire selling job (no other elements in the promotional mix)To service existing accounts ( to maintain contacts with present customers )To search out and obtain new customers To secure and maintain customers cooperation in stocking and promoting the products To keep customers informed on changes in the product line and other aspects of marketing strategy

6. To assist the customers in selling the product line (by missionary selling )7.To provide technical advice and assistance t customers 8. To assist with the training of middle man sales personal 9.To provide advice and assistance to middleman on management problems .10. To collect and report market information of interest and use to company management .

Quantitative Objectives To capture and retain a certain market shareTo obtain sales volume in ways to contributing to profitabilityTo maintain some number of few accounts of given typesTo keep personal selling expenses within set limitsTo secure targeted percentages of certain accounts business

Formulating Personal selling StrategyCompanys competitive posture The competitive setting Overall marketing strategy (long term and short term)Effectiveness of strategy implementation

Competitive setting and personal selling strategiesPure competitionMonopolistic competition Oligopolistic competition

Pure competition (i) no effects in the sellers and buyers is so large relative in the market that it can appreciably affect the products total demand and supply(ii) All sellers products are identical(iii) No artificial constraints (no government price fixing )(iv) All buyers are informed about all sellers prices

Monopolistic competition Monopolistic competition exists when there is large number of sellers of a generic kind of products Example Johnson and Johnson baby soap Push factor is necessary in the Monopolistic competition

Oligopolistic competition It emerges in the late phase of the market growth or an early phase of their market maturity (embryonic ,growth ,maturity and aging )It is the most aggressive competition If one product is launched in one company and the competitive company produces the same type of products

Personal selling objectives and personal selling strategies Qualitative objectives (long term , decision on sales policies and personal selling strategies promotional strategies )Quantitative Objectives ( short term foreign money exchange)

Sales related marketing policies and personal selling strategyWhat to sell (product policies )Whom to sell (Distribution policies )Two companies of personal selling strategy

Role and characteristic of effective sales executiveNature of sales management positions Position guide sales manager Position guide-District sales manager

Position guide sales managerReporting relation ship- Vice president Job objective To secure max volume of sales through effective development and execution of sales programs and sales policies for all products sold by the division Duties and responsibilities : (i) Sales program long term and short term program (ii) organization planning , organizing , controlling (iii) sales force management (iv) Internal and external relations

(v) Communications (vi) control

Performance criteria Satisfied or dissatisfied Exceed the quantity budget Sale dept is in line with plan Sales and writing are acceptable Turnover rate of sales personal is maintained

Position guide District sales managerReporting relation ship- sales manager Job objective max sales in district Duties and responsibilities: (i) Supervision of sales personal (ii) control (iii) Administration (iv) Communication

Performance criteria Exceed the quantity budget Total expenses not exceeding the budget amount Turn over rate of district is maintained

Relations with top management Responsible for all activities related to their activities Keep top management informed about the plans and decisions Good communication to top level managementMaintaining good record

Relations with managers of other marketing activities

Relation with product managementRelation with promotion management Relations with pricing managementRelation with distribution management

Sales Department Relations

Interdepartmental relations and coordinationFormal coordinating methods (i) First method -Build coordination among the departments making heads and reporting to the heads (ii) Second method -Reporting to the presidents and vice presidents of a company (iii) Third method -Policy , planning and coordinating committees

(ii) Informal coordination: (i) Informal interaction with all the departments (ii) Frequent communication with others

Coordination of personal selling with other marketing activities Sales and marketing information Sales and advertisingSales and service Sales and physical distribution

Coordination of personal selling with other Departments

Sales and productionSales and research & development Sales and personalSales and financeSales and accountingSales and purchasingSales and public relationsSales and legal

Sales departments external relationsFinal buyers relationsIndustry relations Government relations Educational RelationsPress relations

Distributive Network Relations Setting up cooperative programRole of manufacturers sales force

Objectives of Distributive Network cooperation Building distributive network loyalty to the managers Appraisal of the manufacturers policies and their implementationAnalysis of communication systems

Stimulating distributive outlets to greater selling effortsChanging policiesSharing promotional risks with dealersUsing forcing methodsIncentives to the distributive outletsIncentives to distribute outlets sales personnelIncentives to ultimate consumers

Developing managerial efficiency in distributive organization

Dealer training programAssistance in sales force managementAdvice and assistance on general management problemsShelf allocation programsMissionary sales personnel

Identifying source of supply at final buyers levelLocal advertisingPoint of purchase identification