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Chapter 1
Introduction to Sales
Management
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Sales management is the attainment of sales force goals in an effective
manner through planning ,staffing, training, leading and controlling
organization resources.

Efforts put forth to attain a companys sales objectives.

Sales management can involve any of the following activities:
(1) formulation of sales strategy through development of account
management policies, sales force compensation policies, sales revenue
forecasts, and sales plan,
(2) implementation of sales strategy through selecting, training,
motivating, and supporting the sales force, setting sales revenue targets,
and
(3) sales force management through development and implementation
of sales performance, monitoring, and evaluation methods, and analysis
of associated behavioural patterns and costs.

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Evolution of personal selling
Persuasion
Negotiation
Consultative
selling
Business
management
Partnership
strategies
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Marketing concepts
The five different marketing concepts:
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal concept
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Societal marketing concept
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Nature and role of sales management
Specific duties and responsibilities of a sales manager:
The determination of sales force objective and goals
Sales force organization, size, territory, and quota finalization
Sales forecasting and budgeting
Sales force selection, recruitment, and training
Motivating and leading the sales force
Designing compensation plan and control systems
Designing career growth plans and building relationship strategies with key
customers
Integration of technology with sales function
Augment the sales force by augmenting the sales-closing process
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Personal selling strategies
Top ten qualities of an industrial seller:
1. Willingness to go to bat for the buyer within the supplier firm
2. Thoroughness and follow through
3. Knowledge of the sales persons product line
4. Market knowledge and keeping the buyer posted
5. Applying his product and services to buyers needs
6. Knowledge of the buyers product line
7. Preparation for sales calls
8. Regularity of Sales calls
9. Diplomacy in dealing with operating departments
10.Technical education
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Types of personal selling
Industrial selling (or B-2-B Selling)

Four categories are:
1. Selling to resellers
2. Selling to business users
3. Institutional selling
4. Selling to governments


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Types of personal selling
Retail selling
Selling to the ultimate consumers for personal or non-
business use or consumption

Services selling
Basically activities or benefits provided to consumers
Services are intangible in nature
Cannot be standardized


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Types of selling
Order taker sales people
Inside order takers retail sales assistants
Delivery salespeople deliver products to customers
Outside order takers respond to customer calls

Order creators
Missionary salespeople persuade customers to promote a
sellers brand

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Types of personal selling
Order getters
Set of people who persuade customers to make a direct purchase
Organizational salespeople
Consumer salespeople
Technical support salespeople
Merchandisers
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Types of personal selling
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Differences between Selling and Marketing
No. Selling Marketing
1 Emphasis on product Emphasis on consumer needs and wants
2 Company manufactures the product first and then
decides to sell it

Company first determines customers needs and wants
and then decides on how to deliver a product to satisfy
these wants
3 Management is sales-volume oriented Management is profit-oriented
4 Planning is short-term-oriented , in terms of
todays products and markets
Planning is long-term oriented, in terms of new
products, tomorrows markets, and future growth
5 Stresses needs of a seller Stresses need and wants of buyers
6 Views business as a goods producing process Views business as consumer satisfying process
7 Emphasis on staying with existing technology and
reducing costs
Emphasis on innovation in every sphere, on providing
better value to the customers by adopting a superior
technology
8 Different departments work as highly separate
watertight compartments

All departments of a business operate in an integrated
manner, the sole purpose being generation of
consumer satisfaction
9 Cost determines price Consumers determine price, price determines cost
10 Selling views customer as the last link in business Marketing views the customers as the very beginning
of a business
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Concepts Selling and Marketing
Starting
point
Focus Means
Ends
Factory Factory Selling and Profits through
promoting sales volume
Starting
point
Focus Means
Ends
Market Customer Coordinated Profits through
marketing customer satisfaction
Selling Concept
Marketing Concept
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Marketing exchange process
Market anticipation
Exchange offer of value
Marketing mix
Product
Price
Place
Promotion
Producer/
marketer
Consumer
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Sales management process
Formulation of a strategic sales programme
Implementation of the sales programme
Evaluation and control of sales force performance
THE SALES
MANAGEMENT PROCESS
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Emerging trends in sales management