Module -1

Introduction

Sales management
The only business function
that generates revenue.

SELLING

THE WORD SELL IS DERIVED FROM A Norwegian WORD SELJE

WHICH MEANS TO SERVE.
TO SERVE YOUR CUSTOMERS YOU MUST UNDERSTAND THEIR
NEEDS.
SELLING IS OF TWO TYPES
DIRECT
INDIRECT

Personal Selling Defined

A form of person to person
communication in which a
salesperson works with
prospective buyer and
attempts to influence
purchase in the direction of
his or her companys
products or services
Dr. Rosenbloom

The personal selling/sales

process
1.
2.
3.
4.
5.
6.

Prospecting
Pre approach
Approach
Presentation
Close
Follow up
5

Sales : relation with

marketing activities

Sales &Advertising: both stimulate

demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to support
sales where and when they need it most.
Sales & Marketing Information: data is
needed for analysis of sales problems, for
determining sales potential.
Sales and Distribution
Sales and Market Research
Sales and Service: contributes to strategy
success.
6

Cadburys Case Study

- Who won the Battle of Worms?

In October 2003, just a month before Diwali, customers in

Mumbai complained about finding worms in Cadbury Dairy
Milk chocolates. Quick to respond, the Maharashtra Food
and Drug Administration seized the chocolate stocks
manufactured at Cadbury's Pune plant.
In defense, Cadbury issued a statement that the infestation
was not possible at the manufacturing stage and poor
storage at the retailers was the most likely cause of the
reported case of worms.
But the FDA didn't buy that. The FDA commisioner told
CNBC-TV18, "It was presumed that worms got into it at the
storage level, but then what about the packing - packaging
was not proper or airtight, either ways it's a manufacturing
defect with unhygienic conditions or improper packaging.

That was followed by allegations and counter-allegations

between Cadbury and FDA. The heat of negative publicity
melted Cadbury's sales by 30 per cent, at a time when it
sees a festive spike of 15 per cent.
For the first time, Cadbury's advertising went off air for a
month and a half after Diwali, following the controversy.
Consumers seemed to ignore their chocolate cravings.
As a brand under fire, in October itself, Cadbury's launched
project 'Vishwas' - an education initiative covering 190,000
retailers in key states. But what the company did in
January 2004 is what really helped de-worm the brand.
By investing up to Rs 15 crore (Rs 150 million) on imported
machinery, Cadbury's revamped the packaging of Dairy
Milk. The metallic poly-flow, was costlier by 10-15 per cent,
but Cadbury didn't hike the pack price.

Bharat Puri, managing director, Cadbury's India says, "While

we're talking about a few bars of the 30 million we sell every
month - we believe that to be a responsible company,
consumers need to have complete faith in products. So even
if it calls for substantial investment and change, one must not
let the consumer confidence erode."
Simultaneously, Cadbury's roped in brand ambassador
Amitabh Bachchan to do some heavy duty endorsement
putting his personal equity on the line for the brand.
The company upped ad spends for the Jan-March quarter by
over 15 per cent. The recovery began in May 2004, and by
June, Cadbury's claimed that consumer confidence was back.
These experts believe that the reason for Cadbury's success
was that it took crisis head-on. And the consumers were more
forgiving, because the brand enjoyed an emotional equity in
India.

What Cadbury's set out to deliver,

it goofed up once but it seemed to be very
sincere in its intent to get things right.
Cadbury's could be case study of a sweet
recovery from a crisis. It continues to lead
the Indian chocolate market with over 70
per cent market share. However, the
experts feel that today's constantly
changing environment should keep the
company on guard.

Sales & Integrated marketing communication

Integrated marketing communication- the synergized

coordination of every communication from a firm to a
target customer to convey a consistent and complete
message.
Sales will enhance if IMC is well coordinated, channelized
& streamlined. E.g Cadburys

Definition

Sales Management- is the

attainment of sales force goals in an
effective and efficient manner
through planning, staffing, training,
leading, and controlling
organizational resources.

Goals of a Sales Manager

Increase Sales
Increase Revenues
Control internal costs
Maximize Profits
Maximize Market Share

Sales Management - Flowchart

Overview
Sales
Environment
Supervising

Planning

Sales
Managers
Motivating

Personal
Sales Reps

Recruiting

Training

Managing

a sales force involves recruiting,training, supervising,

compensating salespeople, motivating them to become problem solvers,
and providing the proper planning and backup support so they can
perform their jobs properly.

Sales Environment

Geographic
Demographic
Psychographic
Ethical
Legal
International

Evolution of Sales
Management

Prior to industrial revolution not much emphasis was

given on sales.
Small scale production.
With the advent of industrial revolution, mass production
started
Large organizations started dominating the market.
Supply exceeded demand- led to salesmanship.
Middlemen like wholesalers & retailers came into picture.

..contd

With the complication in channels of distribution,

there was a realization of separate sales department.
Solved the problem of market expansion.
The selling process became more complex &
required special attention.
Became necessary to split sales into sales & other
support functions; led to the marketing concept.

..contd

The modern day sales manager works in an

integrated manner with other marketing
functions
Salesmanship challenges more in consumer
durable & industrial products.

Sales ManagementCareer
Path
Level One
Sales Trainee

Level Two
Sales Executive/ Sales
Engineer
Level Three Branch Head
Level Four
City Head
Level Five
Area Sales Manager
Level Six Regional Sales Manager
Level Seven Zone Sales Manager
Level Eight National Sales Manager
Level Nine
V.P. Marketing
Level Ten
President/ Country
Head

Qualities of a Sales Person

Create trust & credibility

Understand buyer behavior
Good communication skills
Creativity
Logical
Research oriented
Knowledge

Salesmanship- both an art and a science!

Emerging Trends in Sales

Management

Transactional to Relationship
Individuals to Teams
Local to Global
Sales Force Diversity
Ethical and Social Issues
Online Sales