Evolution of sales Management

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©KRR SDM 2010KRR SDM 2010

SALES AND DISTRIBUTION MANAGEMENT

Sales management is application of basic management Sales management is application of basic management principles to Sales, Recruitment, Training, Supervision, principles to Sales, Recruitment, Training, Supervision,

Evaluation, and Control. Evaluation, and Control.

Evolution of Sales Management

Evolution of Sales Management  As old as human civilizationAs old as human civilization

 Bronze age salespeople carried wooden boxes(26 inches long) Bronze age salespeople carried wooden boxes(26 inches long)

containing axe, sword, buttons etc.

 Sales people were not held in high esteem by society Sales people were not held in high esteem by society  Roman meaning of word Sales person is cheaterRoman meaning of word Sales person is cheater

 Mercury the god of cunning and barter, was regarded as deity 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 India was the destination for traders and resellers in the

medieval age for spices, carpets, jewellery, etc.

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 First Salespeople in US were the yankee peddlers who carried 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 In India they were called pheriwallahs.pheriwallahs.

 Pheriwallahs Pheriwallahs carried sarees, dress materials, and spices from one 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 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 Even in India sales people were treated as shrewd, unprincipled

tricksters who were known for product and price manipulation.

 Baniyas Baniyas (community of traders having storage facility for (community of traders having storage facility for

retailing)

 The Techniques of modern sales management were refined by The Techniques of modern sales management were refined by

John Henry Patterson, known as father of modern sales

management.

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Role of Sales Management in Marketing

 Sales and Marketing are synonymousSales and Marketing are synonymous

 Primary goal of marketing is to position and Primary goal of marketing is to position and

differentiate products so as to

differentiate products so as to pull pull customers to the customers to the

firm. firm.

 Sales attempts to Sales attempts to pushpush the products through the the products through the

channels and make them available to consumers. channels and make them available to consumers.

 Buying through Internet and TV, Telemarketing, Call Buying through Internet and TV, Telemarketing, Call

centre usage has changed personal selling centre usage has changed personal selling

 Multi Level Marketing (Practiced by Amway, Oriflame, Multi Level Marketing (Practiced by Amway, Oriflame,

ModiHover, HUL, Avon etc) ModiHover, HUL, Avon etc)

 Combination of various methods/techniques of selling is Combination of various methods/techniques of selling is

called

called Selling Mix._{Selling Mix.}

 Sales function integrated with other functions through Sales function integrated with other functions through

ERP in modern organizations. ERP in modern organizations.

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SALES DEPARTMENT

 Organisation StructureOrganisation Structure

 Levels of Management and HierarchyLevels of Management and Hierarchy

RESPONSIBILITIES OF SALES MANAGER

 Determining Sales force objectives and goalsDetermining Sales force objectives and goals

 Finalizing Sales force organisation, size, territory and quotaFinalizing Sales force organisation, size, territory and quota  Forecasting and budgeting Sales Forecasting and budgeting Sales

 Selecting recruiting and training the sales forceSelecting recruiting and training the sales force  Motivating and leading the sales forceMotivating and leading the sales force

 Designing the compensation plan and control systemDesigning the compensation plan and control system

 Designing career growth plans and building relationship Designing career growth plans and building relationship

strategies with key customers strategies with key customers

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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

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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 Sales Planning, Forecasting and Quota Setting Sales force deployment, territory Design& route planning

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Key Decisions in Formulation of Sales Strategy

 How the personal selling efforts be dovetailed to the How the personal selling efforts be dovetailed to the

company’s environment and integrated with other elements company’s environment and integrated with other elements

of marketing strategy. of marketing strategy.

 In what way the potential customers can be best In what way the potential customers can be best

approached, persuaded and serviced. approached, persuaded and serviced.

 Organization of sales force to manage various types of Organization of sales force to manage various types of

customers effectively and efficiently. customers effectively and efficiently.

 Level of performance each member of the sales force is Level of performance each member of the sales force is

expected to attain during planning period under expected to attain during planning period under

consideration. This involves forecasting, quota fixing, consideration. This involves forecasting, quota fixing,

budget setting. budget setting.

 Deployment of sales force as per forecasts and accounts. Deployment of sales force as per forecasts and accounts.

This involves deciding territories, allocation of territories to This involves deciding territories, allocation of territories to

sales people. sales people.