1. SALES & RETAIL MANAGEMENT
INTRODUCTION TO SALES MANAGEMENT
MODULE 1
©Prashanth Mahadevan

2. Module 1 Overview
• Meaning, Evolution, Importance, Per
sonal selling
• Emerging trends in Sales
Management
• Elementary study of sales
organizations
• Qualities & responsibilities of sales
manager
• Types of Sales Organizations

3. Meaning of sales Management
• According to the American Marketing
Association, Sales management is
“The planning, direction, and control of
personal selling, including recruiting,
selecting, equipping, assigning,
routing, supervising, paying and
motivating as these tasks apply to the
personal sales force”.

4. Evolution of Sales Management
Pheriwallas - the first sales people
Pack Peddlers – the shrewd,
unprincipled tricksters
Greeters and Drummers –
intermediary to buyer
Modern sales management

5. Importance of Sales Management
• Sales force is the primary contact point
• In most industrial markets, personal selling
comprises the majority of promotional
budget.
• Customer considers salesperson as the
company selling the product.
• Internet and web based platforms for
interaction with customers

6. Personal Selling
 Prospecting,
 Formulating prospect definition
 Searching out potential customers
 Qualifying and determining requirement
 Relating and converting them.
Importance of Personal selling
 It enhances customer’s confidence in the seller.
 It promotes long-term business relations through personal
intimacy.
 It provides a human touch to business organisation.
 It helps facilitate the seller to understand each customer’s
needs and preferences more clearly.

7. Importance (Contd.)
 It helps satisfy a customer by modifying the
product as per the customer’s choice and
preference.
 Personal selling followed by personal service helps
to build long term relationship with the customer.
 It is a powerful tool of convincing customer about
the product.
 Through personal selling the time lag between
introducing a product through the media and
actually selling it is reduced.
 It provides prospective customer with a better
understanding of the product and an interactive
opportunity to liaise with the sales personnel

8. Types of Personal Selling
Personal Selling
selling with unusual
Service selling Developmental selling
creativity
Salesperson of tangible
Inside order taker product
Back- door salesperson
Salesperson of intangible Salesperson engaged in
Delivery salesperson product multiple sales
Merchandising salesperson
Missionary
Technical salesperson

9. Types of Selling
• Industrial Selling
• Selling to business Users
• Institutional selling
• Retail Selling
• Selling to government
• Service Selling

10. Emerging trends in Sales
Management
• Relationship selling
• Global and ethical issues
• New selling methods
• Global perspective
• Revolution in technology
• Customer relationship management (CRM)
• Sales force diversity
• Team selling approach
• Managing multi-channels
• Ethical and social issues
• Sales professionalism

11. Sales Organization
• A sales organization is an organization of
individuals either working together for the
marketing of products and services
manufactured by an enterprise or for
products that are procured by the firm for
the purpose of reselling.

12. Purpose of Sales Organization
 To permit the development of specialists
 To assure that all necessary activities are
performed
 To increase co-ordination and balance
 To define authority
 To economize on executive time

13. Factors affecting Sales Organization
• Product and Service Related Factors
• Organization – related Factors
• Marketing Mix-related Factors
• External Factors

14. Organizational Principles
• Span of Control
• Centralization and Decentralization
• Integration and Coordination

15. Types of Sales Organizational
Structures
 Line Organisation
 Line and Staff Organization
 Functional Sales Organization
 Horizontal Organization

16. Specialization within Sales
Org.
• Geographic Specialization
• Product Specialization
• Market Specialization
• Combination Sales Organizations

17. Alternate Sales Org. For
Major Customers
• Creating a major account
management team
• Using existing sales managers
• Creating a separate division or sales
force

18. Emerging Organizational Design
Agency and Distribution Selling
Shared Sales Force
Telemarketing
Team- based selling

19. Size of Sales Force
Affordability Method
Workload Method
Breakdown Method

20. Qualities of a Sales Manager
 Good communicator, catalyst and planner.
 Skillful manipulator.
 Amalgamator, a consolidator, and orchestrator
 Successful mentor
 Innovator and creator of new ideas and promotion.
 Over achiever rising to the challenge of new
forecast each year.
 Able to handle unanticipated difficulties and
events.
 Opportunist and advisor.
 Team mate, umpire and referee

21. Responsibilities
 Sales planning and budgeting
 Estimating demand and forecasting of sales
 Determination of size and structure of sales
organisation.
 Recruiting , selecting and training of sales force.
 Setting sales quota.
 Compensating, motivating and leading sales force.
 Analysing sales volume , cost and profit.
 Measuring and evaluating sales force performance.
 Monitoring marketing environment

22. Methods of Sales Forecasting
 Jury of Executive opinion
 The Delphi Technique
 Survey of Customer buying plans
 Poll of Sales Force Opinion
 Projection of Past sales
(i) Time Series Analysis – Trend Projections
(ii) Naïve Method
(iii) Graphic Method
(iv) Method of semi-averages
(v) Method of moving averages
(vi) Regression analysis

23. Thank you