1. Sales Management
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2. Sales Management
1. Sales – Cost of Sales = Gross Margin
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3. Sales Management
1. Sales – Cost of Sales = Gross Margin
GM – Expenses = Net Profit
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4. Sales Management
1. Sales – Cost of Sales = Gross Margin
GM – Expenses = Net Profit
2. Volumes vs Profits
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5. Sales Management
1. Sales – Cost of Sales = Gross Margin
GM – Expenses = Net Profit
2. Volumes vs Profits
3. Marketing vis-à-vis Sales
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6. 4. Responsibilities
 Sales Planning / Budgeting
 Estimating Demand / Forecasting Sales
 Understanding the Sales Organization
 Recruiting / Training Selecting Sales Force
 Compensating / Motivating / Leading
 Sales Quotas
 Analyzing Sales Cost / Volume / Profit
 Evaluating Sales Force
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7. 5. Recent Trends in Sales Management
 Foreign Competition
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8. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
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9. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
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10. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
 IT & Communications
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11. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
 IT & Communications
 Women in Sales Careers
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12. 5. Recent Trends in Sales Management
 Foreign Competition
 Rising Customer Expectations
 Increasing Buyer Expertise
 IT & Communications
 Women in Sales Careers
 Controlling Costs
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13. Effective Sales Executive
What does he do?
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14. Effective Sales Executive
What does he do?
i. Operating Function
ii. Planning Function
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15. Planning Function
 Selling Accounts
 Sales Force Management
 Coordinating with other functions
 Dealer Handling
 Communicating / Coordinating with Marketing
 Sets Personal Selling Goals
 Sales Organization
 Selling Strategies
 Staffing, Developing Skills
 Providing Leadership
 Developing Sales Programs
 Customer / Dealer Relationships
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16. The Effective Sales Executive
Who is an effective sales executive?
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17. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
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18. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
 Able to select & train capable subordinates &
delegates authority – empowerment – least
supervision
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19. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
 Able to select & train capable subordinates &
delegates authority – empowerment – least
supervision
 Time utilization
Time for thinking & planning
Time for office / field
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20. The Effective Sales Executive
Who is an effective sales executive?
 Defines exact function & duties of person vis-à-vis
company goals
 Able to select & train capable subordinates &
delegates authority – empowerment – least
supervision
 Time utilization
Time for thinking & planning
Time for office / field
 Act as skilled leaders, motivate people
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21. Interrelationships
Top Management
 Integrate personal goals with organization
 Don’t aim to be indispensable; delegate
authority
 Good problem solvers & decision makers
 Keep management involved
 Listens & keeps record of important
conversations
 Follows given code of conduct
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22. Product Management
Regular involvement for new products, product
quality, services rendered
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23. Pricing Management
Since sales has the pulse of the market policies are co-
operative decisions.
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24. Distribution Management
Marketing channels determine the pattern of sales force
operations – the no. of outlets.
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25. Promotion Management
 SEs implement promotional plans.
 Personal selling is an important promotional
tool, expenses have to be controlled.
 Provide important information to advertising
department regarding consumers, motives,
behaviours
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26. Sales Planning
1. Setting Objectives
a) Internal Situation Analysis
 SWOT of Sales Force
 Who will sell, what selling methods,
what sales tools, what are available
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27. Sales Planning
1. Setting Objectives
a) Internal Situation Analysis
 SWOT of Sales Force
 Who will sell, what selling methods, what sales tools,
what are available
b) External Environment Audit
 PEST Analysis
 Competition
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28.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
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29.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
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30.  Sales objectives derived from broader Marketing
objectives / Corporate objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
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31.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
 Long Term vs Short Term, Accuracy decreases over
long periods …
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32.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
 Long Term vs Short Term, Accuracy decreases over
long periods …
 Output oriented: ‘Increase Sales’ (X)
Increase Sales by 10%
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33.  Sales objectives derived from broader Marketing
objectives / Corporative objectives.
 Must align with corporate vision
 Set at various levels: Macro (Country / Geographic
region): Micro (Key accounts)
 Long Term vs Short Term, Accuracy decreases over
long periods …
 Output oriented: ‘Increase Sales’ (X)
Increase Sales by 10%
 Measurable: ‘X’ no. of calls / month …
How to measure soft objectives?? Morale?
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34. 2. Determining Operations to meet Objectives
 Decide on Sales Strategies
SS: Operations which organize & direct
sales activities to help achieve objectives
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35. 2. Determining Operations to meet Objectives
 Decide on Sales Strategies
SS: Operations which organize & direct sales
activities to help achieve objectives
 Strategy for each objective ….
In Sync. with Corporate Objective ….
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36. 2. Determining Operations to meet Objectives
 Decide on Sales Strategies
SS: Operations which organize & direct sales activities to
help achieve objectives
 Strategy for each objective ….
In Sync. with Corporate Objective ….
‘Build’ – Emphasis on new / current A/cs
Increase Sales
‘Hold’ – Consolidating relationships to
improve organizational image
‘Harvest’ – Reduce overall operation costs
Sales directed to most
profitable customers
Objectives & strategies: corporate / sales have to be broken into
individual sales objectives.
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37. 3. Organizing for Action
Next Step: Objectives – tactics
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38. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
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39. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
 How is sales department working?
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40. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
 How is sales department working?
 Is compensation plan suitable? Is it in sync. with
industry average?
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41. 3. Organizing for Action
Next Step: Objectives – tactics
 Which customers to target?
 Which products to highlight in range?
 How is sales department working?
 Is compensation plan suitable? Is it in sync. with
industry average?
 How to introduce a new product line.
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42. 4. Implementing
Two fold role of Sales Manager
a) Division of responsibilities among
salespeople; tasks; time sequence;
Review Schedule
b) Communicate to and coach sales people to
implement sales strategies and actions
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43. 5. Measuring Results Against Standards
i. Establish Standards
ii. Measure Performance
iii. Reevaluate and correct variations from
standards
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44. 5. Measuring Results Against Standards
i. Establish Standards
ii. Measure Performance
iii. Reevaluate and correct variations from standards
Performance standards needed to measure results:
Industry averages, past sales force performance
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45. 5. Measuring Results Against Standards
i. Establish Standards
ii. Measure Performance
iii. Reevaluate and correct variations from standards
Performance standards needed to measure results: Industry
averages, past sales force performance
Performance measures:
Sales volumes, selling costs, market shares, profit margins
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46. 6. Re-evaluating and Control
 Can start mid way during implementation
of sales plan or at the end
 Monitored constantly for effective control
and to see objectives are met (annual target
10 crores: 2.5 per quarter)
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47. Why does planning fail?
1. Lack of understanding of important issues:
Sales objective different from corporate
objective….., SM planning without
reference to abilities of sales force,
Environmental changes…., Inadequate
understanding of competitors policies /
organization strength and weaknesses etc.
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48. Why does planning fail?
1. Lack of understanding of important issues: Sales objective
different from corporate objective….., SM planning without
reference to abilities of sales force, Environmental
changes…., Inadequate understanding of competitors
policies / organization strength and weaknesses etc.
2. Absence of proper planning:
SMs: May developed plan which are only numbers and don’t
focus on company issues, extra knowledge environment
competition.
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49. Why does planning fail? (Contd..)
3. Inadequate communication
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50. Why does planning fail? (Contd..)
3. Inadequate communication
4. Lack of sales force involvement:
If sales people are not involved during planning,
they are demotivated
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51. Why does planning fail? (Contd..)
3. Inadequate communication
4. Lack of sales force involvement:
If sales people are not involved during planning,
they are demotivated
5. Inaccuracy in sales planning
Mistakes in forecasting, budgeting and territory
management; plans more accurate with bottoms –
up approach; objectives should be set by top
management and supported by sales managers
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