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• Sales management is attainment of an
organization's sales goals in an effective &
efficient manner through planning, staffing,
training, leading & controlling organizational
resources. Revenue, sales, and sources of
funds fuel organizations and the management
of that process is the most important function.
• 1970s: Electronic Funds Transfer (EFT)
– Used by the banking industry to exchange account information over
• Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-
commerce within companies
– Used by businesses to transmit data from one business to another
• 1990s: the World Wide Web on the Internet provides easy-to-use
technology for information publishing and dissemination
– Cheaper to do business (economies of scale)
– Enable diverse business activities (economies of scope)
Role Of Technology
With the benefits being ultimately customer
orientated technology is enabling retail businesses
to become better equipped in the modern
economies of the world. The progression of
technology will allow organizations to become cost-
effective, visible and improve the delivery of
products along the supply-retailer customer chain.
The advantages of technology are numerous and
beneficial, therefore, the future role of technology in
the economy could play an influential role.
The hardware and software
tools that have now become
almost essential for retailing
can be classified into 3
1. Customer Interfacing
• Bar Coding and Scanners .
Point of Sale (POS) systems
use scanners and bar coding
to identify an item, use pre-
stored data to calculate the
cost and generate the total
bill for a client.
eg: Big Bazaar, Monika
• Internet is also rapidly evolving as a customer interface, removing the
need of a customer physically visiting the store.
eg: Walmart, asian paints.
• Payment through credit cards has become quite widespread and this
enables a fast and easy payment process. Electronic cheque conversion,
a recent development in this area, processes a cheque electronically by
transmitting transaction information to the retailer and consumer's
eg: ebay, Times Shopping.
2. Operation Support Systems
• ERP System
Various Enterprise Resource Planning (ERP) vendors have
developed retail-specific systems which help in integrating
all the functions from warehousing to distribution, front
and back office store systems and merchandising. An
integrated supply chain helps the retailer in maintaining
his stocks, getting his supplies on time, preventing stock-
outs and thus reducing his costs, while servicing the
customer better. Its includes:
– Inventory management Software.
– Helps in analyzing various activities of different department.
– Automatic order placement.
– Helps in minimizing the lead time.
• CRM Systems
The rise of loyalty programs, mail order and the Internet has provided
retailers with real access to consumer data. Data warehousing and
mining technologies offers retailers the tools they need to make sense of
their consumer data and apply it to business. It includes:
- use Database Management System (DBMS)
- all queries are recorded for future strategy development.
• Advanced Planning and Scheduling
APS systems can provide improved
control across the supply chain, all the
way from raw material suppliers, right
through to the retail shelf. They
enable consolidation of activities such
as long term budgeting, monthly
forecasting, weekly factory scheduling
and daily distribution scheduling into
one overall planning process using a
single set of data.
3. Strategic Decision Support
• Store Site Location
Demographics and buying
patterns of residents of an area
can be used to compare various
possible sites for opening new
stores. Today, software
packages are helping retailers
not only in their locational
decisions but in decisions
regarding store sizing and
floor-spaces as well.
• Visual Merchandising
The decision on how to place and stack items in a store is
no more taken on the gut feel of the store manager. A larger
number of visual merchandising tools are available to him
to evaluate the impact of his stacking options
• Increased Market Penetration.
• Helps in reducing cost.
• Surveillance of sales executive
• Protection against shop lifting by use of loss prevention
systems including burglar alarms ,CCTV.
• Real time information helps in automatic order placement.
• Analysis of past records to estimate future and devise
strategies for future.
• Training of work force.
• Efficient Supply Chain Management.
• Efficient customer relation management.
• Upfront Cost
New technologies sometimes involve high upfront costs. Hiring new workers can
be relatively cheap in the short term compared to the financial outlay required to
purchase technology. A new worker typically works a few weeks or a month before
he is paid, meaning the worker generates income before a company has to spend
money. Technology requires a large initial investment before the technology
actually assists with production.
• Training Cost
Companies installing new technology must bear the cost of training workers to use
it. Upgrading from an existing technology to a new one slows productivity in the
short term. In some cases, new technologies may not be more efficient than old
technology, which can result in wasted investment and training hours. For
instance, many businesses opt to run their computers on outdated operating
systems and software, even though upgrades are available. Converting to new
software takes time and money and the benefits might be minimal.
Technology may allow one worker to produce the same
amount as two or three workers without technology. This
increase in productivity can make certain jobs obsolete
or redundant, leading to layoffs and unemployment.
Furthermore, once the initial cost of installing new
technology has been paid, the cost of maintaining the
technology is often lower than the cost of paying for an
equivalent amount of labour productivity. Long-term
saving make technology attractive to large businesses,
sometimes to the detriment of workers.