UNIT 1 – SALES MANAGEMENT
Chapter 1: Evolution of Sales Function
🔹 1.1
Traditional Selling Approaches
1. Product Orientation (Production Era)
o Focus: Efficient production of goods.
o Belief: Good products sell themselves.
o Customer Role: Passive receivers.
o Example: Ford’s mass production of the Model T car.
2. Sales Orientation (Selling Era)
o Focus: Pushing products to consumers.
o Tactics: Aggressive advertising, door-to-door selling.
o Customer Role: Persuadable targets.
o Example: Insurance sales, encyclopedias in the 1950s.
🔹 1.2
Modern Selling Approaches
1. Marketing Orientation
o Customer-centric strategy.
o Focus: Identifying needs and offering tailored solutions.
o Example: Amazon’s recommendation system.
2. Relationship Selling
o Building trust and emotional connection.
o Long-term over short-term sales.
o Techniques: CRM systems, loyalty programs.
3. Consultative Selling
o Salesperson acts as an advisor.
o Solutions are customized after understanding client’s problem.
o Example: B2B software solutions sales.
4. Digital & Omni-channel Selling
o Use of digital tools: eCommerce, social media, automation.
o Integrated selling across platforms: online + offline.
🔹 1.3
Factors Driving Evolution
• Technological Advancements: CRM, AI, sales automation.
• Global Competition: Broader choices for consumers.
• Customer Awareness: Empowered buyers demand value.
• Shift to Service Economy: Greater focus on intangible product selling.
Chapter 2: Objectives of Sales Management Positions
Sales management ensures that the sales team meets organizational goals effectively and
ethically.
🔹 2.1
Achieving Organizational Sales Targets
• Define realistic, SMART goals (Specific, Measurable, Achievable, Relevant, Time-
bound).
• Set individual targets for sales reps.
• Use KPIs like conversion rate, revenue growth.
🔹 2.2
Profit Maximization
• Focus on high-margin products.
• Reduce customer acquisition cost (CAC).
• Optimize pricing and discounting strategies.
🔹 2.3
Market Expansion
• Geographical expansion (entering new cities or regions).
• Diversification (new products/services).
• Online channels to tap untapped customer bases.
🔹 2.4
Customer Retention & Satisfaction
• Use of after-sales services.
• Loyalty programs and feedback collection.
• Regular engagement through emails, calls, service reminders.
🔹 2.5
Sales Team Development
• Hiring right talent.
• Training in negotiation, product knowledge, CRM usage.
• Motivation through incentives, bonuses, recognition.
🔹 2.6
Monitoring and Control
• Monitor sales team activities.
• Analyze sales reports and forecasts.
• Provide performance feedback.
Chapter 3: Functions of Sales Executives
Sales executives are the bridge between the company and its customers.
🔹 3.1
Prospecting
• Identifying potential leads or clients.
• Sources: referrals, web inquiries, cold calls, social media.
• Tools: LinkedIn, CRM software.
🔹 3.2
Pre-approach & Planning
• Research about the client’s business, needs, and preferences.
• Customize the sales pitch accordingly.
🔹 3.3
Sales Presentation & Demonstration
• Explain product features & benefits clearly.
• Use storytelling, demos, or visual aids.
• Focus on solving customer pain points.
🔹 3.4
Handling Objections
• Active listening to concerns.
• Clarifying doubts with data, testimonials, guarantees.
• Example: Price concern can be countered with value addition.
🔹 3.5
Negotiation & Closing the Sale
• Agreeing on terms like pricing, delivery, warranty.
• Types of closes: Assumptive, Summary, Urgency-based.
• Example: “Let’s proceed with the paperwork.”
🔹 3.6
After-Sales Service
• Checking customer satisfaction post-sale.
• Solving installation, usage, warranty issues.
• Encouraging repeat purchases.
🔹 3.7
Customer Feedback & Retention
• Conduct surveys or calls.
• Identify improvement areas.
• Turn happy customers into brand advocates.
Chapter 4: Relationship of Sales Executives with Other Executives
Sales executives interact across departments to deliver value.
🔹 4.1
Sales & Marketing Relationship
• Marketing provides:
o Market research insights
o Advertising material
o Lead generation
• Sales provides:
o Customer feedback
o Competitor insights
o Real-time market response
🔹 4.2
Sales & Production Coordination
• Inform production about:
o Forecasted demand
o Popular models or variants
o Customer complaints related to quality
• Ensures timely delivery and stock availability.
🔹 4.3
Sales & Finance Coordination
• Work on:
o Pricing strategy
o Payment terms (credit policies, discounts)
o Sales forecasting for revenue planning
• Sales team ensures timely collections.
🔹 4.4
Sales & Human Resources
• Collaborate to:
o Hire right-fit sales reps.
o Design sales training programs.
o Evaluate performance (KPIs, targets, appraisal systems).
o Resolve interpersonal issues in teams.
🔹 4.5
Sales & Customer Service
• Sales initiates the relationship.
• Customer service nurtures it post-sale.
• Teamwork required for:
o Handling complaints and returns.
o Technical support.
o Building trust and satisfaction.
✅ Summary: Unit 1 Key Takeaways
Topic Key Point
From product-focused to relationship-driven, customer-centric
Evolution of Sales
selling.
Objectives of Sales Mgmt Sales targets, profits, retention, team development, expansion.
Functions of Sales
Prospecting, presenting, handling objections, closing, feedback.
Executives
Sales must coordinate with marketing, production, finance, HR,
Interdepartmental Relations
service.
