INTRODUCTI

ON TO
SALES
MANAGEME
NT
P R E PA R E D B Y: D R . R I C A R D O S .
JIMENEZ,LPT
I . E V O LU T I O N O F
SALES
MANAGEMENT
I. EVOLUTION OF SALES
MANAGEMENT

• Before the industrial revolution, which began about 1760 AD in England,

small-scale manufacturers had a commanding influence on the economy.
Manufacturing received most of the attention, because that was the major
problem. Selling goods to nearby customers was done without any problem.

• After the industrial revolution in UK and the American Revolution in the USA,
large-scale manufacturing organizations started dominating the economy.
Separate functional departments were established, which included
manufacturing, finance and sales.
I. EVOLUTION OF SALES
MANAGEMENT

• Due to manufacturing of large quantities of goods, selling to nearby

markets was not adequate and there was a need to expand the market.
This was possible with the involvement of wholesalers and retailers, selling
the company’s good to consumers who were located far away from the
manufacturing unit.
WHAT IS SALES
MANAGEMENT?
One of the most acceptable definitions, from American Marketing
Associations, is as follows:
• “Sales management means 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
salesforce”.
• “the management of salesforce”
 AND
I M P O RTA N C E
OF SALES
MANAGEMENT
II. NATURE AND IMPORTANCE OF
SALES MANAGEMENT

The nature and characteristics of sales management can be explained by:

• its integration with marketing management,
• relationship selling,
• varying sales responsibilities.
INTEGRATION WITH
MARKETING
MANAGEMENT
A company’s marketing team typically consist of two basic groups:
• field selling (or personal selling) team, and
• head-quarter marketing team.
INTEGRATION WITH
MARKETING
MANAGEMENT
These headquarter based service and support functions are:
• Promotion
• Marketing research
• Marketing logistics
• Customer service
• Co-ordination
RELATIONSHIP SELLING

Every relationship is an exchange, which is the process of obtaining a desired

product or service from someone by offering something in return.

In practice, the attitude and culture of the organization are reflected in the
attitude and behavior of individual buyers and salespersons.
VARYING SALES
RESPONSIBILITIES/SALES POSITIONS

Selling includes a variety of sales jobs, which are different from one another.

The six sales positions or categories:

• Deliverer or delivery salesperson (Response selling)
• Order taker (Response selling)
• Sales support people Missionary (Missionary selling) Salespeople
• Technical sales support/sales engineer (Technical selling)
• Demand Creator or Order-getter (Creative selling)
• Solution Vendor (Business selling) or order-getter
IMPORTANCE OF PERSONAL SELLING
AND SALES MANAGEMENT

Personal selling or sales is one of the most exciting, financially rewarding and
challenging careers.

Salespeople are among the best paid people in business.

Sales management is the only function or department in an organization that

generates revenue (or money). All other departments spend the money.
III. ROLE AND
SKILLS OF
MODERN SALES
MANAGERS
III. ROLE AND SKILLS OF MODERN
SALES MANAGERS

The role of a sales manager in the modern company has changed.

Some of the important changes in the roles of the modern sales manager are as
follows:
• Playing a strategic role
• Working as a member of the corporate team
• Working as a team leader
• Managing multiple sales channels
• Using latest technologies
• Continually updating information and understanding the changes
SKILLS OF A SALES
MANAGER
The skills that are critical for the success of a sales manager are:
• People skills
• Managing skills
• Technical skills
I V. T Y P E S O F S A L E S
MANAGERS/SALES
MANAGEMENT
POSITIONS
IV. TYPES OF SALES MANAGERS/SALES
MANAGEMENT POSITIONS

There are three levels of sales managers in the organizational hierarchy.

These are:
• Strategic or top-level managers,
• Tactical or middle-level managers, and
• Operational or first-line managers.
TOP-LEVEL (STRATEGIC)
SALES MANAGERS
• The highest level in sales management is often called vice president (sales),
or general manager (sales), or national sales manager.

• They are responsible for long-term marketing or sales planning, including

scanning external environment, setting long-term and short-term objectives
and goals, developing strategies for achieving them, making decisions for
implementing strategies and action plans, and controlling the performance.
MIDDLE-LEVEL
(TACTICAL) SALES
MANAGERS
• These positions mostly carry the title of regional, zonal or divisional sales
manager, whose major responsibilities are to manage several branches or
districts reporting to them and also to implement the strategies and action
plans approved by the top-management.

• In some companies, these positions are eliminated in order to make the

organizations flatter.
FIRST-LINE (OPERATIONAL) SALES
MANAGERS

• This is the first level of sales management with titles such as branch sales
managers, are sales managers, or district sales managers.

• They are directly responsible to achieve sales goals and objectives by

providing day-to-day supervision to salespeople.
STAFF SALES
MANAGEMENT POSITIONS
• In most medium and large sized organizations, there are staff managerial
positions, which arrange assistance or help to the line sales managers and
the salespeople.

• Sales training manager, customer service manager, or sales co-ordination

manager are some of the examples of staff sales management positions.
SALES AS A CAREER

• The path to a career in sales management mostly starts with the position of
a sales trainee or sales representative.

• Many people find their career opportunity in sales and marketing.

• Generally, sales offers more jobs than any other area of marketing, because
each product or service has to be sold by a salesperson either to a
household consumer, a manufacturing firm, an intermediary like a
distributor or retailer, an institution like a hospital or a college, or to a
government organization like railways.
SALES AS A CAREER

• Sales is also one of the most financially rewarding occupations.

• Sales career can hardly be boring, because it deals with people, whose
wants or needs are ever-changing.

• More CEOs come from sales and marketing background than from any other
financial areas.

• Hence, it is said that a sales career is one of the fastest routes to the top of
an organization.
 SALESPERSON TO SALES
MANAGER
Most companies do consider top performing salespeople, when a
vacancy for the first-line sales manager develops.

Some of the important qualities to look for in selecting a person for

the position of a sales manager from a group of salespeople are as
follows:
• An ability to be a team-player.
• Discipline in work habits like punctual in attending meetings,
customer appointments, and so on.
• An ability to manage a team and good communication skills.
• Selling skills – good in selling products, services or ideas.
• Well balanced person with controlled self-esteem.
 SALESPERSON TO SALES
MANAGER
After the right person is selected for the position of a first-line sales
manager, it is important that the selected person is given a short
training on sales management, because the person should be made
aware of the changes that take place due to promotion to the
position of a sales manager from the position of a salesperson.
Some of the changes are indicated hereunder.
• Changes in goals and objectives
• Change in responsibilities
• Change in views
• Change in skills requirement
• Change in relationships
WOMEN IN SALES

• a survey conducted in USA indicated that in early 1980s only 10 percent of

outside salespeople were women in USA and that the figure was 24 percent
in 1999.

• In yet another study done in 1988 in USA, the percentage of female

salesforce was between 40 and 61, in some industries such as textiles,
apparel, utilities and financial services.
 V. S A L E S
OBJECTIVES,
S T R AT E G I E S A N D
TA C T I C S
V. SALES OBJECTIVES, STRATEGIES
AND TACTICS

• Sales managers are guided by the strategic planning at company level and
at the marketing level, when they prepare a sales plan consisting of sales
objectives, sales strategies, and tactics (or action plans).

• Since we shall discuss strategic planning at corporate, marketing and sales

levels in following modules, we shall focus here on short-term sales
objectives, strategies and tactics.
 SALES OBJECTIVES

Objectives are the statements of intents ad when are quantified to

specific and measurable targets with respect to time periods, they
are called goals.
SALES STRATEGIES AND
TACTICS
The sales strategies are mostly related to salesforce strategies.

Let us consider a company, Crompton Greaves Ltd., which wants to achieve the
sales objectives of increase in sales volume for its product-electric motors, by 15
percent and reduce the selling expenses by 10 percent in the year 2005-06. The
marketing strategies were:
• enter export markets,
• penetrate existing domestic markets,
• utilize existing Salesforce resource optimally, and
• use effective and efficient channels
SALES STRATEGIES AND
TACTICS
• From the marketing strategies, the sales strategies and the tactics were
developed.
 VI. EMERGING
TRENDS IN SALES
MANAGEMENT
 VI. EMERGING TRENDS IN SALES
MANAGEMENT

To be successful in a changing marketing environment, it is important that sales

managers understand emerging trends in the following areas:
• Global perspective.
• Revolution in technology.
• Customer relationship management (CRM).
• Salesforce diversity.
• Team selling approach.
• Managing multi-channels.
• Ethical and social issues.
• Sales professionalism.
GLOBAL PERSPECTIVE
REVOLUTION IN
TECHNOLOGY
CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
SALESFORCE DIVERSITY
TEAM SELLING
APPROACH
MANAGING MULTI-
CHANNELS
ETHICAL AND SOCIAL
ISSUES
SALES PROFESSIONALISM