Ssm lecture-03 (introduction to sales management)

07/06/10 1
By :
Prof. Amit Kumar

07/06/10 2
“A student pursuing management education from IILM-
Graduate School of Management, for example may find
himself or herself placed in a firm as a Sales Manager.
Our goal is to prepare the student for the exciting
challenges related to leading sales organizations in
today’s hyper-competitive global economy”.
IILM-GSM
Importance of this course
Selling & Sales Management

07/06/10
IILM-GSM
Selling & Sales Management

07/06/10
Contents
• Introduction to Sales Management
• Evolution of Sales Management
• The Nature and Role of Sales Management
• The Marketing Concept
• Marketing Management Process
• Sales Management Process
• Relationship between Sales & Marketing
• Emerging Trends in Sales Management
IILM-GSM
Selling & Sales Management Introduction to Sales Management

07/06/10
Robert Louis Balfour Stevenson (13 November 1850
– 3 December 1894) was a Scottish novelist, poet,
essayist and travel writer. His most well known books
include ‘Treasure Island and Kidnapped’.
He said 'everybody is surviving on
selling something to someone'.
IILM-GSM
Introduction to Sales Management

07/06/10
The history of salesmanship is as old as
human civilization.
The sales people in the past were not held in high
esteem by the society. The Roman meaning of the
word salesperson is 'cheater' and Mercury, the God
of cunning and barter, was regarded as the patron
deity of merchants and traders.
IILM-GSM
Evolution of Sales Management

07/06/10
The first salespeople in the US were the Yankee peddlers
who carried clothing, spices and household articles from
one part of the country to another part. In India, they are
called 'pheriwallahs'. These move village to village and
sell sarees, dress materials, and spices mostly in the rural
markets of India, because rural housewives have lesser
mobility than urban housewives.
These salespeople move from the manufacturing bases of
the country to different consumption centers in India.
IILM-GSM

07/06/10
The techniques of modern sales management and selling
techniques were refined by John Henry Patterson,
widely known as the father of modern sales
management.
Thomas J. Watson was trained by Mr. Patterson who
later founded the IBM. Patterson was the pathfinder who
showed the strategy and skill required to transform a
sales force into an effective workforce for generating
sales and profits.
IILM-GSM

07/06/10
Before you try to convince anyone else, be
sure you are convinced, and if you cannot
convince yourself, drop the subject.
John Henry Patterson
IILM-GSM

07/06/10
Today, the process of sales management has undergone
numerous changes in terms of strategy, practice, and
technological adaptation to achieve the desire sales goal.
A sales manager have to perform duties such as
recruiting, selecting, motivating, forecasting, controlling
and administrating salespeople, while performing the
primary responsibility of revenue generation for the firms.
IILM-GSM

07/06/10 11
Nature and Role of Sales Management
The basic function and role of selling is to generate
sales and earn revenue for an organization.
Today's selling approach, also highlights maintaining good
customer relationship, managing customer complaints
and building brand value in the eyes of the customer.
The reason behind growing importance of salesperson is
that he is one of the most vital contact points with the
customers. Other contact points can be ATMs, Internet
Functions of a sales manager can be classified into two:
personal selling & sales management.
IILM-GSM

07/06/10 12
Nature and Role of Sales Management
 The determination of sales force objectives & goals
 Sales force organization, size, territory, and quota
finalization
 Sales forecasting and budgeting
 Sales force selection, recruitment, and training
 Motivating and leading the sales force
 Designing compensation plan and control systems
 Designing career growth plans and building
relationship strategies with key customers
IILM-GSM

07/06/10
Marketing Concepts
Philosophy of Marketing
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Holistic Marketing Concept
IILM-GSM

07/06/10
The Production Concept
The production concept is one of the oldest
concept in business.
• It holds that consumers will prefer products that are
widely available and inexpensive.
• Focus on achieving high production efficiency, low
costs and mass distribution.
• Focus on ‘Economies of scale’
In microeconomics, EOS are the cost advantages that a
business obtains due to expansion. They are factors that
cause a producer’s average cost per unit to fall as scale is
increased.
IILM-GSM

07/06/10
The Product Concept
The product concept holds that consumers will
favor those products that offer the most quality,
performance or innovative features.
Focus on making superior products/services
and improving them over time.
IILM-GSM

07/06/10
The Selling Concept
• Selling concept holds that consumers, if left alone, will
not buy enough of the organization’s product.
• The organization must, therefore, undertake an
aggressive selling and promotion effort.
Selling concept is practiced most
aggressively with unsought goods, goods
that buyers normally do not think of buying,
such as insurance, and encyclopedias.
IILM-GSM

07/06/10
The Selling Concept
Most firms practice the selling concept when they
have overcapacity. The aim is to sell what they
make rather than make what the
market/customer wants.
Selling focuses on the needs of the seller;
marketing on the needs of the buyer.
IILM-GSM

07/06/10
The Marketing Concept
• The marketing concept emerged in the mid-1950s.
• Instead of a product-centered,' make-and-sell’
philosophy, business shifted to a customer-
centered,' sense-and-respond’ philosophy.
• Instead of hunting, marketing is gardening. The
job is not to find the right customers for your
products, but the right products for your customers.
IILM-GSM

07/06/10
Holistic Marketing Concept
• The most advance concept of marketing.
• Holistic marketing concept is based on the development,
design and implementation of marketing programs, process,
and activities that recognizes their breadth and
interdependencies.
• Holistic marketing recognizes that “everything
matters” with marketing and a broad, integrated
perspective is often necessary.
• The four components of holistic marketing are
1. Relationship marketing
2. Integrated marketing
3. Internal Marketing
4. Social Responsibility Marketing
IILM-GSM

07/06/10
Holistic
Marketing
Internal
Marketing
Social
Responsible
Marketing
Relationship
Marketing
Integrated
Marketing
Marketing
Department
Senior
Management
Other
Department
Communications Product &
Services
Channels
Ethics/
Legal
Environment Community Customers Channels Partners
IILM-GSM

07/06/10
• Aim of building mutually satisfying long-term
relationships with key parties-….in order to earn &
retain their business.
• Marketing must not only do customer relationship
management (CRM), but also partner relationship
management (PRM).
• Ultimate outcome of relationship marketing is the
building of unique company asset called a market
network.
• A marketing network consists of company and its
supporting stakeholders with whom it has built
mutually profitable business relationships.
1. Relationship Marketing
IILM-GSM

07/06/10
Two key themes of integrated marketing are:
• Many different marketing activities are
employed to communicate and deliver the value
• All marketing activities are coordinated to
maximize their joint efforts
2. Integrated Marketing
Company
Product
Price
Services
Advertising
Events
Direct Marketing
Personal selling
Sales Promotion
Distribution
channels
Target
Customers
Public Relation
Offering mix
Communication mix
Marketing-Mix strategy
IILM-GSM

07/06/10
• Internal marketing is the task of hiring, training, &
motivating able employees who want to serve
customers well.
• It makes no sense to promise excellent service before
the company’s staff is ready to provide it.
• Internal marketing must take place at two levels.
1. At one level, the various marketing functions-sales
force, advertising, customer service, product
management, marketing research-must work together.
2. At another level, marketing must embraced by other
department; they must also" think customer". Marketing
is not a department so much as a company orientation.
3. Internal Marketing
IILM-GSM

07/06/10
• Social responsibility also requires that
marketers carefully consider the role that
they are playing and could play in terms of
social welfare.
• The societal marketing concept calls upon
marketers to build social ,ethical,
environmental & legal considerations into
their marketing practices.
IILM-GSM

07/06/10
The Fast-food hamburger industry offers tasty but unhealthy food.
The hamburgers have a high fat content, and the restaurants
promote fries and pies, two products high in starch and fat. The
products are wrapped in convenient packaging, which leads to
much waste. In satisfying consumer wants, these restaurants
may be hurting consumer health and causing
environmental problems.
IILM-GSM

07/06/10
Recognizing these criticisms, companies like
McDonald’s have added healthier items to their
menus (e.g. Salads) and introduced environmental
initiatives (e.g. replacing polystyrene foam sandwich
clamshells with paper wraps and lightweight
recycled boxes).
IILM-GSM

07/06/10
What is Marketing Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
- Kotler and Keller
IILM-GSM

07/06/10
Selling is only the tip of the iceberg
“There will always be a need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.”
Peter Drucker
IILM-GSM

07/06/10 29
Factory Factory
Selling and
promoting
Profits though
sales volume
Selling concept
Market concept
Market Customer
needs
Coordinated
marketing
Starting
point
Focus Means Ends
Profits through
customer satisfaction
Difference Between Sales and Marketing
IILM-GSM

07/06/10 30
Formulation of a Strategic Sales Programme
Implementation of the Sales Programme
Evaluation and Control of Sales Force Performance
Sales Management Process
IILM-GSM

07/06/10 31
There are five key decisions that a sales manager needs to
take at this stage:
1. The sales manager should decide on how the personal selling
efforts can best be dovetailed to the company’s environment and
integrated with other elements of the marketing strategy. This
decision is set to explain the firm’s personal the firm’s personal
selling strategy.
2. The next decision is to find out and decide in what way the
potential customer’s can best be approached, persuaded and
serviced. This means deciding the kinds of account management
policies the firm should adopt. This is essentially the decision
related to sales approach.
Key Decisions in Sales Management Process
IILM-GSM

07/06/10 32
There are five key decisions that a sales manager needs to take at this stage:
3. The third decision is the organization of the sales force to call and
manage various types of customers as effectively and efficiently as
possible. This is related to the design of sales organization suitable to
the market.
4. The fourth decision is related to the level of performance each
member of sales force is expected to attain during the planning period
under consideration. This involves decisions related to forecasts,
quotas and budget-setting.
5. The fifth decision is related to the deployment of the firm’s sales force
in the light of the account management policy and demand forecasts.
The decision involves deciding on the sales territories and allocation
of these territories to the salespeople.
Key Decisions in Sales Management Process
IILM-GSM

07/06/10 33
Technology
Relationship sellingCustomer orientation
Global and ethical
Issues
New selling methods
Diversity
Emerging trends
in sales
management
Emerging Trends in Sales Management
Technology
IILM-GSM

Ssm lecture-03 (introduction to sales management)

More Related Content

What's hot (20)

Similar to Ssm lecture-03 (introduction to sales management) (20)

More from Revisiting Strategy (20)

Ssm lecture-03 (introduction to sales management)

Editor's Notes