Sales Management....

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Sales Management:

Sales Management



Sales and Distribution Management:

Sales and Distribution Management Sales and Distribution Strategy Sales involves delivery and transfer of ownership of the product or service to the customer It forms the beginning of the latter part of the supply chain post manufacture Sales constitutes the direct and most intimate contact of the firm makes with its customers Sales is responsible for the fulfillment of the promise made to the customer by its predecessor function-marketing While marketing is responsible for creation of a customer, sales and after sales service are responsible for servicing and retention of the customers

Role of Sales Management:

Role of Sales Management The larger concept of marketing is the creation, servicing and retention of customers and markets This comprises identifying customer wants, designing and developing products/services to meet these wants Sales role-Actual delivery of products/services to the customer maximizing convenience and ensuring satisfaction Finally fulfilling the promise made to the customer through sincere and effective after sales service

Managing the sales force:

Managing the sales force Three fundamental issues: the right organization, the right sales force and the right evaluation and compensation system Key to sales force organization is the level of aggregation over product lines and choice of geographical coverage Most Indian companies have common sales force for all product categories. A few like Philips have segmented sales force viz. audio and video products have separate sales force

The Sales Organization:

The Sales Organization Functions include planning, administrative and executive functions Planning features forecasting, budgeting and formulation of sales policy Administrative function comprises recruitment of sales force, training, appraisal/reward systems and control Executive functions include sales promotion and selling routine i.e. execution of customer orders\ Objective of the sales organization is to ensure achievement of the company’s sales and profit targets

Sales Organization Types:

Sales Organization Types Several types based on competitive specialization of selling orgn. Geographical orgn. most common where all firm’s products sold in each region -assumes demand patterns and associate capability uniformly spread Product type sales organization e.g. pharma cos have medicines, equipment and supplies organized in separate groups


Continue… Organizations based on customer types viz. Industrial and Consumer categorization. IBM, etc. Activity function based including telemarketing, direct selling firms follow this approach Hybrid sales orgns. Large coz evolve into this form of orgn. over time


Forecasting Forecasting may be of total product/service sales or of sub product or individual products or combinations of all While forecasting is essentially a prediction of future sales, it usually is a projection of past sales incorporating credible trends Desirable to give more weightage to recent period sales. At least ten previous periods data should be taken for reliability. Most Indian firms ignore these to their cost


Forecasting For cyclical industries, need to know the length of the cycle Cycles include macro economic cycles. Finally consumer sales to be measured and forecasted and not sales to channel members as is unfortunately done

Sales Budgets:

Sales Budgets Sales budgets are overall sales plans enumerated in financial terms Expenses for promotions and schemes as well as infrastructure like hoardings and shop signage to feature Allowances for spoiled and obsolete product withdrawals to be included Targetted levels of overall receivables and acceptable age of receivables also part of budget


Continue… Budgets should be approved by senior sales executives (sales head) with their marketing and financial (CFO) counterparts and finally approved by top management (CEO) Budgets should be reviewed definitely on a quarterly basis and preferably on monthly basis Changes should be minimal but incorporated into revised budgets after approval by top management

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Time and Territory Management for Managers:

Time and Territory Management for Managers



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