1. Introduction to sales management

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Chapter 1: 

Chapter 1 Introduction to sales management

PowerPoint Presentation: 

Prof. Sunitha Ratnakaram, Associate Professor, VVSB MBA, M. Phil, MFM, M. SC. (Psychology), UGC – JRF , (Ph. D)

In this chapter we will discuss:: 

In this chapter we will discuss: Evolution of the sales concept Nature and role of selling Image of selling Objectives of sales management Integrating sales and marketing management Environmental changes affecting sales management Entry of women in sales management

PowerPoint Presentation: 

“You can take away my money and take away my factories, but leave me my sales staff and I’ll be back where I was in two years.” - Andrew Carnegie

Introduction : 

Introduction Sale Selling Motivation to sales people Need for coordination with other departments Critical among others as it closes sales Requirement of effective sales man

Definition : 

Definition 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 sales force - AMA

Evolution of the sales concept: 

Evolution of the sales concept Stone age: offering gifts while passing through other group’s territory is the first incidence of trade Demand & supply emerged Around 10000 BC cultivation started which necessitated large scale selling & travel across the territories No currency (jewels & valuable metals) Intermediaries

Continued : 

Continued Invention of iron  ship building  trade across the seas Chief trader & sales persons Payment on daily basis / commission basis In 670 BC, government backed coinage was issued which facilitated foreign trade Competition started Book – keeping Door – to – door selling

Continued : 

Continued Plague in northern Europe made the market mute Florence, Venice, Rome gave boost to trade & commerce Trade fairs Sales person stared playing different roles auctioneer, lecturer, trader & entertainer Building long term relationships has been concentrated Industrial revolution Mass production No. of show rooms & sales offices Railways, postal system, internet

Generations in sales evolution: 

Generations in sales evolution I generation: barter II generation: store concept III generation: searching & locating customers instead of waiting for them to come IV generation: realized that certain customers buy repetitively & regularly V generation: need based selling VI generation: consultative selling from 60’s VII generation: role of moderator

Nature and role of selling: 

Nature and role of selling Enhancing knowledge about both the internal & external environments Developing positive relationships Sell the products profitably Identify potential prospects, qualify & building relations Exchange of information is needed Continuous monitoring of environment helps management in setting objectives

Image of selling: 

Image of selling Exercise: write words about “sales man” 1930 – survey on 3000 college students Results: travel , money, personality, sales, fast talker, commission, appearance, products, high pressure & aggressive It is the crucial activity which influences the profits or losses made by a company, still sales as a career option is viewed in a negative light

Continued : 

Continued 1962 – survey on 1000 students Results: sales can be taken just as a job but not profession Salesman – dishonest, deceitful, arrogant and ready to compromise on his principles All the above are misconception about the field of sales

Objectives of sales management: 

Objectives of sales management Sales volume – quotas, targets, incentives Contributing to profits Contributing to growth

Integrating sales and marketing management: 

Integrating sales and marketing management Lack of coordination Both have the same perception that their job is the important one & contributing to the organization Both work as separate departments with different & some time conflicting goals Quick fix solutions cannot be arrived at Long term healthy relationship building can be done

Continued : 

Continued Methods which require effective coordination are being designed VPs of both departments will attend the internal meetings of the other department to coordinate activities Employees of both the departments will get the information about the developments in the other department

Environmental changes affecting sales management: 

Environmental changes affecting sales management Shorter PLC Longer, more complex sales cycle Reduced customer loyalty Intense competition among manufacturing companies Rising customer expectations Increasing buyer expertise Electronic revolution in communication Computerized sales offices, teleconferencing, cellular communication, lap tops etc.

Entry of women in sales management: 

Entry of women in sales management No longer discrimination between genders Dealing with individual as well industrial customers Recruitment by MNC’s Recruited from non industrial jobs and promoted to managerial positions 26% of US sales people are women