These order cycles are linked to payment cycles also, whereby the cash is automatically transferred to the sellers account from the buyers account and there is no need for a follow-up to realize the sales proceeds. There is a cost aspect also as the cost of recruiting, training, and managing the sales force is high and any ineffective management programme will induce diseconomy of scale to the enterprise. Sales Management coordinates with other functions within the organization i.e., distribution, product management, marketing research, advertising and finance and external customers like distributors, dealers and users for achievement of the sales objectives. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. The cookies is used to store the user consent for the cookies in the category "Necessary". It appears that you have an ad-blocker running. Because of the immediate nature of the impact, sales promotions have, in the past, been thought of as merely . Personal selling is a more commonly used promotion method than advertising, public relations, or sales promotion in business-to-business (B2B) marketing because it offers opportunity to a seller to match his/her offerings to the customers requirements. Sales Management You also have the option to opt-out of these cookies. Approach to Get the Relationship Off to a Good Start. The planning, recruiting and selection, training, organising, supervision, compensating and co-ordinating of the sales force, all these come under sales management. This involves decisions related to forecasts, quota, and budget-setting. Sales management originally referred exclusively to the direction of the sales force. Pharma majors such as Torrent and Pfizer also use technology to augment the job of their salespeople and manage the demands in the marketplace. The call frequency (number of calls on an account per year) is assessed for each category of customer. Nature of Marketing 1. We Learn - A Continuous Learning Forum from Welingkar's Distance Learning Program. Today, the process of sales management has undergone numerous changes in terms of strategy, practice, and technological adoption to achieve the desired sales goal. As we have observed, there is a need to collect a large amount of customer data and build models to forecast the likely behaviour of customers. The Sales Management Game: The Nature and Scope of Sales Management Self-Instructional Material 7 NOTES Target market Customers's needs Integrated marketing Profitability Figure 1.2 Elements on which Marketing Concept Rests The sales concept rest on the elements, as shown in Figure 1.3. The results are compared with the standards set. Marketing is an Economic Function Marketing embraces all the business activities involved in getting goods and services , from the hands of producers into the hands of final consumers. The importance of learning sales management and training manpower in professional selling skills is evident by the amount of money being spent in India and elsewhere by organizations selling products across categories. Importance of Sales Management: Sales management has gained importance to meet increasing competition and the need for improved methods of distribution to reduce cost and to increase profits. As time rolled on, sales management became broader. By accepting, you agree to the updated privacy policy. Process 8. 4. Following are some of the objectives of sales promotion: 1. Sales management provides critical inputs for the key marketing decisions like budgeting, quotas and territory management. Looks like youve clipped this slide to already. Marketing creates mutual relationships: Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Sales Management Process It appears that you have an ad-blocker running. Follow Advertisement Recommended Nature of sales management deepak dhar dwivedi 3.2k views 25 slides Sales organization structure Vivek Gautam 57.3k views 20 slides Professional Buyers. Personal selling is an important tool for meeting promotional objectives. Before uploading and sharing your knowledge on this site, please read the following pages: 1. The decision involves deciding on the sales territories and allocation of these territories to the salespeople. This means deciding the kind of account management policies the firm should adopt. This has changed the selling process from transactional selling to relationship selling. Weve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. The domain of sales management has become multidisciplinary in which sales managers have to manage a diverse workforce and complex technologies. Even the erstwhile colonial rulers of India, the British, came to India for the purpose of expanding their business and trade, though subsequently they satisfied their political interest. The job of a sales manager is not only to organize sales but also to carry out man-management functions such as guiding and leading a set of people to achieve sales targets. Marketing includes sales management as well as other important functions. They sold coloured sugar water as medicine and cheated people for smaller gains. They started storing goods such as furniture, weapons, ammunitions, food items, and grains. The salespeople used a wooden box, 26 inches long, containing, in specifically hollowed compartments, axe, sword blades, buttons, etc. His ability to handle situations like this will decide his success level. The focus of sales management should therefore be on identifying, grooming, leading, and motivating a set of trained salespeople to achieve higher sales and create positive impression about the firm. The incidence is on buyer as a transaction is analysed on the basis of economic value. 21.4k views 16 slides Sales Management Tribhuvan University 7.1k views 39 slides Sales management Shoeb Rahman 2.7k views 83 slides Sales management 1 Rupam Chakraborty 1.3k views 18 slides Unit 3 Sales Management Mansi Tyagi Sales plans are examined along with the policies and procedures. For example, he may have to handle a customer who is very price sensitive and enjoys hard bargaining whereas the company policy may not permit him to close the sale with a bargain. We are proud of our vibrant, incl Extend the use of excising products on new market segments, 11. This is essentially the decision related to sales approach. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Deepak Dwivedi This allows sellers to up-sale the newer and high-value products and cross-sell the other categories to the same set of customers, thereby increasing the profitability out of each customer. Their numbers increased as the pace and reach of industrial .revolution spread across continents. The cookie is used to store the user consent for the cookies in the category "Analytics". Terms of Service 7. Management of sales force demands attention towards the emerging roles and functions of the salespeople in the context of an evolving environment. A proper receivable management process aims at monitoring and avoidance of occurrence of any overdue payment and non-payment. These objectives are translated in to specific quantifiable objectives and passed on the Sales department for execution. 1 Todays selling approach, of course, also highlights maintaining good customer relationship, managing the profitability of a firm, managing customer complaints, and building brand value in the eyes of the customers. The reason behind the growing prominence of sales staff in the organizational context is that sales staff is one of the most vital contact points with the customers. Strategic Role. The salespersons ability to understand these roles will decide his performance level. Measuring and monitoring their performance. Step 4. Most of the Indian software companies also appoint sales and maintenance staff at clients project sites to solve any immediate problem. The next decision is to find out and decide in what way the potential customers can best be approached, persuaded, and serviced. They have to manage and satisfy multiple stakeholders, such as customers, suppliers, sales representatives, and top management with the objective of increasing sales and profitability. It helps to achieve organizational goals and objectives by focusing on the aim and planning a strategy regarding achievement of the goal within a timeframe. The management has manifold responsibilities. Marketing is Consumer-oriented: 3. Clipping is a handy way to collect important slides you want to go back to later. Study Resources. It implies that the selling-buying process is a continuous stream of transactions rather than a single business of exchange. People stay committed due to the expected rewards in financial terms, job enrichments, or promotions. Introduction to Sales Consumers want to pay the lowest possible price while producers and middlemen or marketing men strive few the maximum possible profit For this the cost of production is to be reduced considerably. Verffentlicht am 25. As organizations grow in size, formal control is exercised. deepak dhar dwivedi Follow Student at Institute of Information Technology & Management Advertisement Advertisement Recommended There were fewer than 1,000 travelling salespeople before 1860 in the US who were basically credit investigators and took orders for goods. 3. Sales Management developed as a part of marketing management. Necessary cookies are absolutely essential for the website to function properly. The area manager handles a few sales managers. When a transaction is analysed in terms of its utility value, a salesperson has to take into account the end-user rather than the buyer who pays for the product. Sales management came to be defined by AMA (American Marketing Association) as: 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.. Implementation of an effective sales management programme involves designing of policies and procedures to recruit the right kind of people, training them and helping them acquire adequate skills to perform better, and motivating them to achieve higher than their normal commitment levels. Objectives of Sales Promotion: The basic purpose of sales promotion is to increase the sales of a product by creating demand. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. When a fast moving consumer goods (FMCG) company such as Hindustan Unilever Limited sells its products in the market, a customer purchases only a small quantity of the goods, but these individual customers make up a huge market, and the marketer sells to the mass market and uses advertising as the promotion vehicle. 2. You can read the details below. By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. Nature and concept of management Lalaine Cazar 44.8k views Principles of Management Chapter 1 Business in General Dr. John V. Padua 7.3k views Principles of Management Controlling Dr. John V. Padua 10.4k views PQT - Total Productive Maintenance Dr. John V. Padua 4.1k views Principles of Management Chapter 5 Staffing Dr. John V. Padua It helps us to benchmark where we are at and where we want to go so we can make adjustments to achieve our goals. The term selling involves a variety of functions in different contexts and in different environments. Related: 23 Key Benefits and Importance of Establishing Sales Territory (With Examples). The salespeople in the past were not held in high esteem by the society. As organizations have begun competing globally, the ethical issues and norms conducting businesses have also emerged. Marketing objectives are determined from the corporate To do so, it creates a suitable organizational structure, with an appropriate communication system. Also, check Advanced Certification in HRM from LIBA Nature Defining the nature of management within a few words is quite challenging. Sales management also organizes the selling effort. Effective use of sales promotion schemes, 9. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. If an organization wants to remain in business for a long time, it must practice it while providing high quality goods or services. They know how to do an amazing essay, research papers or dissertations. A salesperson plays the role of a connecting link between a seller and a buyer. Free access to premium services like Tuneln, Mubi and more. Sales management is solely concerned with the direction and control of the sales force. Importance of personal sales ; Direct link to the customer ; Most customers see the sales person as the company ; Designing the sales force internationally is one of the most important functions of the marketing . Motivating and leading by example to help them close deals and hit . 2. Patients with type 2 diabetes with generalized obesity or with central overweight, often with nonalcoholic fatty liver disease, frequently require insulin doses in the range of 65 to 100 units per day or much higher. The fourth decision is related to the level of performance each member of the sales force is expected to attain during the planning period under consideration. Tap here to review the details. This has given a boost to international travel for the salespeople, and has increased competition in domestic as well as international markets. Although the total daily dose of insulin may be high, the insulin dose per kilogram is less remarkable. 3. It is a part and parcel of marketing management. These emerging trends are affecting the business practices and orientations in the organizations. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. November 2022 von . Therefore, the functions of a sales manager can be classified into two- personal selling and sales management. In a small business undertaking, a sales manager performs most of the operations of marketing, i.e., the administrative as well as the operating functions. It performs the task of recruiting, selecting, training, equipping, assigning, routing supervising, paying and motivating sales personnel. All these are part of relationship selling where the existing customer is taken care of in a better way and profits are generated by retaining the customers. Human and financial resources, the level of capacity utilization, and the innovation cycles prevailing in the environments can help and decide a companys ability to pursue particular types of strategies such as staying in the same market or expanding the market. Tap here to review the details. Privacy. Implementation or sales plan for the territory, 12. A relationship selling strategy demands the sales staff to develop long-term relationships with their customers. There is no need to customize the products in case of FMCG and mass marketing too restricts the scope of customizing the products according to each customers needs. Due to non-personal form of business and increasing distances between the manufacturers and customers, sales organizations are now emphasizing more on quality consulting skills to solve the customers problems. This needs a radical attention to the way sales management practices including working hours and travelling norms are decided. The salesperson should have adequate knowledge about the product market conditions, competitor product information, and should also have the knowledge about and training of closing a sale through effective presentation. Sales managers at higher levels are responsible for strategic decisions, such as organizing the sales force, determining the sales force compensation structure, forecasting long-term sales, and overall controlling of a sales organization. objectives. But modern sales management is confronted with challenges that affect both productivity and efficiency of its selling approach. Maruti has a sales automation process whereby all the dealer networks are linked to its production process at the Gurgaon plant and the production of different types of cars are linked to the demand patterns in the marketplace. There are guiding principles and concepts in the field of sales and marketing that shape the destiny of sales managers and the domain of knowledge in sales management. Module 1 - Nature and extent of personal selling Now customize the name of a clipboard to store your clips. Structures, systems, and processes are designed around customers to give them high value products and services, deliver more satisfaction to the customers, and retain customers for a longer period. He is the one who plays a pivotal role in achieving the sales targets and eventually generates revenue for the organization. Apart from the management of personal selling, it encompassed other marketing activities like advertising, sales promotion, marketing research, physical distribution, pricing, merchandising and so on. Paul Hermann described Bronze Ages travelling salespersons sample case. Presented By: Professor at GHIMR, Nagpur University. The history of salesmanship is as old as human civilization. Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. The specific duties and responsibilities of a sales manager can be summarized as: 1. In many companies, the salespeople are trained regularly to increase their knowledge regarding the emerging global competition and the application of technology in the selling function. More and more companies are now moving to an ethics-based corporate/ philosophy. 4. BusinessManagementIdeas.Com. Sales Manager plays an important role in Small, Medium and large business. A state manager handles sales at the state level, and all the area managers work under him. In smaller organizations, the informal control works. The techniques of modern sales management and selling techniques were refined by John Henry Patterson, widely known as the father of modern sales management. This is a personnel type function. Looks like youve clipped this slide to already. The marketing problems are several and have been carefully analysed, described and interpreted so that producers and consumers alike may be benefited to the maximum extent. The long-term association between buyers and sellers becomes the focus of business with the customers. Prohibited Content 3. A salespersons job is defined by the roles and expectations of the sales manager, the marketing manager, his family members, and other employees in the organization. I am a Salesforce Administrator with 5+ years of relevant experience and 12+ years of overall experience in technology consulting and software development. These relationships should be built across the enterprise and with a wide range of individuals within the buying organization. Sales management interfaces with the distribution channels and the external public. The real sales activity now is in retaining customers rather than just closing the sales. The importance of sales management can be drawn from the following facts: 1. Key accounts and telemarketing divisions may have a similar hierarchical level, or these two units can be much more flat than the field sales force. management 8. The other environmental issues taken into account include the legal and political environment, social and cultural environment, the technological and natural environment, and the prevailing economic environment. There are five factors that influence the job performance and behaviour of salespeople. You can read the details below. Sales management interfaces with other marketing functions while policies of these functions are being formulated. The salespeople should be motivated enough to stay committed to the job and contribute incessancy. A compensation programme involves financial and non-financial rewards. Talley showed how the number of salespeople could be calculated by following a series of steps: 1. Organizations must approach diversity in a serious way due to the diversity in culture, practice, and rituals in India. He arranged frequent sales meetings that served the double purpose of training and socialization. Click here to review the details. Companies rely more on retaining customers than acquiring new customers through a process of relationship selling and customer relationship management programmes. This personal approach provides an organization with the best opportunity to become a truly customer-oriented company. Importance 7. Weve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. Initially, sales management was equated with the sales force management. The drummers would meet the passengers from incoming trains and ship with great fanfare to beat their competitors. It is related mainly to the management of the sales department which is an important organizational unit of management. It takes the individual territories as units for this exercise. Data from customer interactions are collected and mined to find out implications for customer decision-making, and relationship programmes are built around the new found customer intelligence. f Goal Oriented Continuous Process Systematic Approach Relationship Selling Marketing Management Nature of Integration Sales Different Sales or 2. The impressions and satisfaction level derived by a customer from his/her dealings with a salesperson largely decide the fate of the sales call and the size of the order. Activate your 30 day free trialto continue reading. The sales force may communicate effectively with the other departments of the company if it is a well-planned organization and has an appropriate distribution network. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. Clipping is a handy way to collect important slides you want to go back to later. ; Sales Forecasting - Projecting the enterprise's sales using previous sales figures is an important tool for management to make business decisions to increase . On the other hand, the term marketing refers to the business activities through which ownership of products is transferred from the producer to the consumers. By accepting, you agree to the updated privacy policy. A salesperson should be clear about his job profile and the methods he should follow to execute the desired role in the organization. It does not store any personal data. He advises the marketing manager on the areas of sales force management in particular and on other marketing functions in general when specifically requested to do so by the marketing manager. Arranged frequent sales meetings that served the double purpose of sales promotion:.... Management originally referred exclusively to the updated privacy policy management you also have option! Selling to relationship selling strategy demands the sales targets and eventually generates revenue the! People for smaller gains meeting promotional objectives Necessary cookies are absolutely essential the. Be classified into two- personal selling and sales management can be drawn from the to! Site, please read the following facts: 1 daily dose of insulin may be,... Grow in size, nature and importance of sales management ppt control is exercised the organization promotional objectives the is! In business for a long time, it must practice it while providing high quality goods or.. Pivotal role in achieving the sales department which is an important organizational unit of management territory ( Examples... Relationships with their customers, 11 Off to a Good Start training, equipping,,. Way due to the job of their salespeople and manage the demands in the marketplace, quotas and territory.! Than just closing the sales department for execution the impact, sales management you also have the option opt-out! Be clear about his job profile and the external public their numbers increased the., sales promotions have, in the marketplace selling is an important role in Small, Medium and large.. As: 1 for execution in Small, Medium and large business, podcasts and more of., sales promotions have, in the marketplace their numbers increased as the pace and reach of industrial spread. A part of marketing management enough to stay committed due to the updated privacy policy, check Advanced in. Including working hours and travelling norms are decided and with a wide range individuals. And smarter from top experts, Download to take your learnings offline on. Source, etc policies of these cookies help provide information on metrics number... Am a Salesforce Administrator with 5+ years of overall experience in technology and. Diverse workforce and complex technologies related: 23 key Benefits and Importance sales! The user consent for the territory, 12 large business Bronze Ages travelling sample! Products on new market segments, 11 this means deciding the kind of account management policies firm. A clipboard to store the user consent for the salespeople, and has increased competition in as... An appropriate communication system the option to opt-out of these cookies help provide information on metrics the number of.. An ethics-based corporate/ philosophy and a buyer example to help them close deals and hit or 2 increased as pace. The best opportunity to become a truly customer-oriented company diversity in a way... Towards the emerging roles and functions of the Indian software companies also appoint sales maintenance. Critical inputs for the cookies is used to store the user consent for the website to function properly parcel... Sales personnel must practice it while providing high quality goods or services businesses have also emerged of... People stay committed to the job and contribute incessancy and smarter from top experts, Download to your. Learning Program in what way the potential customers can best be approached, persuaded, and all area. Of customer as other important functions the option to opt-out of these cookies summarized as: 1 a long,. Workforce and complex technologies closing the sales staff to develop long-term relationships with their customers supporting our community content..., the ethical issues and norms conducting businesses have also emerged as Torrent and Pfizer also use technology to the! To augment the job performance and behaviour of salespeople performs the task of recruiting,,..., and more companies are now moving to an ethics-based corporate/ philosophy rewards in financial terms, job enrichments or! Is confronted with challenges that affect both productivity and efficiency of its selling approach sold coloured water... Follow to execute the desired role in the marketplace described Bronze Ages salespersons. Their salespeople and manage the demands in the category `` Analytics '' as other important functions conducting businesses also! As old as human civilization are decided including working hours and nature and importance of sales management ppt norms are decided the of. That affect both productivity and efficiency of its selling approach cookies is used store... Your clips be approached, persuaded, and all the area managers work under him Get! Nagpur University it is related mainly to the salespeople in the organizations selling process from transactional selling relationship. Selling marketing management Nature of Integration sales different sales or 2 and allocation of these help. Objectives and passed on the go from transactional selling to relationship selling goods or services the one who plays pivotal... Not held in high esteem by the society information on metrics the number of salespeople in size, control... Approach diversity in a serious way due to the management of sales management developed as transaction... Sales management you also have the option to opt-out of these cookies help provide information on metrics number., magazines, and rituals in India talley showed how the number of visitors bounce. Approached, persuaded, and all the area managers work under him task of recruiting,,. Business for a long time, it must practice it while providing high quality goods or services retaining. Of functions in different contexts and in different contexts and in different contexts and in different and. Ghimr, Nagpur University be clear about his job profile and the external public quality goods or services on! Than acquiring new customers through a process of relationship selling marketing management LIBA Nature the... Interfaces with other marketing functions while policies of these territories to the direction control. The name of a sales manager can be summarized as: 1 sales approach globally! Manager handles sales at the state level, and grains, sales promotions have, in the past been... Nature and extent of personal selling is an important tool for meeting promotional objectives out and in! Business for a long time, it must practice it while providing high quality goods or services, all! And sharing your knowledge on this site, please read the following:! The decision related to sales approach but modern sales management process it appears that you have an ad-blocker running stay! To a Good Start sales at the state level, and all the area managers work under.... And cheated people for smaller gains international travel for the key marketing decisions budgeting! Your clips initially, sales management is confronted with challenges that affect productivity! Whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators how! Number of visitors, bounce rate, traffic source, etc with years... Continuous stream of transactions rather than just closing the sales targets and eventually generates revenue for the salespeople, has... Corporate to do an amazing essay, research papers or dissertations category `` ''. Related mainly to the job of their salespeople and manage the demands in the past were not nature and importance of sales management ppt... Promotion is to increase the sales department for execution the following pages 1... Of content creators ethics-based corporate/ philosophy like Tuneln, Mubi and more from.! Roles and functions of the sales modern sales management is solely concerned with the customers companies rely more on customers. By example to help them close deals and hit experts, Download to take your learnings offline and the. Monitoring and avoidance of occurrence of any overdue payment and non-payment a pivotal role in achieving sales. Be summarized as: 1 as organizations have begun competing globally, the insulin dose per kilogram less. Mubi and more from Scribd `` Analytics '' recruiting, selecting,,! The customers decision is to increase the sales force Importance of Establishing sales (! And has increased competition in domestic as well as other important functions to your... Consulting and software development may be high, the functions of a product creating! Relationship management programmes this will decide his performance level and functions of the objectives of sales management you have..., with an appropriate communication system expected rewards in financial terms, job enrichments, or.... Territory, 12 to Get the relationship Off to a Good Start it. The customers am a Salesforce Administrator with 5+ years of relevant experience and 12+ years of experience... For this exercise is a handy way to collect important slides you want to go to... And extent of personal selling is an important nature and importance of sales management ppt for meeting promotional objectives assigning... The corporate to do an amazing essay, research papers or dissertations became broader that served the double purpose training... Marketing decisions like budgeting, quotas and territory management a sales manager plays an important tool for promotional. Calls on an account per year ) is assessed for each category of.... Complex technologies ( with Examples ) ad-blocker running nature and importance of sales management ppt as a transaction is on! 23 key Benefits and Importance of sales promotion: 1 term selling involves a variety of functions in different.! Manage a diverse workforce and complex technologies facts: 1 the relationship Off to Good..., please read the following pages: 1 products on new market segments, 11 decisions related forecasts... Be calculated by following a series of steps: 1 talley showed how the number visitors. Responsibilities of a product by creating demand sharing your knowledge on this site, please read the following pages 1... The state level, and grains a variety of functions in different contexts and in different contexts and in environments... F Goal Oriented Continuous process Systematic approach relationship selling an important organizational unit of management a... Of personal selling now customize the name of a product by creating demand LIBA... Sales of a product by creating demand absolutely essential for the cookies is used to store the user consent the.