IMED Actual Lesson Plan-28 PDF

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Functions and duties of sales department...

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Actual Lesson Plan: 28 (Related to Pre-Lesson Plan: 28) Name of Teacher / Designation

: Pankaj Kumar /Assistant Professor

Subject Code / Subject

: IMED3001/ IMED

Course / Branch

: CSE

Topics : Functions and duties of sales department Duration : 01:00 Hours. Resources required handling the class: Visuals _______________________________________________________________ STEP 1: INTRODUCTION

Learning Objectives/Key Points After the session, the student should be able to: 

Understand the functions and duties of sales department.

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Understand how sales department ply a crucial role for the growth of the organization.

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Analyze the objectives of the sales department.

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Understand the concept of sales promotions & its importance.

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Analyze After Sales Service Techniques

STEP 2: ACQUISITION

Functions and duties of sales department Having a strong sales team is crucial to the success of a company because the sales department is responsible for making sales, growing your business and retaining existing customers. Ultimately, the most important function of your sales department is maintaining relationships with your customers. This personal touch is the key to happy, long-term client relationships, not to mention increased profitability.

The various functions of sales department are: 1. Market Research 2. Advertising 3. Sales 4. Sales Correspondence 5. Service 6. Packaging 7. Warehouse.

Function # 1. Market Research: It means study of market, which includes forecasting, intelligence and statistics. It is an important factor for the sale of products. Failure to do this accurately may lead to the production of more goods that the market can absorb. This may mean financial losses to the firm. It may also lead to under-production, the results of which are equally unpleasant.

In estimating sales for a future period, number of factors has to be considered, the most important of these are: (a) Secular Trends: Means due to increase of population, the demand of products may also increase in proportion. (b) Cyclical Changes: These are changes due to agricultural crops, wars, inventions, discoveries etc. (c) Seasonal Fluctuations: These are changes in the volume of sales due to climatic conditions or festive buying. There are many products like umbrellas, woolen wears, neckties etc. which have a seasonal demand while products like soap, tooth paste, blades etc. are free from such seasonal fluctuations. (d) Nature of Products: Products are classified as consumer goods and capital goods. Articles of food, toiletries, shoes, toys, papers, pencils come in the first category while machinery, machine tools etc. come in the second category. Consumer goods such as shoes are rapidly used and must be continually replaced. So there is more regular demand for them. But capital goods, such as lathe whose life is long enough, have more fluctuations in their demand than consumer goods. Hence in estimating future sales, a manufacturer must take into account the nature of his product and study how changing business conditions will affect the demand for his product, (e) Competition: This makes it necessary to study the recent or proposed production, sales and pricing policies of the competitors. Most important of these is the analysis of the quality of the competitor’s products to ascertain how a potential customer would compare with one’s product. The sales department should ask its salesmen to report and comment by a potential customer about the firm’s product or the products of its competitors. It should also study the research and product development work that the competitor may be carrying on in order to forecast as to how these will affect future sales. (f) Government Action:

Effect of large government buying, levy, excise duties, policy regarding taxation of personnel income, monetary policy of deficit finance etc.

Function # 2. Advertising for Sales: Advertising is the publication of information regarding articles (products) put up for sales and is a method to bring the producer into touch with customers. This informs the customers about the product and the place from where they can get it. Advertising promotes trade and creates demand and hence it is the pivot of modern trade, commerce and business. The most appealing definition of advertising is- “advertising bring to the greater number of people, actual knowledge concerning useful things, thus it is essentially a form of education of the people about the product.” Functions of Advertising: Following are the main important functions (or objects) of advertising: (i) Advertising is the powerful media of demand creation by reaching to the customers and telling them about good qualities of the product. (ii) To prepare ground for a new product by way of introducing its product to the public, (iii) It enhances the goodwill of the company among customers. (iv) Advertising helps the product to stand against its competitor products.

Function # 3. Sales: All the activities of the Sales department are for selling to earn maximum profit. For this purpose, continuous search is made for profitable markets. Various agencies are opened throughout the country and if possible, in foreign markets also. Sales Promotion: Sales promotion is a direct and immediate inducement that adds an extra value to the product so that it prompts the dealers, distributors or ultimate consumers to buy the product. Sales promotion activities are complementary to advertising and personal selling efforts. Objectives of Sales Promotions: Sales promotion objectives are: (i) For introducing new products

(ii) For unloading accumulated inventory. (iii) For overcoming a competitive situation. (iv) For overcoming seasonal slumps/decline, (v) As a support to the advertising effort.

Function # 4. Sales Correspondence: Any incoming letter must be replied in a short time. The letter should be tactful, simple in language, helpful and every customer must feel that his enquiries are being considered. Quotations for the supply of products should be sent to large number of customers and try to capture large markets. If the promises cannot be kept with regard to delivery date or other matters, the customers should be informed immediately and whenever practicable reasons for the delay should be given.

Function # 5. Service: Industry is rapidly adopting the principle that service is an essential part of the sales itself. Manufacturers often find it essential to see that their products are properly installed. This is not only a service to the customers but also a protection against complaints and general dissatisfaction of the customers. The manufacturers, therefore, maintain a staff of skilled engineers and mechanics, who carry out tests at the customer works, give technical help and advice and see that everything is functioning properly.

Function # 6. Packing: Packing to be used for products depends upon the type of product to be packed. Following are the few types of packing of industrial products: 1. Paper wrapper 2. Tin container. 3. Cloth packing

4. Card Board Packets 5. Plywood Boxes 6. Plastic packing’s and 7. Wooden packings. Packing also has an important role in the sale of product. With the help of good packing, the products can reach to the customer in same form and quality as they were before dispatch. Good packing also helps in advertising and attracts a greater number of customers.

Function # 7. Warehouse: These are the go-downs, for storing finished products after they are packed in a systematic manner. These are built in such a way that materials can be kept in them for a period till they are sold. For easy transportation, these are generally situated near the factory main gate.

Sales forecasting Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance. Companies can base their forecasts on past sales data, industry-wide comparisons, and economic trends. It is easier for established companies to predict future sales based on years of past business data. Newly founded companies have to base their forecasts on less-verified information, such as market research and competitive intelligence to forecast their future business. Sales forecasting gives insight into how a company should manage its workforce, cash flow, and resources. In addition to helping a company allocate its internal resources effectively, predictive sales data is important for businesses when looking to acquire investment capital.

Sales forecasting allows companies to:  Predict achievable sales revenue;  

Efficiently allocate resources; Plan for future growth.

Sales Promotion Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales. This strategy is usually brought to use in the following cases –

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to introduce new products,

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sell out existing inventories,

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attract more customers, and

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to lift sales temporarily.

American Marketing Association defines sales promotion as – Media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product availability.

Importance of Sales Promotion Sales promotion is a handy technique to fulfil the short-term sales goals by persuading potential customers to buy the product. It is an important promotional strategy to – 

Spread information about the brand to new customers or new market

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Stabilize sales volume and fulfil short-term sales goals

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Stimulate demand for a short term by making the product look like a great deal.

Objectives of Sales Promotion The answer to the question what is sales promotion? also gives a hint to sales promotion objectives, the main objective being lifting the sales temporarily. Other objectives include but are not limited to – To Create Market for New Products It is sometimes hard to establish demand for a new product in a market of similar products. In such cases, the company opt for increasing some sales by using sales promotion strategies like penetration pricing, offers, discounts, and scarcity principle. To Remain Competitive Companies use temporary sales promotion techniques to compete with competitor’s short term marketing strategies. To Gain Dealers Trust Sales promotion techniques increase the sales of the products. This increases dealers’ income and results in them preferring the brand more. To Take Products to New Markets New markets are often hard to enter. Sales promotion increases traction and makes more customers try the new product.

Increase Brand Awareness It includes attractive incentives which help increase brand awareness, which eventually leads to more sales.

After Sales Service / Customer Service Customers are the assets of every business. Sales professionals must try their level best to satisfy customers for them to come back again to their organization. What is After Sales Service? After sales service refers to various processes which make sure customers are satisfied with the products and services of the organization. The needs and demands of the customers must be fulfilled for them to spread a positive word of mouth. In the current scenario, positive word of mouth plays an important role in promoting brands and products. After sales service makes sure products and services meet or surpass the expectations of the customers. After sales service includes various activities to find out whether the customer is happy with the products or not? After sales service is a crucial aspect of sales management and must not be ignored. Why After Sales Service? After sales service plays an important role in customer satisfaction and customer retention. It generates loyal customers. Customers start believing in the brand and get associated with the organization for a longer duration. They speak good about the organization and its products. A satisfied and happy customer brings more individuals and eventually more revenues for the organization. After sales service plays a pivotal role in strengthening the bond between the organization and customers. After Sales Service Techniques   

Sales Professionals need to stay in touch with the customers even after the deal. Never ignore their calls. Call them once in a while to exchange pleasantries. Give them the necessary support. Help them install, maintain or operate a particular product. Sales professionals selling laptops must ensure windows are configured in the system and customers are able to use net without any difficulty. Similarly, organizations

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selling mobile sim cards must ensure the number is activated immediately once the customer submits his necessary documents. Any product found broken or in a damaged condition must be exchanged immediately by the sales professional. Don’t harass the customers. Listen to their grievances and make them feel comfortable. Create a section in your organization’s website where the customers can register their complaints. Every organization should have a toll-free number where the customers can call and discuss their queries. The customer service officers should take a prompt action on the customer’s queries. The problems must be resolved immediately. Take feedback of the products and services from the customers. Feedback helps the organization to know the customers better and incorporate the necessary changes for better customer satisfaction. Ask the customers to sign Annual Maintenance Contract (AMC) with your organization. AMC is an agreement signed between the organization and the customer where the organization promises to provide after sales services to the second party for a certain duration at nominal costs. The exchange policies must be transparent and in favor of the customer. The customer who comes for an exchange should be given the same treatment as was given to him when he came for the first time. Speak to him properly and suggest him the best alternative.

STEP 3: PRACTICE/TESTING Short Question: Q1. Explain the role of sales department to the success of a company. Q2. Define Sales forecasting. Q3. Explain the main elements of personal selling. Long Questions: Q1. In estimating sales for a future period, explain the most important factors that has to be considered. Q2. Interpret the functions and duties of sales department. Q3. Discuss in details the objectives of Sales Promotion

Multiple choice Questions Q1. A market survey is required for________ (a) Deciding marketing strategies (b) Deciding product strategies (c) Deciding pricing strategies (d) All of these Q2. Communicating information about products and services to potential customers is which marketing function? (a) Marketing Information Management

(b) Pricing (c) Financing (d) Promotion Q3. ______ provides fast and accurate marketing information. (a) Marketing Information System (b) Management Information System (c) Maintenance Information System (d) All of the above Q4. _____________________ is irregular in nature. (a) Promotion mix (b) Sales promotion (c) Discount coupon (d) Media planning Q5. The long-term sales effect of the sales promotion could be (a) Positive (b) Negative (c) Neutral (d) All of the above Q6. Successful marketing aims at______ (1) Increasing the sales volume (2) Increasing the profits (3) Increasing the output of the sales persons (4) All of these Q7. Market survey means_______ (1) Market research (2) Market plan (3) Marketing strategies (4) Market monitoring Q8. Marketing is the combined study of______ (1) Buyer’s behavior and consumer tasks (2) Product demand and product supply

(3) Brand building and publicity (4) Sales force abilities and customer responses (5) All of these Q9. Effective marketing helps in______ (1) Boosting the sales (2) Boosting the purchases (3) Boosting the demand and supply (4) All of these STEP 4: REFLECTION Summary: In this we discussed how sales department play a crucial role to the success of a company because the sales department is responsible for making sales, growing the business and retaining existing customers. We discussed main functions of the sales department Also we understand about sales promotion and analyze after sales service techniques

STEP 5: Reference books   

Industrial Engineering and Management by O. P. Khanna; Dhanpat Rai and Sons, Delhi. Industrial Organization and Management by Tara Chand; Nem Chand and Brothers; Roorkee. Industrial Organization and Engineering Economics by Banga and Sharma; Khanna Publishers, Delhi....