Sales- Management- Reviewer PDF

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SALES MANAGEMENTIntroduction: A thriving business needs competent sales management to meet revenue and sales goals. Also, sales managers must ensure that the sales team is appropriately supported. Sales management is an important role in an organization. The sales manager handles many responsibiliti...

Description

SALES MANAGEMENT Introduction: A thriving business needs competent sales management to meet revenue and sales goals. Also, sales managers must ensure that the sales team is appropriately supported. Sales management is an important role in an organization. The sales manager handles many responsibilities, from hiring and managing sales staff to ensuring that sales projections are met. Read the concepts in this lesson to know more about sales management. WHAT IS SALES MANAGEMENT? Definition Committee of the American Marketing Association Sales management - is defined 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”.

Sales force should be hardworking, resultoriented, well-educated and competent to handle changing situations. Technical developments that are taking place at a rapid speed have made the task of sales force more challenging. Nature and Management

Importance

of

Sales

Sales management helps to achieve the organizational objectives. The main objectives of the sales management is that products should be sold at that price which realizes profits. Buyer and sellers both have same types of business relationships. This relationship is based on exchange of good, services and money. Sales person develops a positive relationship with the customers. The role of sales team is interdependent and success of one team member depends on the other.

Rachman and Romano - Sales Management includes recruiting, selecting, training, supervising, motivating and evaluating the sales-force”

The sales team continuously monitor the customer preference, competitors’ situation government policy and other regulatory bodies.

Hampton and Zabin - Sales Management is primarily the direction of men with all the management functions, of organization, control, recruitment, training, supervision and motivation.

Characteristics of Sales Management

Han- R. Tosdal - Sales Management is the part of the management in which the aim of an organization is to make provision for the sale of the produced commodities B. R. Canfield - “Sales Management involves the direction and control of salesmen, sales planning, budgeting, policy making, coordination of marketing research, advertising, sales promotion and merchandising - Integration in the marketing programme of all business activities that continue to the increase of sales and price Sales force is responsible for the sale of products of a company and to add profit to the business operations and fulfill social obligations.

1. Key Function — Sales management is a key function in many kinds of enterprises. Manufacturing and wholesaling enterprises encounter a wide range of sales problems. Still and Cundiff state, "Sales management problems exist even in companies not employing sales personnel." 2. Responsible — It is responsible to an important part of marketing functions. It is also responsible for the effective functioning of personal selling activities. Sales managers have still other responsibilities. They are responsible for participating in the preparation of information critical to the making of key marketing decisions, such as those on budgeting, quotas, and territories.

3. Role — Sales managers participate in decisions on products, marketing channels and distribution policies, advertising and other promotion, and

pricing. Still and Cundiff said, "The sales manager is both an administrator in charge of personal selling activities and a member of the executive group that makes marketing decisions of all types." 4. Strategic Function—Sales management achieves personal-selling objectives through 'personal-selling strategy.'

5. Development of Human Resources - According to Boone and Kurtz, "Sales management effort may be exerted in the direction of securing, maintaining, motivating, supervising, evaluating and controlling an effective field sales force." Thus, the modern concept of sales management revolves around the development of human resources.

principles of general management such as planning, organizing, direction, motivation, and control applied sales activities and sales-force for securing better business performance, viz., reasonable profits through sales. 10. Challenging Profession Sales management is a challenging profession. k n responsible for obtaining sales volume, handling sales operations so as to make contributions to profits, and for ensuring continuous growth. Sales executives inure the delivery of products with customer satisfaction 11. Goal - The objectives of sales management include achieving sales results giving major contributions to profits, and experiencing continuous growth. SALES MANAGEMENT FUNCTIONS

6. Specialized Function - Sales management is a significant branch of general management. It is one of the highly specialized functions of general management. A salesman must be an expert in his job. Hence, sales management is a field of specialized knowledge. 7. Consumer Welfare - The scope of sales management is not confined not only to self-centered corporate goals of profit and sales maximization and sustained growth. It goes well beyond these towards consumer welfare, satisfaction, delight and maximum social advantage by making available the goods and services to the needy consumers in the right time and at reasonable prices, at the place wanted. 8. Customer-oriented Sales management is expected to be customer-oriented. It produces what is needed by the customers in the quest of maximum social welfare. 'Customer delight' is the fundamental guiding principle of sales management. 9. Functional Area - Sales management represents one of the most important functional areas of management. It also represents all the

Sales management is the attainment of sales force goals in an effective and efficient manner through: Planning - The conscious, system process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them. Staffing - Activities undertaken to attract, develop, and maintain effective sales personnel within an organization. Training - The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitude that result in improved performance in the selling environment.

Leading - The ability to influence other people toward the attainment of objectives. Controlling - Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary. SALES MANAGEMENT OBJECTIVES

- Communicating and coordinating with other marketing executives and reporting to some superior executives such as vice presidentmarketing.

Planning Functions

1. Sales Volume - Through efficient sales management, the organization wishes to increase the number of units sold. This will ensure that the production facilities do not remain idle and are utilized to the fullest.

- setting personal selling goal

2. Contribution to Profits - Sales management has the objective of improving the profits of the organization through effective planning, coordination, and control. Sales management strives to increase sales and reducing costs, this ensures good profits for the organization.

- controlling sales activities like sales volume, selling expenses

- formulating sales policies and personal selling strategies - designing the sales programmes

QUALITIES OF SALES EXECUTIVES:

4. Market Leadership – With increased sales volumes and profits, ‘sales management’ enables an organization to become the market leader.

1. Ability to define the position's exact functions and duties in relation to the goals to a company should expect to attain. 2. Ability to select and train capable subordinates and willingness to delegate sufficient authority to enable them to carry out assigned tasks with minimum supervision. 3. Ability to utilize time efficiently. 4. Ability to allocate sufficient time for thinking and planning. 5. Ability to exercise skilled leadership.

5. Converting Prospects to Customers – Getting prospects to become customers is an art and a science, it requires good planning and sustained efforts. This is accomplished through sales management.

Salesmanship - It is the art of successfully persuading prospects or customers to buy product or services from which they can derive suitable benefits thereby increasing their total satisfactions.

3. Continuing Growth - With sustained and continuous sales management techniques, the organization tends to gain market share and results in the growth of the organization.

Sales executive function & qualities Functions of sales executive: Operating Functions - Sales force management - handling relationship with company as well as marketing channels

Personal Selling - Personal selling refers to personal communication with an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicator’s organization as being the source of the message. Differences between Salesmanship and Personal Selling Salesmanship Personal Selling - Narrow Concept - Personal selling is

- This involves only meant for implementing and effective sales coaching, often from sales managers who make it a point to help their selling of the product or marketing programs. - Broader Concept service team members succeed. To be successful as a - Salesmanship skills sales manager, evaluate each member of your are used in personal team as an individual and determine how coaching can help them grow as a selling salesperson. - It’s persuading activity

SALES MANAGEMENT SKILLS 1. Conceptual and Decision Skills - Refer to the cognitive ability to see the organization as a whole and the relationships among its parts. 2. People Skill - Involve the ability to work with and through other people and to work effectively as a group member. 3. Technical Skills - The ability to perform a specialized task that involves a certain method or process. SALES MANAGER SKILLS Hire and retain the right sales team - Good to Great author Jim Collins wrote, “The most important decisions that business people make are not what decisions, but who decisions." For sales managers, recruiting may well be the most important thing you do. And yet, since most sales managers don't hire on a daily or weekly basis, it can be challenging to create an effective sales hiring process.

Focus on performance management - As a sales manager, performance management is at the heart of your job. Sales managers are responsible for supporting their salespeople with goals, coaching, and resources while maintaining an authentic interest in their personal growth. Performance management is what makes this growth happen.

Learn how to coach effectively - Effective salespeople aren't born. They’re created through experience, intensive training,

Know the numbers - As a sales manager, numbers will be your new best friend. Which numbers? Analytics on how the business is performing. This data will illuminate areas that need extra sales attention so you can pass down advice to reps.

Rethink your approach to leadership - Some managers confuse leadership with power. Being an effective sales team leader means understanding your true role as a leader. Sometimes a leader isn’t the loudest person in the room. Sometimes being a leader means listening, or pitching in on some not-soglamorous duties if a team member is unexpectedly away. THE SALES ORGANIZATION Effective sales executives insist upon the sound organization. They recognize that the sales organization must achieve both qualitative and quantitative personal selling objectives. Over the long haul, it must achieve qualitative objectives concerning personal selling’s expected contributions to achievement of overall company objectives. In the short run, it must attain the quantitative personal – selling objectives not only sales volume but other objectives related to “profit”(such as keeping selling expenses within certain limits) and to “competitive position”(such as attaining given market shares). achieving short-run quantitative personal selling objectives precede the attainment of the longrun qualitative personal selling objectives. The effective sales executive looks upon the sales organization both with respect to “here and now” and to the “future.” But the sales organization effective sales executive builds

both sales-minded less and profit-mindedness into the sales organization. LESSON 2

Topic:

A.

Management's Social Responsibilities

B.

What Influences Ethical Behavior?

C. Management's Ethical Responsibilities D. Ethics in Dealing with Salespeople E.

Salespeople's Ethics in Dealing with Their Employers

F.

Managing Sales Ethics

1. Explain the Historical Perspective in Global Business 2. Recognize the Global Markets 3. Identify World Trade Routes and Communication Links

Introduction: Understanding the geography and history of a country can help a marketer have a better appreciation for many of the characteristics of its culture. A culture of people evolves in response to the environment which it confronts. The geography of a country, its topography, climate, physical position relative to other countries affect a culture’s evolution including its marketing and distribution systems. It is important for a marketer to understand that geography plays an important role in the economy of a country and its marketing system. Social, Ethical, and Legal Issues in Selling Management’s Social Responsibilities Social responsibility is management’s obligation to make choices and take actions that contribute to the welfare and interests of society as well as to those of the organization.

- Social responsibility is having a sense of duty to society and everything that is a part of it. In other words, “social responsibility” means managers are accountable to society at large, not just their shareholders. - Social responsibility is an important aspect of capitalism at large. Individuals and consumers place trust in businesses to “do the right thing”, and take a leadership role in making the world a better place. A world with more socially-responsible managers also leads to fewer government regulations, since regulations are almost always introduced as a reaction to businesses profiting at the loss of society around them. What does it involve and who does it involve? The business itself (through its mission and vision statements), those put in charge of running (the managers), and people that produce value for it (the rank-and-file employees) are expected to act socially responsible. This means they have to be virtuous in who they are and what they do; that is, think in the best interests of the public, act on those best interests, being able to face the consequences of those actions (if they ever arise), controlling negative behaviors that could lead to negative outcomes, and most importantly, being fair to yourself and those around you. Upper management such as the chief executive officers (CEO), the chief financial officer (CFO), the chief operating officer (COO), the chief technology officer (CTO), the chief marketing officer (CMO), the directors, the presidents, the senior vice presidents, the vice presidents, the sales managers, and many others are charged with being the role models, supporters, the enforcers, the implementers, and the delegators of social responsibility. In other words, social responsibility usually comes from the top, with the highest-level managers encouraging their subordinates to act with social responsibility. This is usually done through the company’s mission and vision statements, implementations of internal controls, and specific goals laid out in the business plan.

Besides the management, there are those who keep such people in line and making sure that they are accountable and responsible for everything that happens: you, me, the media, the government, regulatory agencies, critics, customers, investors, activists, and so forth. “Bad press” and “good press” are the biggest motivators for managers to act with social responsibility. If the public sentiment starts viewing a company negatively, its competitors will be very eager to start stealing business. Everyone is a stakeholder; including the owners (shareholders), employees, customers, suppliers, and society at large. The internal stakeholders are those inside the company, and the external stakeholders are everyone outside of the company. How should managers approach social responsibility? Management should make every effort to appear and become socially responsible in everything they are, what they do, and who they represent. This helps keep the company in high esteem with their customers, but also proactively avoids problems caused by new regulations (either by preventing their passage, to begin with, or already being prepared for them once they are enacted). Managers can be socially responsible by focusing on four key areas.

actually counts. Do not be afraid to try new things or consider different options to social responsibility because things will continue to change and it is something we all have to deal with as we approach the future. This means companies need to be willing to listen to new research and new concerns coming from outside the organization, even if those concerns might mean a fundamental change to their products or way of doing business.

Accommodating - Do whatever you can to be socially responsible by integrating it into your life, your career, and into your work, that way it will not be an extra burden to you because it would already be a part of you. By being more accommodating you will make it harder for critics to question your management ability or implicate you in crimes against social responsibility. - In other words, when valid concerns are raised, socially responsible managers need to actually do something about it. This does not mean changing the entire way an organization does business with every valid complaint, but it does mean managers address complaints coming from outside the organization while mapping the company’s path forward.

Constructive Being and becoming socially responsible is about working with people who are able to identify when something is socially responsible or irresponsible. Social responsibility is about listening and learning about the people and the environment from which it will apply. Being constructive means listening to complaints, coming from both inside and outside of the organization, and being willing to act on those complaints.

Open-minded The past is in the past, pay attention to the here and now, the moment in time where it

Proactive Take the necessary steps to make social responsibility happen and not wait around for others to follow through with it. Make sure that the structure of social responsibility is in place, but always follow up just to be sure that everyone is complying with it because even if one person diverges, detraction will soon follow.

Companies get the best press if they are proactive and address social issues before they are forced to do so by government regulation. For example, the Heinz brand

became nationally beloved after it became the first major food manufacturer to lobby in favor of the Pure Food and Drug Act, a major social issue that other manufacturers were fighting. Nobody will celebrate a brand if they simply follow the bare minimum responsibility that the law requires, but brands can build a loyal following by being ahead of the curve.