Introduction To Sales Management
Introduction To Sales Management
Introduction To Sales Management
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Contents
Introduction to Sales Management Evolution of Sales Management The Nature and Role of Sales Management The Marketing Concept Relationship between Sales & Marketing Sales Management Process
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Robert Louis Balfour Stevenson (13 November 1850 3 December 1894) was a Scottish novelist, poet, essayist and travel writer. His most well known books
include Treasure Island and Kidnapped.
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The first salespeople in the US were the Yankee peddlers who carried clothing, spices and household articles from one part of the country to another part. In India, they are called 'pheriwallahs'. These move village to village and sell sarees, dress materials, and spices mostly in the rural markets of India, because rural housewives have lesser mobility than urban housewives.
These salespeople move from the manufacturing bases of the country to different consumption centers in India.
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The techniques of modern sales management and selling techniques were refined by John Henry Patterson, widely known as the father of modern sales management. Thomas J. Watson was trained by Mr. Patterson who later founded the IBM. Patterson was the pathfinder who showed the strategy and skill required to transform a sales force into an effective workforce for generating sales and profits.
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Evolution of Sales Management Before you try to convince anyone else, be sure you are convinced, and if you cannot convince yourself, drop the subject.
John Henry
Patterson
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Today, the process of sales management has undergone numerous changes in terms of strategy, practice, and technological adaptation to achieve the desire sales goal.
A sales manager have to perform duties such as recruiting, selecting, motivating, forecasting, controlling and administrating salespeople, while performing the primary responsibility of revenue generation for the firms.
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Today's selling approach, also highlights maintaining good customer relationship, managing customer complaints and building brand value in the eyes of the customer. The reason behind growing importance of salesperson is that he is one of the most vital contact points with the customers. Other contact points can be ATMs, Internet Functions of a sales manager can be classified into two: personal selling & sales management.
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The Production Concept The Product Concept The Selling Concept The Marketing Concept The Holistic Marketing Concept
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It holds that consumers will prefer products that are widely available and inexpensive. Focus on achieving high production efficiency, low costs and mass distribution. Focus on Economies of scale
In microeconomics, EOS are the cost advantages that a business obtains due to expansion. They are factors that cause a producers average cost per unit to fall as scale is increased.
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The product concept holds that consumers will favor those products that offer the most quality, performance or innovative features.
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Selling concept holds that consumers, if left alone, will not buy enough of the organizations product. The organization must, therefore, undertake an aggressive selling and promotion effort.
Selling concept is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as insurance, and encyclopedias.
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Most firms practice the selling concept when they have overcapacity. The aim is to sell what they make rather than make what the market/customer wants.
Selling focuses on the needs of the seller; marketing on the needs of the buyer.
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The marketing concept emerged in the mid-1950s. Instead of a product-centered,' make-and-sell philosophy, business shifted to a customercentered,' sense-and-respond philosophy. Instead of hunting, marketing is gardening. The job is not to find the right customers for your products, but the right products for your customers.
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The most advance concept of marketing. Holistic marketing concept is based on the development, design and implementation of marketing programs, process, and activities that recognizes their breadth and interdependencies.
Holistic marketing recognizes that everything matters with marketing and a broad, integrated perspective is often necessary. The four components of holistic marketing are
1. 2. 3. 4. Relationship marketing Integrated marketing Internal Marketing Social Responsibility Marketing
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Internal Marketing
Integrated Marketing
Holistic Marketing
Social Responsible Marketing Relationship Marketing
Ethics/ Legal
Environment Community
Customers
Channels
Partners
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Offering mix
Product Company Price Services
Sales Promotion
Direct Marketing
Events Public Relation Personal selling
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Distribution channels
Target Customers
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Internal marketing is the task of hiring, training, & motivating able employees who want to serve customers well. It makes no sense to promise excellent service before the companys staff is ready to provide it. Internal marketing must take place at two levels.
1. At one level, the various marketing functions-sales force, advertising, customer service, product management, marketing research-must work together. 2. At another level, marketing must embraced by other department; they must also" think customer". Marketing is not a department so much as a company orientation.
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Social responsibility also requires that marketers carefully consider the role that they are playing and could play in terms of social welfare.
The societal marketing concept calls upon marketers to build social ,ethical, environmental & legal considerations into their marketing practices.
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The Fast-food hamburger industry offers tasty but unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.
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Focus
Factory
Means
Selling and promoting
Ends
Profits though sales volume
Selling concept
Market
Customer needs
Coordinated marketing
Market concept
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3. The third decision is the organization of the sales force to call and manage various types of customers as effectively and efficiently as possible. This is related to the design of sales organization suitable to the market. 4. The fourth decision is related to the level of performance each member of sales force is expected to attain during the planning period under consideration. This involves decisions related to forecasts, quotas and budget-setting. 5. The fifth decision is related to the deployment of the firms sales force in the light of the account management policy and demand forecasts. The decision involves deciding on the sales territories and allocation of these territories to the salespeople.
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Customer orientation
Relationship selling
Diversity
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