Sales Management – MAM- VI-semester

UNIT-1

Sales Management

Sales management is the process of developing a sales force, coordinating sales operations,
and implementing sales techniques that allow a business to consistently hit, and even surpass,
its sales targets.

Sales research

The process of gathering, analyzing and interpreting information about a market, about a
product or service to be offered for sale in that market, and about the past, present and
potential customers for the product or service; research into the characteristics, spending
habits, location and needs of your business's target market, the industry as a whole, and the
particular competitors you face

Sales forecasting

It is defined as 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.

Methods of sales forecasting

1. Jury of Executive Opinion. 2. Sales Force Opinion, 3. Test Marketing Result. 4.

Consumer’s Buying Plan, 5. Market Factor Analysis. 6. Expert Opinion, 7. Econometric
Model Building. 8. Past Sales (Historical Method), 9. Statistical Methods.
Sales planning

It is defined as a strategy that sets out sales targets and tactics for your business, and
identifies the steps you will take to meet your targets. A sales plan will help you: define a set
Sales Planning is a key function in the procedure of sales management process. Sales
planning is an effective method that involves sales forecasting, demand management, setting
profit-based sales targets, and the written execution steps of a sales plan. Sales Planning is the
process of organizing activities that are mandatory to achieve business goals. of sales targets
for your business. choose sales strategies that are suited to your target market

A sales planning that is commonly used in business strategic planning is the VMGS Model.
When your organization wants to achieve higher sales targets through their planning, then
they use this framework for reaching the desired objective.

The VMGS model is based on the observation that, when you want to create an effective
plan, you will need to follow several elements, which are −

 Vision
 Mission
 Goals and objectives
 Strategies and tactics

Performance Measurement [ of sales forces]

Performance refers to output results and their outcomes obtained from processes, products,
and services that permit evaluation and comparison relative to goals, standards, past results,
and other organisations. Performance can be expressed in non-financial and financial terms.

Measurement refers to numerical information that quantifies input, output, and performance
dimensions of processes, products, services, and the overall organisation (outcomes).
Performance measures might be simple (derived from one measurement) or composite.
Performance measurement is fundamental to organisational improvement. The importance of
performance measurement has increased with the realisation that to be successful in the long-
term requires meeting (and therefore measuring performance against) all stakeholders' needs
including customers, consumers, employees, suppliers, local community stakeholders, and
shareholders. While the importance of performance measurement is difficult to quantify it is
evident that in virtually all texts, research, and case studies on organisational improvement,
that performance measurement plays a central role. It is worth noting that performance
measurement is a requirement for benchmarking and business excellence
Sales organisation consists of human beings or persons working together for the effective
marketing of products manufactured by the firm or the products purchased for resale. Sales
organisation co-ordinates the efforts of members of a group to bring about a desirable result.
It provides an efficient, economic and flexible administrative set up to ensure timely
movement of products from the warehouse to the ultimate consumer. Thus it provides
satisfactory job to buyers and sellers.

A sales organisation performs the functions of planning, organizing and controlling

marketing and distribution of products. Sales organisation is a foundation for effective sales
planning and sales policies. Systematic execution of plans and policies and programmes of a
sales organisation control all the sales activities. As such it ensures maximum efficiency and
profitability without losing consumer service and satisfaction.

The following are the important functions of a sales organisation:

1. Analysis of markets thoroughly, including product and market research.

2. Adoption of a selfishly sound but defensible sales policy.

3. Accurate market or sales forecasting and planning the sales campaign, based on relevant
data.

4. Deciding about prices and terms of sales and pricing policies.

5. Packaging for the consumer wants a container which will satisfy his desire for attractive
appearance, keeping qualities, utility, and correct price and many other factors.

6. Branding the product.

7. Deciding the channels of distribution.

8. Selection, training and control of salesmen and fixing their remuneration.

9. Allocation of Territory and quota-setting.

10. Sales programmers and sales promotion activities.

11. Arranging for advertising and publicity.

12. Order preparation and office recording.

13. Preparation of customer’s record cards.

14. Scrutiny and recording of reports.

15. Study of statistical records and returns.

16. Maintenance of salesmen’s records.

Sales Budget

A sales budget estimates the sales in units as well as the estimated earnings from these sales.
Budgeting is important for any business. Without a budget companies can’t track process or
improve performance. The first step in creating a master company while budget is to create a
sales budget.

Characteristics of good salesmen

Passionate, Ingenious, Empathetic, Accountable, Well Prepared, Tareget oriented, team sprit,
appetite for more , excellent communications, convening ability, patience, Tech-Savvy,
Highly Engaged, Goal Oriented, Relationship Driven
Unit – III

Recruiting, Selection and Training of Sales force

The recruitment and selection of a sales force often is the key to success for an organization.
A successful sales team leads to profitability and future growth. Most organizations that hire
sales professionals use a very detailed, well-orchestrated process to ensure that the candidates
selected will meet or exceed targeted sales goals.

Recruitment (hiring) refers to the overall process of attracting, short listing, selecting and
appointing suitable candidates for jobs (either permanent or temporary) within an
organization

The main selection process steps are:

Receiving applications: after passing the preliminary interview the candidate is asked to fill
the standard application form. The application form generally consists the information about
the age, qualification, experience etc. of the candidate on the basis of which the interviewer
gets the idea about the candidate and this information also helps in formulating questions.

Screening of applications: after receiving the applications the screening committee screens
the applications. Only the candidates who qualify the criteria of the screening committee are
called for the interview. Usually the candidates selected for interview are four to six times
than the number of posts. Interview letter is sent to them or they are called telephonically.
 Preliminary interview: the selection process generally starts with this step where the totally
unsuitable applicant is eliminated. Thus the organization is saved from the expenses of
processing the applicant through the remaining steps of selection

4. Employment test: after getting the interview letter and before going to the interview there
is one more step and that is the employment tests. These tests are done to check the ability of
the candidate. These tests vary from organization to organization and change as per the need
of the particular job. these tests are intelligence tests, aptitude tests, trade tests, interest test,
personality tests etc. these tests must be designed properly otherwise they will not good
indicator of one knowledge.

5. Employment interview: the candidates who qualify the above tests are called for the
employment interview. This interview is done to get more information about the candidate, to
give him the actual picture of what is required from him, to check the communication skill of
the candidate etc. for senior position post; a panel is prepared who take the interview. At the
end of interview of each candidate the members of panel discuss about the candidate and give
him the grades.

Checking references: before selecting the employ the prospective employee generally look
out for the referees given by the candidate. To check about the candidate’s past record,
reputation, police record etc.

Physical examination: The organizations generally prefer medical examination to be

incurred of the person to avoid time and expenditure spend on the medically unfit person.
Sometimes the organization may ask the candidate to get them examined from the medical
expert.

Final selection: after all these steps the candidate is selected finally. He is appointed by
issuing appointment letter. Initially he is appointed on probation basis after finding his work
satisfactory he is appointed as permanent employee of the organization or otherwise he may
be terminated.
Sales Training

It involves the personal development of skills and techniques related to creating and
exploring new sales opportunities, as well as closing sales for an organization

Elements of training [ACMEE]

 Aim of the training

 Contents of training
 Methodology adopted for training
 Execution of training and
 Evaluation post training

Selection tools

Unit –IV

Areas of sales Training

A company knowledge base can function like a repository, containing critical information
for the daily functioning of your business, as well as its long-term success. It provides an
effective way to store important information regarding your customers, employees, products,
and services. It helps employees access important information to address customer service
issues, resolve problems, and gain insight for workforce collaboration.

Product knowledge is an essential sales skill. Understanding your products' features allows you to
present their benefits accurately and persuasively. Customers respond to enthusiastic sales staff
who are passionate about their products and eager to share the benefits with them
Successful salespeople need the additional edge of knowing the industry they are pitching to, the
person they are dealing with and how their product or service can benefit the individual company to
whom it is proposed. This requires knowledge of not only your own company but your potential
customer’s company.

Modern day salespeople realize it takes more than just strategy and training to succeed in the
field. It requires the four key aspects of the potential client’s business that is integral to
delivering an efficient sales pitch.

 Knowledge of the customer includes an understanding of their business and daily

aspects of their job. This is how you determine what aspects of your service to
promote as being able to solve your client’s problems.
 Knowledge of the industry involves knowing what the competition offers and the
market in general, and the role of your client’s company in the overall scheme.
 Knowledge of the product is more than just knowing what your client offers but the
various applications it has and how it is commonly used and how it can potential
serve your customer’s clients.
 Knowledge of your client’s company means you understand their message, strategy
and why their product is of value.

Sales Meeting / Sales conference.

A sales meeting is a gathering in which a product or service is being discussed, and the
benefits are outlined to the potential buyer. The sales meeting is not always a presentation
format; it can sometimes be an informal conversation, phone call or online interaction. The
parties involved have this meeting between the initial contact and final purchase, in order to
entice the customer.

A sales contest is a motivational program in which rewards are offered to sales people based upon
their sales and/or results. There are three types: Direct competition — the sales people compete
against each other and there is one winner. Team competition — there are teams which are rewarded
collectively for winning

Sales compensation is the combination of base salary, commission, and incentives that are
used to drive the performance of a sales organization. A sales compensation plan is the
individual plan for a sales representative within your sales organization, and it should be
designed with specific concepts and components in mind, based on their role within the sales
cycle, types of sales engagements, seniority, and more. Different sales team roles will require
plans that are unique to each rep. Sales compensation management is the method of
overseeing plans and ensuring components drive performance aligned with organizational
goals.

Non-monetary compensation

It include benefits, flex-time, time off, free or discounted parking, gym membership
discounts, retirement matching, mentoring programs, tuition assistance, and childcare. A
benefits plan is designed to address a specific need and is often provided in a non-cash form.