Chapter 1 : Sales Management and the Business Enterprise

Difference between Selling Marketing

Emphasis is on the product

Company manufacturers the product first and then decides to sell it

Emphasis on consumer needs and wants Company first determines customers needs and wants and then decides on how to deliver a product to satisfy these wants Management is profit-oriented Planning is long-term oriented, in terms of new products, tomorrows markets and future growth Stresses needs and wants of buyers Views business as consumer satisfying process

Management is sales-volume oriented Planning is short-term oriented, in terms of today's products and markets Stresses needs of a seller Views business as a goods producing process

Difference between Selling Marketing

Emphasis on staying with existing technology and reducing cost

Different departments work as highly separate watertight compartments

Cost determines price Selling views customers as the last link in business

Emphasis on innovation in every sphere, on providing better value to the customers by adopting a superior technology All departments of business operate in an integrated manner, the sole purpose been generation of customer satisfaction Consumer determine price, price determines cost Marketing views the customers as the very beginning of a business

Starting point

Focus

Means

Ends

Factory

Factory

Selling and Promoting

Profits thru sales volume

Selling Concept

Market

Consumer

Coordinated marketing

Profits thru customer satisfaction

Marketing Concept

Evolution of Sales Department

Industrial Revolution

Nearby market Moved to other countries Large scale manufacturing enterprises Special functional departments into existence Advent of specialized sales department Advent of middlemen Retailers Advent of other marketing activities like advertising and sales promotions

Emerging Trends in Sales Management

Technology

Customer Orientation

Emerging Trends in Sales Mgmt

Relationship Selling

Global and Ethical issues

Diversity New Selling Methods

Sales Management

The planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these task apply to the personal sales force.

Objectives

Sales Volume Contribution to profits Continuing growth

Sales Management and Financial Results

Influences gross margin and net profit Sales, gross margin and expenses are affected by the caliber and performance of sales management

Sales Executive coordinator responsibilities

Organization and coordination

Order-getting methods ( Personal selling, advertising) Mktg vice president, director of marketing Knowledge about the market Aid in advertising, personal selling

Planning and coordination

Coordination with Other elements in the Marketing Program

Personal selling along with advertising, display other promotional efforts Build coordination

Coordination with the Distributive Network

Important aspects gaining distribution, obtaining dealer identification, reconciling business goals and sharing promotional risks

Gaining product distribution

New product distribution forced distribution

Obtaining dealer identification

Address of local stores which stock the product No sales if dont know where to find Self-service retailers Display Timings to coincide with the promotional activity

Coordination with the Distributive Network

Sharing promotional risk

Cooperative advertising manufacturer. middlemen

Overall Marketing Strategy

General Sales Management Sales Branch Inventory Control Sales Branch Sales Sales Training Sales operation Publicity Sales Promotion Advertising

Sales Management and Control

Sizing up the situation

Where are we now? How did we get there? Where are we going How do we get there Measure performance

Setting quantitative performance standards

Sales Management and Control

Evaluating performance

Comparing actual results with standards Territorial differences External factors Training Workshops Restraint

Action to correct controllable variation

Adjusting for uncontrollable variations

Sales Control

Informal Control

Smaller companies finger on the pulse of the business Bigger companies

Formal control and written sales policies Policy Formulation and review Formal control over sales volume

Sales volume Control over sales volume to control over margins and expenses and hence over profits

Budgetary control