EVOLUTION OF SALES

MANAGEMENT

 There was a very big change which

occurred pre and post 1950’s.
 Situation before industrial revolution in U.K.
(1760 AD).
 Situations after industrial revolutions in U.K.,
and U.S.A.
 Marketing function splits into sales and
other functions like marketing research,
advertising, physical distribution, and
customer service.

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 SITUATION BEFORE INDUSTRIAL
REVOLUTION IN UK.
 This was the era of the product concept and the
production concept.
 Dominance of the small-scale manufacturers

on the economy.
 Supremacy of production or manufacturing

function.
 Selling was not at all an important function.

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 SITUATION AFTER THE
INDUSTRIAL REVOLUTION IN U.K
AND U.S
 Large-scale/ capital intensive manufacturers took over
small-scale/labor intensive manufacturing
 Separate functional departments arose in the form of
manufacturing, finance and sales.
 The focus shifted from product/production to the selling concept,
where the seller remained the king During1950’s, most colonies in
the world started getting independence.
 Gradually, industrialization began all over the world. It was realized
that the seller could not be the king now. And, the focus began to
shift from, the seller to the buyer
 Due to extensive production of goods and excessive competition, it
is important that marketers and organizations make, what the
customer wants.
 And, the sales function, which was merely the art of transactions,
began to lose its importance.
 The marketing function (like sales promotion, advertising and sales
management) which was more holistic in nature began to gain 3
 WHAT IS SALES
MANAGEMENT?
 One definition: The management of the
personal selling part of a company’s
marketing function.
 Another definition: The process of
planning, directing, and controlling of
personal selling, including recruiting,
selecting, equipping, assigning, supervising,
paying, and motivating the personal sales
force.

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 NATURE OF SALES
MANAGEMENT
It includes :
(1) Its integration with marketing management.
(2) Scope of sales management.
(3) Roles and skills of a modern sales management.

Its Integration with Marketing

ManagementHead-
Marketing

Manager- Manager – Manager – Manager – Manager –

Promotion Marketing Sales Market Customer
Research Logistics Service
 SCOPE OF SALES
MANAGEMENT
During early period, it was narrow :
namely, (i) recruiting, (ii) selecting (iii)
training, (iv) motivating and (v)
supervising salespeople
Present period, it is broader.
It includes, in addition to above tasks,
following:
(vi) forecasting sales, (vii) designing sales
territories, (viii) coordinating internally &
externally, (ix) participating in budgeting
& strategic planning processes.
 ROLES AND SKILLS OF A MODERN
SALES MANAGER
Some of the important roles / functions of a
modern sales manager are:

• Senior level sales manager is a member of the

strategic management team.
• Coordinate internally and externally.
• First level sales manager is a team leader,
working with and managing salespeople.
• Managing multiple sales / marketing channels.
• Using technologies (like CRM) to build superior
buyer-seller relationships.
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SKILLS OF A SUCCESSFUL SALES
MANAGER
 People skills include abilities to motivate,
lead, communicate, coordinate, develop
team-oriented relationships, mentor, and
resolve conflicts.
 Managing skills consist of planning,
organizing, controlling and decision making.
 Technical skills include training, selling,
negotiating, problem-solving, and use of
computers.

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IMPORTANCE OF SALES
MANAGEMENT

 The only function / department in a company

that generates revenue / income.
 The financial results of a firm largely depend
on the performance of the sales management
 Many salespeople are among the best paid
people in business.
 It is one of the fastest and surest routes to the
top management through many positions.
 Fresh graduates need knowledge of sales
management.

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LEVELS OF SALES MANAGEMENT
POSITIONS
CEO /
President
V. P. Sales /
V. P. Top-Level Sales
Marketing Managers / Leaders
National Sales
Manager

Regional / Zonal / Divisional Middle-Level Sales Managers

Sales Managers

First-Level Sales
District / Branch / Area Sales Managers
Managers

Sales Trainee / Sales Person / Sales

Representative
 NATURE OF PERSONAL SELLING.
IT INCLUDES:
(I) TRANSACTIONAL AND RELATIONSHIP SELLING.
(II) VARYING SALES POSITIONS.
(III) SALES AS A CAREER.

Transactional and Relationship Selling

* Transactional selling focuses on getting
an order or closing the sale.
* Relationship selling builds long-term
relationships with key customers.
 Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.
• Order taker salesperson. • Inside order taker. • Behind a counter in a garment shop
•Telemarketing salesperson takes • Pharmaceutical products’ orders from
orders over telephone. nursing homes.
• Outside order taker. Also performs • Food, clothing products’ orders,
other tasks. market information from retailers.

• Sales support salespeople • Provide information, build goodwill, • Medical reps. in pharmaceutical
• Missionary selling introduce new products industry.
• Technical selling • Technical information, assistance • Steel, Chemical industries

• Creative, Problem-solving, • Getting orders from existing and new • Automobiles, refrigerators, insurance
Consultative sellers. household consumers policies
• Getting orders from business • Software and business solutions.
customers, by solving their business
and technology problems

•Key account sales executive •Responsible for few important •OEM customer like Tata Motors for a
customers. tyre manufacturer.
 SALES AS A CAREER

 There are various sales positions

 There are several levels of sales management
position.
 Companies develop attractive compensation plans
for salespeople.
 Exciting and challenging sales career- as it deals
with people whose needs/wants are ever- changing.
 Fastest route to the top management positions
through sales management.
 SOME ASPECTS OF
STRATEGIC SALES
MANAGEMENT
 Development of the strategic sales organization.
 The strategic role of the selling function.
 Choosing target customers and retaining them.
 The role of sales force and customer relationship
management strategy.
 Designing sales territories and sales force
deployment.
 Long-term sales planning and forecasting.
 Strategic sales management plan should be based
on the strategic marketing plan which should be
consistent with the company’s strategic plan.
 Sales Planning Includes
SALES OBJECTIVES, STRATEGIES
AND TACTICS
The main components of planning in a company are
objectives, strategies and tactics. Their relationship is
shown below

Decide / Set Evolve Tactics /

Develop Strategies Action Plans
Objectives

E.G. A company wants to increase sales of electric motors by 15

percent, as one of the sales objectives. (see the next slide)

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 ILLUSTRATING THE RELATIONSHIP BETWEEN SALES
OBJECTIVES,
STRATEGIES AND TACTICS IN SALES PLANNING
Sales Goals / Marketing Sales and Distribution Tactics /
Objectives Strategy Strategies Action plans

 Increase  Enter  Identify the countries  Marketing / sales head to

sales export get relevant information
volume by markets  Decide distribution channels  Negotiate and sign
15 percent agreements in 3-5 months
with intermediaries

 Penetrate  Review and improve sales  Add channels and channel

existing force training, motivation partners.
domestic and compensation  Train salespeople in
markets  Use effective and efficient deficient areas.
channels.  Train field sales managers
in effective supervision.
 Link sales volume quotas
to the incentive scheme of
the compensation plan.
 EMERGING TRENDS IN SALES
MANAGEMENT
 Global perspective.
 Revolution in technology.
 Customer relationship management (CRM) / Sales
Force Automation ( SFA )
 Sales force diversity.
 Team selling approach.
 Managing multi-channels marketing systems.
 Ethical and social issues.
 Sales professionalism.
 E-Selling.

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