Sales management is a sub-system of marketing management. It is sales management that translates the marketing plan into marketing performance. That is why sales management is sometimes described as the muscle behind the marketing management. Actually sales management does much more than serving as the muscle behind marketing management. Sales managers is modern organization are required to be customer-oriented and profit-directed and perform several tasks besides setting and achieving personal selling goals of the firm. In this unit let us understand briefly the sales management, tasks involved in the sales management etc.
Definition
Sales management originally reffered exclusively to the direction of the sales force. Later the term took on broader significance-in addition to the management of personal selling.
Sales management meant of all marketing activities, including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.
According to the definition committee of the American marketing association sales management meant “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”.
Showing posts with label Sales Force management. Show all posts
Showing posts with label Sales Force management. Show all posts
Monday, January 12, 2009
Tuesday, December 30, 2008
Sales Organization
Definition of Sales Organization
The value-based orientation and set-up of sales channels and management structures is a central part of sales control. In the past, having an extensive agency network was a central success factor. In the future, the focus is more likely to be on networking of various sales channels (key word: multi-channel). This will mean numerous changes, for example in the supply of the necessary information, in the management of sales channels, and also in the creation of customer-friendly product bundles. Integrated reconciliation of sales activities and avoidance of channel conflicts will be of great importance.
Building the sales organization
The sales department in any organization occupies strategic position. Of all company personnel, those in the sales department are in the closest touch with final buyers and middlemen. Sales department personnel also work closely with such key publics as the industry, the government, the educational world and the press. How these representatives of the sales department conduct themselves with the public affects the company’s reputation. Good relations depend in larger measure upon the skill with which personnel selling programs are planned and executed, thus building an good sales organization plays a very important role in maintaining above said relations and promote the sales.
The value-based orientation and set-up of sales channels and management structures is a central part of sales control. In the past, having an extensive agency network was a central success factor. In the future, the focus is more likely to be on networking of various sales channels (key word: multi-channel). This will mean numerous changes, for example in the supply of the necessary information, in the management of sales channels, and also in the creation of customer-friendly product bundles. Integrated reconciliation of sales activities and avoidance of channel conflicts will be of great importance.
Building the sales organization
The sales department in any organization occupies strategic position. Of all company personnel, those in the sales department are in the closest touch with final buyers and middlemen. Sales department personnel also work closely with such key publics as the industry, the government, the educational world and the press. How these representatives of the sales department conduct themselves with the public affects the company’s reputation. Good relations depend in larger measure upon the skill with which personnel selling programs are planned and executed, thus building an good sales organization plays a very important role in maintaining above said relations and promote the sales.
Monday, December 29, 2008
Sales Control
Sales co-ordination and sales controlling including sales expense control
Sales co-ordination goes hand in hand with sales control. The sales executives have the responsibility for co-ordinating the different elements of the selling efforts. He should ensure that the various elements do not pull in different direction.
It is through sales control that the sales executive ensures that all the personnel selling objectives of the firm are achieved. Sales control also helps him to ensure that the sales goals are properly aligned with the other goals of the firm. Even in online business sales control is very much important factor. Online blinds store who are selling roller shades and woven wood shades, for them sales control is very much important factor.
Methods of sales control:
Sales managers use both formal and informal control methods in exercising sales control. The more common one among the methods of sales control are as follows:
a) Sales targets and sales reports
b) Sales expenditure budget and expenditure reports
c) Travel plan and tour reports
d) Watching the salesman in the field
e) Information gathered from dealers and major customers.
f) Inspection of depots/warehouse
g) Sales conferences.
In our next post we will discuss on some important part of sales force management and which is Sales Organization and sales promotion.
Sales co-ordination goes hand in hand with sales control. The sales executives have the responsibility for co-ordinating the different elements of the selling efforts. He should ensure that the various elements do not pull in different direction.
It is through sales control that the sales executive ensures that all the personnel selling objectives of the firm are achieved. Sales control also helps him to ensure that the sales goals are properly aligned with the other goals of the firm. Even in online business sales control is very much important factor. Online blinds store who are selling roller shades and woven wood shades, for them sales control is very much important factor.
Methods of sales control:
Sales managers use both formal and informal control methods in exercising sales control. The more common one among the methods of sales control are as follows:
a) Sales targets and sales reports
b) Sales expenditure budget and expenditure reports
c) Travel plan and tour reports
d) Watching the salesman in the field
e) Information gathered from dealers and major customers.
f) Inspection of depots/warehouse
g) Sales conferences.
In our next post we will discuss on some important part of sales force management and which is Sales Organization and sales promotion.
Sales report
Today we are going to discuss on Sales Report and user of sales reports and types of sales reports. The fundamental purpose of sales reports is to provide control information. Good communications require interaction between those preparing and those receiving reports. A good sales reporting system provides both for communication from field to headquarters and from headquarter to the field. Field sales reports provide sales management with a basis for discussion with sales personnel and it helps to the sales personnel in their self-improvement programs.
Uses of sales reports:
a) Sales reports provide data for evaluating performance.
b) Helps to plan the activity to the salesman.
c) Helps to record the customers suggestions and complaints, about products, service policies, price changes advertising campaigns etc.
d) Helps to gather information on competitors activities.
e) Helps to report changes in local business and economic conditions.
f) To keep the mailing list updated for promotional and catalog materials.
g) To provide information required by marketing research.
Types of sales report:
a) Progress or call report
b) Expense report
c) Sales work plan
d) New business or potential new business report
e) Report of complaint and/or adjustments
Uses of sales reports:
a) Sales reports provide data for evaluating performance.
b) Helps to plan the activity to the salesman.
c) Helps to record the customers suggestions and complaints, about products, service policies, price changes advertising campaigns etc.
d) Helps to gather information on competitors activities.
e) Helps to report changes in local business and economic conditions.
f) To keep the mailing list updated for promotional and catalog materials.
g) To provide information required by marketing research.
Types of sales report:
a) Progress or call report
b) Expense report
c) Sales work plan
d) New business or potential new business report
e) Report of complaint and/or adjustments
Sunday, December 21, 2008
Managing the marketing channels
It is very important to secure and maintain harmonious working relationships with the distributive networks are an important as building and maintaining favourable relations with final buyers. Distributive outlets are customers for the products, and collectively they bear responsibility for making the pay-off sales to final buyers. Unless the supply of product flows through the final buyers, marketing channels clog, and all previous personnel selling and other marketing efforts are wasted.
Both the manufactures and distributive outlets have much to gain from co-operation, and much to loose if it is lacking. Although co-operation is a two way street, generally the manufacturer must initiate it. Those charged with planning, administration, and implementation of programs of co-operation with distributive outlets must consider the implications for personal selling strategy and sales department operations.
No manufacturers marketing program is complete if it lacks plan for securing and maintaining the co-operation of the distributive outlets. The fortunes of manufacturers rise and fall with those of their distributors and dealers. If distributors and dealers succeed in selling the products, the manufacturer also succeeds if they fail the manufacturer fails.
Both the manufactures and distributive outlets have much to gain from co-operation, and much to loose if it is lacking. Although co-operation is a two way street, generally the manufacturer must initiate it. Those charged with planning, administration, and implementation of programs of co-operation with distributive outlets must consider the implications for personal selling strategy and sales department operations.
No manufacturers marketing program is complete if it lacks plan for securing and maintaining the co-operation of the distributive outlets. The fortunes of manufacturers rise and fall with those of their distributors and dealers. If distributors and dealers succeed in selling the products, the manufacturer also succeeds if they fail the manufacturer fails.
Tuesday, December 16, 2008
Training and development
In every area training is the prerequisite to improvement, like-wise the purpose pf sales training is to achieve improved job performance, and the training should rest on the convictions that every salesman can be improved through carefully designed training
Steps involved in designing sales training:
1. Defining training aims.
2. Determining the training needs.
3. Determining the special needs.
4. Deciding nature and type of training required: Normally following are the some types of training, In company training, external training, individual training, group training, on-the job training, off-the job training.
5. Deciding the content.
6. Choosing the methods: The lecture, the personal conference, demonstrations, role playing, case discussions etc.
7. Developing the material required for training.
8. Evaluating the effectiveness of the training.
Aims of Sales training: Normally the sales training will have following aims to inculcate new techniques or to improve upon the existing knowledge.
1. To increase sales.
2. To acquire new accounts.
3. Faster turn round stocks.
4. Selling a complete product line instead of just fast selling items.
5. Better merchandising and sales promotion.
6. Better technical knowledge.
7. Improving sales presentation and sharpening sales skills.
8. Improving customer relations and dealer relations.
blinds, roller shades, woven wood shades
Steps involved in designing sales training:
1. Defining training aims.
2. Determining the training needs.
3. Determining the special needs.
4. Deciding nature and type of training required: Normally following are the some types of training, In company training, external training, individual training, group training, on-the job training, off-the job training.
5. Deciding the content.
6. Choosing the methods: The lecture, the personal conference, demonstrations, role playing, case discussions etc.
7. Developing the material required for training.
8. Evaluating the effectiveness of the training.
Aims of Sales training: Normally the sales training will have following aims to inculcate new techniques or to improve upon the existing knowledge.
1. To increase sales.
2. To acquire new accounts.
3. Faster turn round stocks.
4. Selling a complete product line instead of just fast selling items.
5. Better merchandising and sales promotion.
6. Better technical knowledge.
7. Improving sales presentation and sharpening sales skills.
8. Improving customer relations and dealer relations.
blinds, roller shades, woven wood shades
Friday, December 12, 2008
Sales Approaches
Symptoms of poor morale:
1. Minor complaints get magnified.
2. Unionism suddenly arises.
3. Anti-management attitude of sales personnel.
Sales coaching/supervision: It is also important factor in sales management. It is perhaps the most neglected, but potentially most rewarding area. Effective sales supervision will increase sales and profits and reduce selling expense. It will also improve the morale and motivation of the salesman and reduce their wasteful turnover. The extent and sales supervision may vary depending the complexity of the organization. Important aspect that requires close supervision includes.
1. Setting norms for sales calls.
2. Managing key customers.
3. Guiding salesman on route planning.
Evaluation/appraisal: The basic idea of all performance appraisals is the belief that human beings have great capacity for growth and improved performance under right climate for performance, they will respond creatively and positively. The same principle applies equally to the performance appraisal of sales personal. The sales personnel perform better when performance criteria, goals, and tasks are established clearly and by mutual agreement. Likewise their performance is considerably improved when they are given periodic feedback on how they are performing and in what areas they can improve by greater application. The sales personnnel performance helps debt consolidation work in company. They also come up with improved performance when they are given the necessary help and guidance on the job and are rewarded promptly according to their contribution.
1. Minor complaints get magnified.
2. Unionism suddenly arises.
3. Anti-management attitude of sales personnel.
Sales coaching/supervision: It is also important factor in sales management. It is perhaps the most neglected, but potentially most rewarding area. Effective sales supervision will increase sales and profits and reduce selling expense. It will also improve the morale and motivation of the salesman and reduce their wasteful turnover. The extent and sales supervision may vary depending the complexity of the organization. Important aspect that requires close supervision includes.
1. Setting norms for sales calls.
2. Managing key customers.
3. Guiding salesman on route planning.
Evaluation/appraisal: The basic idea of all performance appraisals is the belief that human beings have great capacity for growth and improved performance under right climate for performance, they will respond creatively and positively. The same principle applies equally to the performance appraisal of sales personal. The sales personnel perform better when performance criteria, goals, and tasks are established clearly and by mutual agreement. Likewise their performance is considerably improved when they are given periodic feedback on how they are performing and in what areas they can improve by greater application. The sales personnnel performance helps debt consolidation work in company. They also come up with improved performance when they are given the necessary help and guidance on the job and are rewarded promptly according to their contribution.
Thursday, December 11, 2008
Motivation of sales personnel
Motivation sales personnel is an important aspect of sales force management sales force management sales personnel require additional motivation because of inherent nature of the sales job, role conflicts, the natural tendency towards apathy, and difficulties in building group identity. The concept of need gratification and interdependence assist in understanding efforts require that sales personnel. Implementing motivational efforts require that sales executives be skilled leaders, rather than drivers, of sales personnel. It demands that they be skilled in interpersonal and written communications. Satisfactory job performance develop out of deep understanding of motivational forces and process, effective leadership, two-way communication, and effective handling of relationships.
Moral building: Motivation in the larger sense includes morale good morale leads to good motivation and to good performance. In other words, morale and motivation go to hand in hand, it is the responsibility of sales management to built up the morale of the sales force and maintain it at high level. Following are the some of the reasons for poor morale.
1. Improper designing of the sales territories.
2. Some salesman might be given territories with little potential.
3. The compensation plan may be faulty.
4. Performance evaluation not done with fairness and objectivity.
5. Unfair treatment in rewards, transfer and promotions.
Moral building: Motivation in the larger sense includes morale good morale leads to good motivation and to good performance. In other words, morale and motivation go to hand in hand, it is the responsibility of sales management to built up the morale of the sales force and maintain it at high level. Following are the some of the reasons for poor morale.
1. Improper designing of the sales territories.
2. Some salesman might be given territories with little potential.
3. The compensation plan may be faulty.
4. Performance evaluation not done with fairness and objectivity.
5. Unfair treatment in rewards, transfer and promotions.
Monday, December 8, 2008
Compensation plan types
Types of compensation plans:
A. Straight salary plan:
This is the simplest compensation plan under this plan sales person receive fixed sums at regular intervals, representing total payments for their services. This method has advantages as well as disadvantages it should be carefully chosen according to the type of product industry.
B. Straight-commission plan:
This plan mainly relies on the theory that the sales personnel should be paid according to productivity. The assumption underlying this plan is that sales volume is the best productivity measure and can therefore be used as the sole measure.
C. Combinations of salary and incentive plan: Most sales compensation plans are combinations of salary and commission plans. It includes fixed salary plus incentive according to the performance of the individual sales person.
Apart from the above methods some companies may have the system of paying bonus and fringe benefits, Bonus differ from combinations – Infact a bonus is a amount paid for accomplishing a specific sales task a commission varies in amount with sales volume or other commission base. Fringe benefits, which do not bear direct relationship to job performance, it is normally percent of the total sales performance package, out of which some are required by legal and government such as provided fund, gratuity, etc.
roman shades, vertical blinds, window blinds
A. Straight salary plan:
This is the simplest compensation plan under this plan sales person receive fixed sums at regular intervals, representing total payments for their services. This method has advantages as well as disadvantages it should be carefully chosen according to the type of product industry.
B. Straight-commission plan:
This plan mainly relies on the theory that the sales personnel should be paid according to productivity. The assumption underlying this plan is that sales volume is the best productivity measure and can therefore be used as the sole measure.
C. Combinations of salary and incentive plan: Most sales compensation plans are combinations of salary and commission plans. It includes fixed salary plus incentive according to the performance of the individual sales person.
Apart from the above methods some companies may have the system of paying bonus and fringe benefits, Bonus differ from combinations – Infact a bonus is a amount paid for accomplishing a specific sales task a commission varies in amount with sales volume or other commission base. Fringe benefits, which do not bear direct relationship to job performance, it is normally percent of the total sales performance package, out of which some are required by legal and government such as provided fund, gratuity, etc.
roman shades, vertical blinds, window blinds
Saturday, November 29, 2008
Managing the Sales Force-1
Managing the sales force involves the following conceptual activities, let us discuss each of them briefly.
1. Compensation
2. Motivation of sales personnel
3. Morale Building
4. Sales coaching/supervision
5. Evaluation/appraisal
6. Training and development
1. Compensation: Once a sales personal is selected it is necessary to design a good sales compensation plan, according to experts sales compensation plan meets the following requirements.
It provides a living wage.
The plan fits with the rest of the motivational program.
Plan should be fair.
It must easy for sales personal to understand.
Plan must adjust pay according to change in performance.
It must be economical to administer.
It must help in attaining the objectives of the sales organizations.
Steps in devising the good compensation plan: Whether contemplating major or minor changes or drafting completely new sales compensation plan, the sales executive approaches the project systematically, good compensation are built on solid foundations. A systematic approach assures that no essential step is overlooked, they are:
a. Define the sales job.
b. Consider the company’s general compensation structure.
c. Consider compensation patterns in company and industry.
d. Determine compensation levels.
e. Provide for the various compensation elements.
f. Consider special company needs and problems.
g. Consult the present sales force.
h. Reduce tentative plan to writing and preset it.
i. Revise the plan.Implement the plan and provide for follow up.
window blind store, premierinns, term life insurance
1. Compensation
2. Motivation of sales personnel
3. Morale Building
4. Sales coaching/supervision
5. Evaluation/appraisal
6. Training and development
1. Compensation: Once a sales personal is selected it is necessary to design a good sales compensation plan, according to experts sales compensation plan meets the following requirements.
It provides a living wage.
The plan fits with the rest of the motivational program.
Plan should be fair.
It must easy for sales personal to understand.
Plan must adjust pay according to change in performance.
It must be economical to administer.
It must help in attaining the objectives of the sales organizations.
Steps in devising the good compensation plan: Whether contemplating major or minor changes or drafting completely new sales compensation plan, the sales executive approaches the project systematically, good compensation are built on solid foundations. A systematic approach assures that no essential step is overlooked, they are:
a. Define the sales job.
b. Consider the company’s general compensation structure.
c. Consider compensation patterns in company and industry.
d. Determine compensation levels.
e. Provide for the various compensation elements.
f. Consider special company needs and problems.
g. Consult the present sales force.
h. Reduce tentative plan to writing and preset it.
i. Revise the plan.Implement the plan and provide for follow up.
window blind store, premierinns, term life insurance
Thursday, November 27, 2008
Creating the Sales Force-1
Source of sales force recruitment: Is categorized into two types’-namely internal sources and external sources.
An internal source consists of: Company sales personnel, company executive and internal transfers. An external source consists of: direct unsolicited applications, employment agencies, sales people making calls on the company, employees of customers, sales executives club, sales force of non-competing companies, sales force of competing companies, educational institutions etc.
Selection: Selection system of sales personal range from simple one step system consisting of nothing more than an informal personal interview, to complex multiple step system incorporating diverse mechanisms designed to gather information about applicant for sales jobs. A selection system is a set of successive ‘screens’ at any of which an applicant may be dropped from further considerations.
Steps involved in sales personnel selection: Normally following are the steps used in most of the company’s for the selection of the sales personal:
1. Preliminary interview and pre-interview screening.
2. Formal application form.
3. Interview: The techniques may consist of, patterned interview,
non-directive interview, interaction interview.
4. Rating scales.
5. References and credit check.
6. Tests: Tests may be consists of following types – tests of ability
tests of habitual characteristics, Interest tests, achievement test.
7. Physical examination.
An internal source consists of: Company sales personnel, company executive and internal transfers. An external source consists of: direct unsolicited applications, employment agencies, sales people making calls on the company, employees of customers, sales executives club, sales force of non-competing companies, sales force of competing companies, educational institutions etc.
Selection: Selection system of sales personal range from simple one step system consisting of nothing more than an informal personal interview, to complex multiple step system incorporating diverse mechanisms designed to gather information about applicant for sales jobs. A selection system is a set of successive ‘screens’ at any of which an applicant may be dropped from further considerations.
Steps involved in sales personnel selection: Normally following are the steps used in most of the company’s for the selection of the sales personal:
1. Preliminary interview and pre-interview screening.
2. Formal application form.
3. Interview: The techniques may consist of, patterned interview,
non-directive interview, interaction interview.
4. Rating scales.
5. References and credit check.
6. Tests: Tests may be consists of following types – tests of ability
tests of habitual characteristics, Interest tests, achievement test.
7. Physical examination.
Thursday, December 27, 2007
Sales Territories - SFA Software
Sales Force Management we are talking here. Agency management system include sales force management, as part of that we talk Sales Force Automation and also structuring sales force. Today we are going to talk Sales Territories.
Definition:A sales territory is a grouping of customers and prospects assigned to an individual sales person.
Definition:A sales territory is a grouping of customers and prospects assigned to an individual sales person.
In reality, sales planning are done on the basis of sales territory, depending on the characteristics of customer and prosperity vary from one sales territory to another, and some times even from one zone to another zone, or country, a territory is more homogenous unit than the market as a whole,.
Breaking down the total market into smaller units makes control of sales operations more effective. Assigning responsibility for achieving specific objectives to subordinate line executives and individual sales personnel bring selling efforts into alignment with sales opportunities. The emphasis in sales territory concept is upon customers and prospects rather than upon the area in which an individual sales person works.
Friday, December 14, 2007
Sales Force Size - Sales Force Management Software
Sales Force Management we are talking here. In my last talk we talk about Structuring Sales Force. Before that We talked Sales Force Automation, Sales Policies Formulation, Product Polices, Distribution Policies and Pricing Policies.
Today we continue our talk on Sales Force Management and we talk about Deciding the size of the Sales Force Team.
Deciding the size of the Sales Force:-
Under this activity management need to determine how many number of sales man required meeting sales volume and profit objectives. If a company has too few sales persons, opportunity for sales and profits go unexploited, and if it has too many, excessive expenditure for personal selling reduce net profit. It is difficult perhaps impossible to determine exact number of salespersons that a particular company should have. Three basic approaches are used in approximating the sales force size they are:
Today we continue our talk on Sales Force Management and we talk about Deciding the size of the Sales Force Team.
Deciding the size of the Sales Force:-
Under this activity management need to determine how many number of sales man required meeting sales volume and profit objectives. If a company has too few sales persons, opportunity for sales and profits go unexploited, and if it has too many, excessive expenditure for personal selling reduce net profit. It is difficult perhaps impossible to determine exact number of salespersons that a particular company should have. Three basic approaches are used in approximating the sales force size they are:
- Workload Method
- Sales Potential Method
- Incremental Method
Tuesday, December 11, 2007
Structuring Sales Force - Sales Force Automation (SFA)
Sales Force Management we are talking here. We talked Sales Force Automation, Sales Policies Formulation, Product Polices, Distribution Policies and Pricing Policies.Today we are going to talk about Structuring Sales Force.
Organizations usually structure their sales force on a territory basis or on a product/product line basis. In the case of territory based structuring, the same salesman handles all the products or product lines of the firm in given territory, which will be compact.
In the case of product based structuring, several salesman of the firm operate in a given territory, each handling different products of firm. Here the sales territories will be relatively larger.
Sometimes the sales force is also structured based on customer type or customer class, in yet other case sales force is structured on a complex basis, involves a combination of the types mentioned above.
ref: sales force Automation software
Organizations usually structure their sales force on a territory basis or on a product/product line basis. In the case of territory based structuring, the same salesman handles all the products or product lines of the firm in given territory, which will be compact.
In the case of product based structuring, several salesman of the firm operate in a given territory, each handling different products of firm. Here the sales territories will be relatively larger.
Sometimes the sales force is also structured based on customer type or customer class, in yet other case sales force is structured on a complex basis, involves a combination of the types mentioned above.
ref: sales force Automation software
Thursday, December 6, 2007
Pricing Policies - Sales Policies - Sales Force Management
Sales Force Automation is part of Sales Force Management . We were talking about Sales Policies Formulation and we talk about product police and Distribution policies.
Today we are going to talk about Pricing Policies as part of sales policies formulation.
Today we are going to talk about Pricing Policies as part of sales policies formulation.
- Policy on pricing relative to the competition such as, setting the price of product to meet the competition, pricing above the competition, pricing under the competition.
- Policy on pricing relative to costs. Full cost pricing, promotion pricing, contribution pricing.
- Policy on uniformity of prices to different buyers.
- Policy on list pricing.
- Policy on discounts; trade discounts, quantity discounts.
Monday, December 3, 2007
Distribution Policies - Sales Policies - Sales Force Management
Sales Force Automation is part of Sales Force Management we are talking here. As a part of our talk about sales force management we were talking about Sales Policies Formulation and we talk about product police as part of sales policies formulation.
Today we are going to talk about Distribution Policies as part of sales policies formulation.
Distribution policies (who to sell): The component policies related to distribution are :
Today we are going to talk about Distribution Policies as part of sales policies formulation.
Distribution policies (who to sell): The component policies related to distribution are :
- Channel design and channel types
- Channel remuneration, motivation and training.
- Channel principal relations.
- Channel costs.
Wednesday, November 28, 2007
Product Policies - Sales Policies - Sales Force Management
Sales Force Management we are talking here. Sales Policies Formulation was our last post and before that we talk different aspect of Sales Force Management including Sales Force Management and Sales Management-Task Involved, Setting Personal Selling Objectives.
Formulating sales policies is nothing but the policies related to marketing. These sales related marketing policies delineate the guide lines within which the effort to reach personal selling objectives is made. There are three major types:
Formulating sales policies is nothing but the policies related to marketing. These sales related marketing policies delineate the guide lines within which the effort to reach personal selling objectives is made. There are three major types:
- Product policies (what to sell).
- Distribution policies (who to sell).
- Pricing policies.
we talk each of the about types of sales policies.
1) Product Policies (what to sell):-
- Which product should find a place in the product line?
- Whether some of the existing products are to be dropped?
- Whether any new products are to be added?
- Whether product design or product quality needs to be changed?
- What models, type, size, colors and packing are to be sold?
- What kinds of product guarantees are to be given?
we talk about remaining two types in our next post.
Friday, November 23, 2007
Sales Policies Formulation - Sales Management Task2
We talk about Sales Force Management and Sales Management-Task Involved in our previous talk and also we talk our first task that is Setting Personal Selling Objectives which we have mention in our task involved list in our talk on Sales Management and Sales Force Management.Today we are going to talk on second task and that is Sales Policies Formulation.
Formulation sales policies is nothin but the policies reltaed to marketing. There sales related marketing policies delineate the guide lines within which the effort to reach personal selling objectives is made. There are three major types:
1) Product Policies (what to sell)
2) Distribution Policies (who to sell)
3) Pricing Policies
We talk on each of these policies in our next post.
Formulation sales policies is nothin but the policies reltaed to marketing. There sales related marketing policies delineate the guide lines within which the effort to reach personal selling objectives is made. There are three major types:
1) Product Policies (what to sell)
2) Distribution Policies (who to sell)
3) Pricing Policies
We talk on each of these policies in our next post.
Wednesday, November 21, 2007
Personal Selling Objectives-Sales Management Task-1
Setting Personal Selling Objectives
Marketing management in consultation with sales management determines person selling’s exact role in the promotional program. Usually the marketing planning group sets personal selling objectives, determines sales related marketing policies, formulates personal selling strategies and finalizes the sales budget.
Types of personal selling objectives:
Selling objectives broadly classified into two categories they are qualitative objectives and quantitative objectives.
Qualitative objectives:
1) To do the entire selling job.
2) To service existing accounts.
3) To search out and obtain new customers.
4) To secure and maintain customers co-operation in stocking and promoting the product line.
5) To keep customers informed on changes in the product line and other aspects of marketing strategy.
6) To assist customers in selling the product line.
7) To provide technical advice and assistance to customers.
8) To assists with the training and middlemen’s sales personnel.
9) To provide advice and assistance to middlemen on management problems.
10) To collect and report market information of interest and use to company management.
Quantitative Objectives:
1) To capture and retain a certain market share.
2) To obtain sales volume in ways that contributes to profitability.
3) To obtain some number of new accounts of given types.
4) To keep personal selling expenses with in set limits.
5) To secure targeted percentage of certain accounts business.
ref: sfa and sales management software
Saturday, November 17, 2007
Sales Management-Task Involved
According to the definition committee of the American Marketing Association Sales Management meant “The Planning, direction and control of personal selling including recruiting, selection equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal sales force”. Following are the important task involved in the success of sales management in any organizations:
1) Setting personal selling objectives.
2) Formulating sales policies.
3) Structuring the sales force.
4) Deciding the size of the sales force.
5) Designing sales territories.
6) Developing the sales territories.
7) Developing the sales forecasts and sales budgets.
8) Fixing sales targets for individual sales territories/salesman.
9) Creating the sales force
10) Managing the sales force
11) Managing the marketing channels.
12) Ensuring growth and developing new accounts.
13) Sales communication and reporting
14) Sales coordination and sales controlling including sales expense control.
15) Building the sales organization
16) Co-ordination with marketing management in the areas like, product mix, pricing, distribution, advertising and sales promotion.
17) Creating and maintaining right image for the company and its products in the market.
1) Setting personal selling objectives.
2) Formulating sales policies.
3) Structuring the sales force.
4) Deciding the size of the sales force.
5) Designing sales territories.
6) Developing the sales territories.
7) Developing the sales forecasts and sales budgets.
8) Fixing sales targets for individual sales territories/salesman.
9) Creating the sales force
10) Managing the sales force
11) Managing the marketing channels.
12) Ensuring growth and developing new accounts.
13) Sales communication and reporting
14) Sales coordination and sales controlling including sales expense control.
15) Building the sales organization
16) Co-ordination with marketing management in the areas like, product mix, pricing, distribution, advertising and sales promotion.
17) Creating and maintaining right image for the company and its products in the market.
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