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Prof. Seema Menon
Email: [email protected]
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` Sales Management- is the attainment of salesforce goals in an effective and efficient manner
through planning, staffing, training, leading, and
controlling organisational resources
` Managing a sales force involves recruiting, hiring,training, supervising, compensating salespeople,
motivating them to become
problem solvers, and providing the proper
planning and backup support so they can performtheir jobs properly.
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OrganisationSales
Managers
Personal Sales
RepresentativesCustomer
Value
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` Sales
` Revenues
` Profits
` Market Share
` Controlling internal costs
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` Estimate the market potential
` Planning for sales
` Recruiting the sales force
` Training the sales force
` Motivating the sales force
` Supervising the sales force
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SalesManager
Personal
Sales
Reps
Estimating the
market potential
Planning
Recruiting
Training
Motivating
Supervising
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` Estimating the potential of a market is very important for a company planning
to enter a new market.
` This is a process where an organisation estimates the attractiveness of the
market for selling its products or services.
` Before venturing into a market and investing huge sums of money, it is very
important to asses it in order to avoid irrecoverable losses.
` Besides studying the broad market factors such as the size of the population,
GDP and the spending capacity of the market, firms should also analyse
market specific factors such as customers tastes and preferences, the cultural
factors prevailing, their willingness to buy the products and so on.
` Data regarding customer and market specific factors can be obtained through
primary and secondary sources.
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Planning-is the conscious, systemic process of
making decisions about goals and activities
that an individual, group, work unit, or
organisation will pursue in the future and the
use of resources needed to attain them.
Key areas include:` Automation
` Forecasting
` Financial Planning
` Quotas
` Time & territory
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`Automation
Hardware: Computers,
Printers, Copiers,Phones, etc
Software: What type of software does the
sales force require?
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` Estimating the future sales of the company in a
given market is called sales forecasting
` Over the years, the importance of sales forecastinghas been on the rise across the world
` Apart from the mathematical models developed
earlier, many new software tools have emerged for
forecasting sales in a better fashion.
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` Forecasting can be classified into qualitative forecasting and
quantitative forecasting.
` The methods used in qualitative forecasting are
user expectations, sales force composite,
jury of executive opinion,
Delphi technique
market test.
` The methods used in quantitative forecasting are: Time series approach
Explanatory approach
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` The method of sales forecasting is selected on the basis of factors such as:
accuracy,
available time,
costs,
pattern of data,
experience of the company
requirements of the software.
` For effective forecasting, certain criteria in terms of:
accuracy,
plausibility,
durability,
flexibility,
availability of statistical indexes,
organisational participation
and demand patterns, should be met.
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` Sales forecasting faces several difficulties such as:
lack of adequate sales history,
lack of time,
money and qualified personnel.
changing customer attitudes,
changing fashions and fads also act as hurdles to
effective forecasting.
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` Budgeting
Salespeople expenses
Administrative expenses
Other selling expenses Communication expenses
` Profit objectives
Break-even analysis
Controlling the budget
Selling the budget to top management
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` Sales quota- the specific sales or profit objective asalesperson is expected to achieve
INR sales
Unit volume
Margin
Selling effort
Product type
` Other types of quotas Expense quotas
Profit quotas
Activity quotas
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` Optimum time must be spent with those prospectswith the greatest potential
` Territory management involves:
Identification and classification of prospects
Analysis and development of the salespeoples work loads
How many salespeople will the territory support
Territorys boundaries Optimum way to travel from one prospect to the next