Sales Management and Marketing Management- JIMS India, Delhi

Sales and

Marketing

Management

Jagan Institute of Management Studies Visit Us @ http://www.jimsindia.org/

http://www.jimsindia.org/


Is marketing & selling synonymous?




Is marketing & selling synonymous?

The task of a sales manager is to increase sales, the task that

confronts a marketing manager is to increase

profits.




Difference between Selling & Marketing

SELLING MARKETING

Emphasis on product Emphasis on consumer needs and wants

Company manufactures the product first and then decides to sell it

Company first determines customer needs and wants and then decides how to deliver a product to satisfy these wants

Management is sales volume oriented

Management is profit oriented

Planning is short-term oriented in terms of today’s products and markets

Planning is long-term oriented in terms of new products, tomorrow’s products and future products

Stresses needs of a seller Stresses needs and wants of a buyer

Views business as a goods producing process

Views business as a consumer satisfying process




SELLING MARKETING

Emphasis on staying with existing technology and reducing cost

Emphasis on innovation in every sphere, on providing better value to customers by adopting a superior technology

Different departments work as highly separate watertight compartments

All departments of a business operate in an integrated manner, the sole purpose being generation of consumer satisfaction

Cost determines price Consumers determine price, price determines cost

Selling views customers as the last link in business

Marketing views the customers as the very beginning of a business

Difference between Selling & MarketingCon..




Starting

PointMarketFactory

The Selling Concept

The Marketing Concept




Starting Point

MarketFactory

Focus Customer needs

Factory

The Selling Concept





Starting Point

MarketFactory


Factory

Means Coordinated marketing

Selling &

promoting

The Selling Concept





Starting Point

MarketFactory


Factory

Means Coordinated marketing

Selling & promoting

EndsProfits

through customer

satisfaction

Profits through

sales volume

The Selling Concept





When We Are Marketing, We Are:

1. Deciding what products we are going to sell2. Determining the prices at which we are going

to sell3. Deciding whom we are going to sell4. Estimating the likely result of the profit




Marketing and sales are inseparable functions. Both are complementary to each other. Sales function cannot exist in a vacuum. It acts as a feedback for marketing personnel. The actual test of a product in terms of quality, attributes, expectation, price worthiness ….

When We Are Marketing, We Are:Con…

1. Deciding what products we are going to sell2. Determining the prices at which we are going

to sell3. Deciding whom we are going to sell4. Estimating the likely result of the profit




D

1

Quantity’000

Price (Rs)

D

432

If demand determines the upper threshold for price, then costs determine the

lower one

The Demand Curve




Profits

Loss

Sales Revenue

Fixed Costs (a)

Variable Costs (b)

Total Costs (a+b )

Break-even Point

Output

Sales Revenue

CostSales managers must understand different

costing concepts

A Simple Break-even Chart

Women’s PERFUME – THE AMOUNT OF IMPORTANCE (NOT Rs.)

Product: 15%

Price: 15%

Place: 25%

Promotion: 40%

Service: 5%

Area where substantial

improvements and cost savings can be

made

Objective 2 Objective 3

Hierarchy Of The Marketing Plan

Objective 1






Objective 1

Strategy A Strategy B Strategy C




Tactic A1


Tactic A2 Tactic A3


Objective 1





• Objectives: Where we intend to go? (specific & quantitative benchmark)

• Strategies: How do we intend to go? (Broadly descriptive)

• Tactics: The precise route to be taken (detailed)


Tactic A1


Tactic A2 Tactic A3

Objective 1


1

Philosophy

1. Company Objective

2. Business

Goals

1. Corporate Mission

Marketing Strategy System




1

Philosophy


2. Business Goals

1. Corporate

Mission1.

Opportunity

2. Threat

3. Strength

4. Weakness

Business opportunit

yOpportunity/ problem

2

Marketing Strategy SystemCon..




1

Philosophy


2. Business Goals

1. Corporate

Mission1.

Opportunity

2. Threat

3. Strength

4. Weakness

Business opportunit


2 3

Target marketMarket

segmentation

1. Where (Target Area)

2. Who (Target

Customer)

3. What Needs (Target Needs)





1

Philosophy


2. Business Goals

1. Corporate

Mission1.

Opportunity

2. Threat

3. Strength

4. Weakness

Business opportunit


2 3

Target marketMarket

segmentation


2. Who (Target

Customer)


4

Marketing Target Sales Target

1. What (Product)

2. How Much (Qty./

Amt.)

3. Until When (Time

Limit)





1

Philosophy


2. Business Goals

1. Corporate

Mission1.

Opportunity

2. Threat

3. Strength

4. Weakness

Business opportunit


2 3

Target marketMarket

segmentation


2. Who (Target

Customer)


4


1. What (Product)

2. How Much (Qty./

Amt.)

3. Until When (Time

Limit)

5

Marketing Mix

differentiation

strategy

1. Product Service

2. Price

3. Channel

3. Promotion by•Salesman•Sales Promotion•Advertisement•Publicity





1

Philosophy


2. Business Goals

1. Corporate

Mission1.

Opportunity

2. Threat

3. Strength

4. Weakness

Business opportunit


2 3

Target marketMarket

segmentation


2. Who (Target

Customer)


4


1. What (Product)

2. How Much (Qty./

Amt.)

3. Until When (Time

Limit)

5

Marketing Mix

differentiation

strategy

1. Product Service

2. Price

3. Channel

6

Action Program practical measures to achieve

target

1. Means

2. Ways

3. Budget3. Promotion by•Salesman•Sales Promotion•Advertisement•Publicity

4. Share of Role

5. Action Schedule


Strategic Marketing Objective

Sales Objective Sales Strategy

Build 1. Build sales volume2. Increase distribution3. Provide high service

levels

1. High call rates on existing accounts

2. High focus during calls3. Call on new accounts

(prospecting)

Hold 1. Maintain sales volume

2. Maintain distribution3. Maintain service

levels

1. Continue current call rates on current accounts

2. Medium focus during calls3. Call on new outlets when they

appear

Harvest 1. Reduce selling costsTarget profitable accounts

2. Reduce service costs and inventories

1. Call only of profitable accounts2. Consider telemarketing or

dropping the rest3. No prospecting

Divest 1. Clear inventory quickly

1. Quantity discount to targeted accounts

Marketing Strategy & Sales Management

The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s approach includes:• Maintaining good customer relations• Managing profitability of a firm• Managing customer complaints• Building brand value in the eyes of the

customer

The Nature And Role Of Sales Management




The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s approach includes:• Maintaining good customer relations• Managing profitability of a firm• Managing customer complaints• Building brand value in the eyes of the customer

Best marketing programs can fail if sales staff is ineffective or improperly managed.For customers sales staff represents the face of the company and impressions determine future business relations.





The basic function and role of selling is to generate sales and earn revenue for an organization. Today’s approach includes:• Maintaining good customer relations• Managing profitability of a firm• Managing customer complaints• Building brand value in the eyes of the customer

Best marketing programs can fail if sales staff is ineffective or improperly managed.For customers sales staff represents the face of the company and impressions determine future business relations.

Functions of a sales manager are classified into:1. Personnel selling – Individual or team to establish

and build a profitable relationship over time through multiple transactions

2. Sales management – Planning, organizing, directing and controlling all sales activities


Referred to as:• Directional• Managerial• Functional structure• Lines of authority & responsibility

Organization For MarketingCon..

Referred to as:• Directional• Managerial• Functional structure• Lines of authority & responsibility

Factors for consideration are:1. Will the need for a decision be recognized and given

adequate consideration by the appropriate members of the organization?

2. Will there be sufficient time for the decision making process?

3. Whether the necessary data on existing and alternative courses of actions are available and utilized?

4. Will the skills, knowledge and potential of the organizational members be used to maximize their contribution to the decision making process?

Organization For Marketing

Production

Managing Director

Sales Marketing Finance H.R Managem

ent

Sales Oriented Company

Organisational Implications Of Adopting The Sales Concept

Production

Managing Director

Sales Marketing Finance H.R Managem

entField Sales Force

Sales Office Administratio

n

Advertising

Market Research

Publicity

Sales Oriented Company

Organisational Implications Of Adopting The Sales Concept

Production Marketing Finance H.R Managem

ent

Market-oriented Company

Organisational Implications Of Adopting The Marketing

ConceptManaging Director

Production

Sales

Marketing Finance H.R Managem

ent

Field Sales Force

Sales Office Administratio

n

Advertising

Market Research

PublicityMarket-oriented

Company

Publicity

Organisational Implications Of Adopting The Marketing

ConceptManaging Director

Sales promotion

National Sales Manager

Example Of A Sales Organization Structure





Regional Sales Managers






Regional Sales Managers

District Sales Manager





• Determining sales force objectives and goals• Finalizing sales force organization, size, territory,

and quota• Forecasting and budgeting sales• Selecting, recruiting, and training of the sales force• Motivating and leading the sales force• Designing compensation plan and control systems• Designing career growth plans and building

relationship strategies with key customers

Duties And Responsibilities ofA Sales Manager




Describing The Personnel Selling Function

Sales Management Model





Defining The Strategic Role In Personal Selling







Designing The Sales Organisation








Developing The Sales Force









Directing The Sales Force









Directing The Sales Force

Determining Sales Force Effectiveness & Performance





Managing Director

Marketing Organisation Structure

ProductionDirector

FinancialDirector

MarketingDirector

Human ResourceDirector




Managing Director


ProductionDirector

FinancialDirector

MarketingDirector


General Sales Manager

Marketing Manager




Managing Director


ProductionDirector

FinancialDirector

MarketingDirector


•Field Sales Force•Customer Service•Product Service

General Sales Manager

Marketing Manager

•Market Research•Product Planning•Sales forecasting•Production Scheduling•Sales Budgeting•Pricing•Advertising•Stock Control•Credit Control




•Engineering•Production R & D•Design•Market Research•Finance•Purchasing•Credit Control •Advertising•Sales Promotion•Physical Distribution•Sales•Customer Servicing•Product Servicing•Dealer Training•Etc. Etc

Marketing

Organisation Structures

Customer Oriented Managing Director

An Organization Structure Of A 2-wheeler Company

GM Marketing

GM Sales

GMService

GMCommercia

l

GM(Spare

s)

Director Marketing




Advertising

Retailing

Network Developme

ntSales Mgmt.

Statistics

Credit Control

Pricing

Market Research

Goods Movement

Branches (12)

Rural Marketing


GM Marketing

GM Sales

GMService

GMCommercia

l

GM(Spare

s)

Director Marketing




Advertising

Retailing

Network Developme

ntSales Mgmt.

Statistics

Credit Control

Pricing

Market Research

Goods Movement

Branches (12)

Branch Manager

Rural Marketing

Area Mgr.

Comm. Asst.Service Engg.Depot

InchargeSpare Part

I/C


GM Marketing

GM Sales

GMService

GMCommercia

l

GM(Spare

s)

Director Marketing

• Creating a dealer network• Preparation of annual Dealer Network

Development (DNM) plan• Appointment of dealer network• Categorization of the dealers• Initial support to new dealers• Dealer productivity norms• Termination of dealers

Distribution – Its Role & Importance




Sales and Distribution Management – Tapan Panda, & Sunil Sahdev (Oxford), TPSS – Text book

Sales & Distribution Management –Dr Matin Khan, Excel Books(Rs.200/-)

Marketing Channels – Coughlan, Anderson, Stern, El-Ansary 7th. Edition, Pearson

Marketing Channels ( A Management View) - Bert Rosenbloom, The Drydon Press

ABC's of Selling - Charles Futrell Sales Management: Decisions Strategies and Cases - Still,

Richard R Gupta, S.L. Sales and Distribution Management Rampal, M.K., Gupta, S.L. Cases and Simulations in

Marketing Management

Books And References




Visit Us @ http://www.jimsindia.org/



Date post:	22-Nov-2014
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Sales Management and Marketing Management- JIMS India, Delhi

Education