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Chapter 1

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0% found this document useful (0 votes)
31 views22 pages

Chapter 1

Uploaded by

Ishan Maheshwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Sales & Distribution.

JYOTI PRAKASH SAHU

www.linkedin.com/in/jyotiprakashsahuconnect

JPS@LIGHTHOUSEPARTNERS.IN
JPS@ANAIYAH.COM
Sales & Distribution.

Text Book:

Sales Management: Decisions, Strategies and Cases,


5e, Richard R. Still, Edward W. Cundiff and Norman
A.P. Govoni, Pearson, 2011
Chapter 1

Sales Management and


the Business Enterprise

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Learning Objectives

• Understand the evolution of the sales department


• Understand the objectives of sales management
• Understand the roles of sales executives
• Know the importance of sales management and control

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Individual Assignment Class Work

You have been appointed Area Sales Manager of a


company selling FMCG products.

Write down the KRA’s (Key Result Areas) as a ASM.

No descriptive answers, only pointers.

Mention your Name & Roll Number.


INFORMATION LITERACY
• Information literacy is the ability to find, evaluate, organize,
use, and communicate information in all its various formats,
most notably in situations requiring decision making,
problem solving, or the acquisition of knowledge.

• Information literacy has five components:


1.Identify, 2.Find, 3.Evaluate, 4.Apply, and
5.Acknowledge sources of information.
INFORMATION LITERACY SKILLS

Information literacy refers to the ability to find, evaluate, and


use sources effectively.
The term covers a broad range of skills, including the ability to:
1.Navigate databases
2.Find credible sources
3.Cite sources correctly

1.Searching is an important skill because it allows you to find


the information you need quickly and efficiently. When you
know how to search, you can save time and energy by finding
the information you need the first time. Searching also allows
you to find a variety of information sources, which can be
helpful when you’re trying to get a well-rounded view of a topic.
INFORMATION LITERACY SKILLS
2.Research is an important Information Literacy skill because it
allows you to find accurate and up-to-date information. When you
are researching, you are looking for information that is relevant to
your topic. This means that you will need to evaluate the sources
you find to make sure that they are accurate and reliable. Being
able to do research effectively can help you in your work and in
your personal life. When you know how to find reliable
information, you are less likely to be misled by false information.
Learning how to do research can also help you save time.
3.Analyzing is the process of breaking down information into
smaller parts in order to better understand it. When you analyze
something, you’re looking at it critically and asking questions
about what you see. For example, you might analyze a data set to
find trends or patterns.
INFORMATION LITERACY SKILLS
4.Evaluating information sources is an important part of the
research process. Not all sources are created equal and it’s
important to be able to determine which sources are reliable,
accurate and up-to-date. When you’re evaluating a source, consider
the following:-Who is the author? -What are their qualifications? -
What is the purpose of the source? -Is the information objective or
biased? -Is the information current? -What are the other side’s
arguments?
Evaluating sources can help you determine if a source is reliable
and if the information is relevant to your research.
5.Citing is important because it shows where you got your
information. It also helps your reader find the same sources that
you used. When you don’t cite your sources, it’s called plagiarism.
Plagiarism is when you use someone else’s words or ideas without
giving them credit. Citing sources is a way to avoid plagiarism.
HOW TO IDENTIFY A RELIABLE AND CREDIBLE SOURCE?

If it doesn't pass the CRAAP test, do not use it as a source for your research.

Relevance = The
Currency = The importance of
timeliness of the information
information for your needs

Accuracy = The
Authority = The reliability,
source of the truthfulness and
information correctness of
the content

Purpose = The reason the


information exists
Publication Type- Popular Sources

Newspapers, Magazines etc.


Benefits → current events, popular opinions, local issues, broad overview of a topic
Drawbacks → not evaluated by experts, topical coverage of an issue

A popular publication will contain language easily understood by a general


audience. They are usually written by journalists or freelance writers and do
not undergo a formal review by experts before release. Popular publications
generally do not have full citations for information used to write the piece.
They tend to cover issues with relatively brief, broad overviews. Popular
publications can be a good place to learn the basic components of a topic, to
understand the varying viewpoints surrounding an issue, or to discover
potential angles to explore with deeper research. Often, popular publications
report on existing research or provide context to news stories that reflect the
general interest perspectives of an issue. Newspapers particularly are useful
for research on local issues that may not receive much, if any, coverage 1
1
outside of the region. Popular sources are great for current information
because their publication cycle is more frequent than scholarly sources.
Publication Type- Scholarly Works

Journal, Articles, Studies etc.


Benefits → good for academic topics that require expert study, critique, and analysis
Drawbacks → long, technical/scientific language, narrowly focused

Scholarly information is required for research assignments. Professors favor the


use of scholarly publications, found in academic journals or books, because they
are a highly credible source of information to cite. These publications typically
consist of original research and studies. Scholarly publications also contain expert
analysis on topics or issues. Many of them are peer-reviewed before publication.
Peer-reviewed means the work undergoes a series of reviews by other experts in
the field to ensure quality, credibility, and accuracy of the information.
Experts in a field write scholarly information for other experts or academics to
read and advance the knowledge of the field. The information can sometimes be
difficult to understand for non-experts. Scholarly publications often use technical
and scientific terminology and assume prior knowledge of the subject matter. In
addition, they tend to be longer and more in-depth than popular or trade
information and focus on specific aspects of an issue rather than a broad 1
overview. Virtually all scholarly publications include a bibliography, works cited,2
or reference list of sources consulted or cited by the authors.
Publication Type- Trade Publications

Specialized Trade Journals and Review reports etc.


Benefits → career/industry research, some are peer-reviewed, specialized
Drawbacks → some are not peer-reviewed, overly specialized

A trade publication falls outside of both scholarly and popular


information, though it may contain elements of both. Trade publications
share information between people within a specific industry in order to
improve their business or field and to keep up-to-date on market trends.
Trade publications can be very useful to research within a specific field.
Professionals or reporters in the industry write information aimed at
others working in the same field. The information shared in a trade
publication tends to be current and to include discussion of trends and
products that affect the direction of the field. Since these publications are
so specialized, they are likely to address a variety of issues, viewpoints,
and perspectives related to the subject matter. Most common trade
publications have good reputations with experts in the industry and
provide verifiable, trustworthy information. Some trade publications 1
undergo a peer-review process like scholarly information to ensure 3
accuracy and relevancy before publication.
Sales Management

According to 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 salesforce.

Sales management involves planning the selling program


and implementing and controlling the personal selling
effort of the firm.

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Personal Selling

• Personal selling involves a two-way flow of


communication between a buyer and seller, often in a
face-to-face encounter, designed to influence a person’s
or group’s purchase decision.
• Numerous tasks are involved in managing personal
selling including:
Setting objectives; Organizing the sales force;
Recruiting, selecting, training, and compensating
salespeople; and evaluating the performance of
individual salespeople.

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Objectives of Sales Management

• Achievement of targets/sales volume with required growth


• Contribution to profits
• Coordination with the distribution network
• Customer relationship management
• Market Leadership
• Motivate Salesforce
• Sales management aims for an optimum relationship among
the three factors it can directly affect: sales, gross margin,
and expenses.

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Critical Sales Management functions-
• Recruiting: You’re in charge of hiring and onboarding salespeople.

• Sales Plan formulation -Setting objectives, KPIs. Set objectives and key results (KPIs), for
the sales team and ensure goals are communicated clearly.

• Training: You’re responsible for ensuring your salespeople deliver the best possible
customer experience and meet their sales targets. This means identifying training gaps,
modeling good sales behaviors, training, coaching, and mentoring.

• Shadowing: To get to know your salespeople and their interactions with customers, you need
to be out in the field with them, on calls, and know how their behaviors map onto their results
on key performance indicators (KPIs).

• Forecasting and reporting(MIS): You need to report on sales performance while keeping an
eye on long-term growth projections—both can inform strategic decisions about the future
direction of your team and your company. SFA & CRM.
Critical Sales Management functions-
• Sales Promotion Strategy: Formulate and implement Sales Promotion programs to
support sales KPIs.

• Marketing Calendar Execution: Identify accounts/geographies to implement & execute


marketing calendar strategies adhering to marketing KPIs.

• Partner & Vendor Experience: Identify & Appoint planned


partners/vendors/distributors to support & execute sales process.

• Performance Management System: Expectation setting, Definition of success


parameters, Best & Next practice coaching. Appraisals, Performance review &
feedback.

• Rewards and Recognition: Identify High performers for motivation, rewards, incentives
& recognition .
Types of sales management
•B2C sales management: Business-to-consumer (B2C) sales involve selling goods
and services directly to consumers. B2C sales often drive leads from aggressive
marketing strategies.
•B2B sales management:Business-to-business (B2B) sales involve selling goods and
services directly to other businesses. B2B sales tend to involve higher value products
with longer sales cycles.
•Enterprise sales management: Enterprise sales involve selling complex goods or
services directly to large companies. Companies that sell enterprise solutions may
have multiple teams for different aspects of the sale, such as sales engineers
and inside and outside sales teams.
•SaaS sales management: Software as a service (SaaS) companies sell software or
applications over the web, usually by subscription. SaaS products are often sold by
an inside team who contacts potential customers by phone or email and close the deal
remotely.
Common Sales
Performance Criteria
• Total sales volume and increase over last year
• Percentage of target achieved
• Selling expenses and decrease versus last year
• Profitability of sales and increase over last year
• New accounts generated
• Improvement in performance of administrative duties
• Improvement in service provided customers
• Submission of different reports

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Sales Management and Control
• Sizing up the situation
• Setting quantitative performance standards
• Gathering and processing data on actual performance
• Evaluating performance
• Action to correct controllable variation
• Adjusting for uncontrollable variation

Copyright © 2018 Pearson India Education Services Pvt. Ltd


Sales Control
• Informal control
• Formal control and written sales policies
• Policy formulation and review
• Formal control over sales volume
• Budgetary control

Copyright © 2018 Pearson India Education Services Pvt. Ltd

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