Chapter One

Introduction to Selling and Sales Management

1-1. Sales Management Definition
Sales management is a business discipline which is focused on the practical application of sales
techniques and the management of a firm's sales operations. Sales management is the process of
developing a sales force, coordinating sales operations, and implementing sales techniques that
allow a business to consistently hit, and even surpass, its sales targets.
Sales management is the coordination of people and resources to effectively produce the desired
goal. These long term goals can be wide ranging, however they are generally increased sales
volume, contribution to profits, and continuous growth. To achieve these objectives, sales
managers have vast responsibilities including, but not limited to: demand/sales forecasting,
establishing quotas/objectives, budgeting, organization, recruitment, training, compensation, and
sales performance evaluation.
Sales management is just one facet of a company's overall marketing mix, which encompasses
strategies related to the "four Ps": products, pricing, promotion, and place (distribution).
Although the role of sales managers is multidisciplinary in scope, their primary responsibilities
are: 1) setting goals for a sales force; 2) planning, budgeting, and organizing a program to
achieve those goals; 3) implementing the program; and 4) controlling and evaluating the results.
Even when a sales force is already in place, the sales manager will likely view these
responsibilities as an ongoing process necessary to adapt to both internal and external changes.
1-2. Personal Selling Vs Salesmanship
Personal Selling: refers to oral face to face interaction or conversation between a sales
representative and prospective customer for the purpose of making sales. As a marketing
communication tool, Personal Selling is more effective in the trial stage of the purchase process.
Of course, it has to be ideally supported by the other components of promotion such as sales
promotion and advertising. Personal selling involves direct and personal interaction of the seller
with the buyer. Personal selling is basically the oral/face to face conversation between a sales
representative and a prospect for the purpose of closing a deal.
Salesmanship: Salesman is persuading and winning the buyer’s confidence. Misrepresentation,
cheating, dishonesty have no place in modern salesmanship, but it aims at winning the
confidence of the buyer by providing a solution to the buyers problems, by persuading and
educating the buyers. Salesman performs the function of educating the customers about their
needs and their satisfaction. They also provide information about the products available, their
special features, and their utility in satisfying specific needs of customers.
The modern concept of salesmanship is based on the idea of service. Modern salesmanship is
creative in approach. Modern salesmanship tries to create need, awareness of these needs and
uses resourcefulness and imagination to persuade customers. It uses problem solving approach to
ensure customer satisfaction.
Salesmanship involves personal selling with the variant roles played by the seller to make a sale.
Salesmanship is a skill used in personal selling. In salesmanship the face to face interaction of
seller and buyer is made more qualitative to make sure that the buyer needs are successfully
fulfilled. Under salesmanship the seller has to play multiple roles for convincing the buyer to
make a sale.
Difference between Personal Selling and Salesmanship
S.N Personal Selling Salesmanship
1 Personal selling is a broader concept Salesmanship is just one aspect of personal
than salesmanship selling
2 Personal selling is an important It is a seller-initiated effort that provides buyers
ingredient of promotional mix, which is with information and other benefits.
a part of marketing mix. Salesmanship is a skill used in personal selling.
3 It involves processes like interaction of Salesmanship is the process of persuading a
the seller with the buyer to understand person to buy goods or services.
needs and wants of buyer.
4 the personal communication of Salesmanship is the art of selling.
information to persuade a prospective
customer to buy something
1-3. How Does One Become a Sales Manager?
Becoming a sales manager won’t be easy, but as long as you have the passion and the right
personality, it’s definitely possible. Follow these eight tips and you’ll put yourself in a great
position to transition from seller to leader.
1. Update Your Credentials
First things first, make sure that you meet all the necessary requirements for the job you hope to
obtain. Many companies expect their sales managers to have a certain level of education; usually
a bachelor’s degree or more. While having a degree doesn’t prove that you’ll make a good leader
in itself, it does suggest that you’re well-rounded and have the aptitude necessary to handle a
leadership position.
2. Understand What Makes an Effective Salesperson
This may seem elementary, but it’s absolutely critical. You need to have a concrete
understanding of what makes a great salesperson because it will be your responsibility to support
and train them. Knowing how to identify common success traits in other sales reps means you’ll
be able to build an effective team faster. Remember, if you become a sales manager, you’ll be
responsible for both hiring new employees and developing the folks already on your sales team.
A deep understanding of quality salesmanship and what it takes to sell at a high level will serve
you well.
3. Take on More Responsibility
If you currently hold a sales development role, you can show that you’re cut out for sales
management and can shoulder more responsibility by actively seeking out new tasks. Constantly
look for new ways to contribute and help your company beyond what your job description
requires you to do. Another idea is to organize a department-wide training event. Even small
things like offering to write for the company blog will show company leaders that you’re a go-
getter and give you a chance to display your expertise—and they’ll certainly look good on a
resume.
4. Know How to Be a Team Player
Sales are inherently competitive. Who will sell the most and snag the top spot on the company’s
leaderboard? Many sales professionals take pride in their work and want to earn that title, which
keeps them motivated to do well.
Since you’re set on becoming a manager, we’re assuming you’re a go-getter and are no stranger
to healthy competition. But to secure a leadership role, you need to operate with care.
Remember, should you ever head up the sales team; you may have to lead the people you’re
currently competing against.
5. Accept Constructive Criticism
On your quest to become a sales manager, you need to learn how to treat every day as a learning
experience. If you’re able to accept constructive criticism and act on it, you’ll grow faster. You’ll
also prove to upper management that you can be reasoned with, that you’re not too proud to take
suggestions, and that you’re someone they can easily work with.
6. Study Current Sales Managers
One of the best ways to learn how to do anything is to simply watch those who are already doing
it well. Since you want to learn how to become a sales manager, be sure to study the most
successful managers at your company.
Why are they so successful? How do they relate to their team and motivate them to greatness?
Do they have systems in place that you can adopt and use once you become a sales manager too?
Do what you can to glean from their expertise. (You could even do some outreach on LinkedIn
to find other sales managers in your area who are leading large, successful teams, and offer to
buy them coffee for a few minutes of their insight.)
7. Network, Network, Network!
While most of this article has focused on how to become a sales manager at your current
organization, don’t immediately write off the opportunity to advance your career at a different
company. If the business you’re at now isn’t ready to hire a new sales manager or refuses to see
the value you bring to the table, there’s no reason you can’t look elsewhere.
To seek out new opportunities, join business networking groups in your area and make new
connections through online business forums. Use the tools at your disposal to meet decision-
makers at other companies and put yourself on the radar of more people. One of them might be
your ticket to the promotion you seek.
8. Ask for the Job!
And finally, when you’re ready, take the leap and ask for the job. We understand if you’re
hesitant to do this. Putting yourself out there can be terrifying. But if you want to become a sales
manager, eventually you’ll need to approach the decision-makers in your company and ask them
for the position. Remember, you’re prepared and qualified for this! If you’ve followed our
previous tips then your credentials have been updated, you understand what it takes to be a great
salesperson, you’ve been taking on more responsibility, and you’ve proved your abilities. You’re
ready for this.
1-4. The Five Functions of Sales Managers
Planning: a business cannot be taken as a chance. Every salespeople or person concerned have to
see for the future, in a planned way like what must be done? And who will do it? The plan must
be based on extensive market research, and the facts must be verified at every stage. The plan
should also be evaluated, after investigating the total-market, for a particular type of product.
Flexibility must be provided by establishing a specialist’s production line, to allow for variation
in production. The plan should also be subject to continued review. The details of the plan should
be discussed, with all the departmental heads, concerned, and their sub-ordinates, who bear
responsibility for fulfilling their parts of the plan.

There are four major branches (all interrelated) in

successful sales management:

1) Top Level Policy Planning, which establishes a framework of

policy within which the sales objectives of a company or institution
may be achieved, depending on an individual company’s particular
situation,

(2) Line and Staff Operational Planning, through which procedures

are established in advance, against which the quality and quantity
of work may be controlled,

(3) Organization, the setting up of a structure of responsibilities and

normal interrelations—charting the organization, assigning
responsibility, delegating authority, tracing accountability, and
clarifying the character of collaboration, and

(4) Administration, by which management meets planned objectives

through guidance and evaluation of activity, including Sales
Training, Motivation, Coordination, and Execution.
ELEMENTS OF SALES MANAGEMENT

There are the four basic elements of sales management, discussed below:

(2) Co-ordination: Co-ordination is all pervasive and permeates every function of the
management-process. For example, ill planning, departmental-plans are integrated into a master.
Plan, ensuring adequate co-ordination. Similarly, organising starts by co-ordination wholly,
partially inter-departmental and inter-personnel matters. Co-ordination also helps in maximum
utilisation of human-effort by the exercise of effective leadership, guidance, motivation,
supervision, communication etc. The control-system also needs coordination. Co-ordination does
not have any special techniques. Nevertheless, there are sound principles, on which to develop
skills. It has a special need to help the staff, to see the total picture and co-ordinate their
activities, with the rest of the team. The sales manager has to encourage direct personal-contact,
within the organisation, particularly where there is lateral-leadership. Harmony, and not discord,
should be the guiding mantra. In addition, one has to ensure free flow of information that is
selective to the objectives of the business. No personal problems, arising from
businessoperations are to be ignored, but solved through a freeexchange of ideas. This is
especially true in the case of the sales-force of any organisation.

(3) Controlling: the sales manager has to check regularly, that the sales activities are moving in
the right direction or not. He guides, leads, and motivates the subordinates, so as to achieve the
goals planned for the business. He has to take steps to ensure that the activities of the people
conform to the plans and objectives of the organisation. The controlling system should be such
that one can study the past, note the pitfalls and take corrective measures, so that similar
problems may not occur in the future. The controller has to ensure that the set targets, budgets
and schedules are attained or followed in letter and spirit. There must be procedures to bring to
light the failure to attain a target. The control-system has to (i) prepare sales and market
forecasts; (ii) determine the level of sales-budget; (iii) determine the sales-quotas for each
salesman; (iv) determine, review and select distribution-channels; (v) organise an efficient sales
force; (vi) establish a system of sales-reporting; (vii) establish a system of statistical sales-credit;
(viii) establish stockcontrol system(s); (ix) review of performance of the salesforce; and (x)
establish periodical testing programmes. In a big organisation, each salesman is assigned a
territory (not so big that it cannot be adequately covered). Each salesman has a target, set for
specific ‘period. From the weekly and monthly sales-reports, the control system is established,
that will prepare records whether a particular salesman is working efficiently or not.

(4) Motivating: Motivation is essentially a human resource concept. It aims to weld together
distinctive personalities into an efficient team. For this, knowledge of human psychology is
needed, as a means of understanding behaviour patterns. This is especially important in the case
of the sales-force. Only motivated sales-persons can achieve company’s goals.

OBJECTIVES OF SALES MANAGEMENT

Every business firm has certain objectives to achieve. These objectives may be very explicit and
definitive, or they may be implicit or general. Although, firms have different mixes of objectives,
and they do place differing emphasis, on individual ones, the typical objectives include (i)
profitability, (ii) sales-volume, (iii) market share, (iv) growth, and (v) corporate-image. While all
these objectives are important to a business firm, the objectives, relating to sales-volume, market
share and profitability, are greatly affected by the effectiveness and efficiency, with which the
sales-function is managed. Business firms, have, in fact, found that it is the most effective
management objective of the firm; that must emanate out of its overall business or corporate
objectives. The sales-management objectives of a business firm, generally relate to the areas of
(i) achieving sufficient sales-volume, (ii) providing sufficient profit, and (iii) experiencing
continuing growth. Generally, objectives of sales-management have to cover various sales-
functions, in an integrated manner. These objectives are to be expressed, as far as possible, in
measurable and quantitative terms, and should also be realistic and achievable. Since, there are
more than one objective, these should be put, on a hierarchical manner (mostimportant, down to
the least important). To ensure their flawless realisation, they must be congruent, i.e., they must
fit together, and not be in conflict with each other. For example, suppose you ask a salesman to
cut his travelling expenses, and ask him to spend more time, in the field. To make these two
requirements, more meaningful, they must be linked with specific time-element. The setting of
objectives should not be based only on the judgment of the top-management. Rather, it should be
formulated and finalised, with the involvement of the sales-force, at the grass-roots level. In
addition, the process of setting of sales-objectives should begin, only after the company has
conducted benchmark studies, to find out, as to where it stands in terms of product, brand and
market-sales and market share trends (all in measurable terms).

1.7 ORGANISATION OF SELLING UNIT

The main objective of any business firm is to sell effectively its goods and services to the
consumer at reasonable prices. So long as the business undertaking operates on a small-scale; the
proprietor can handle himself, or with the help of a few salesmen, under his directcontrol and
supervision. But, as the business grows and expands, the size of the target market, to be covered
to sell large quantities of goods and services becomes too large to be controlled by the owner of
the business firm, personally. Therefore, these activities arises the need of a sales-organisation.
Generally, an organisation is a structured-process in which individuals interact with each other
for achieving stated-objectives. It is a social and dynamic system. It emphasises human-values. It
is the job of management, to integrate and co-ordinate all its constituents.

1.7.1 Need and Importance

The sales organisation is required for the following purposes: (i) To enable the top-management,
to devote to more time in policy making for the growth and expansion of business. (ii) To divide
and fix authority among the sub-ordinates so that they may shirk work. (iii) To avoid repetition
of duties and functions so that there may not be any confusion among them. (iv) To locate
responsibility of each and every employee so that they can complete the whole work in stipulated
time; if not then the particular person must be responsible. (v) To establish the sales-routine in
the business unit. (vi) To stimulate sales-effort. (vii) To enforce proper supervision of sales-
force.

(viii) To integrate the individual in the organisation. Business organisations consist of an input, a
processing-unit, an output and a feedback-loop; with its own environment Organisation as an
open-ended social and dynamic system. Feedback-loop, provides control mechanism. Input is
drawn from the environment. It gives output to satisfy the needs of environment, which the
process itself transfers, input to output through its operators. In this approach, the main emphasis
is on human-values. Workers are not simply cogs in the machinery they are social beings first.
They are the key players of the production-system; and the management has to recognise this
fact, that each person is unique. This makes an organisation, in the present-day context, quite
complex.

1.7.2 Functions of Sale Organisation

A sales organisation performs the following functions: (i) Analysis of markets thoroughly,
including products and market research. (ii) Adoption of sound and defensible sales-policy. (iii)
Accurate market or sales forecasting and planning the salescampaign, based on relevant data or
information supplied by the marketing research staff. (iv) Deciding about prices of the goods and
services; terms of sales and pricing policies to be implemented in the potential and existing
markets.

(v) Labelling, Packaging and packing, for the consumer, who wants a container, which will
satisfy his desire for attractive appearance; keeping qualities, utility, quantity, and correct price
and many other factors in view. (vi) Branding or naming the product(s) and/or services to
differentiate them from the competitors and to recognise easily by the customer. (vii) Deciding
the channels of distribution for easy accessibility and timely delivery of the products and
services. (viii) Selection, training and control of salesmen, and fixing their remuneration to run
the business operations efficiently and effectively. (ix) Allocation of territory, and quota setting
for effective Selling and to fix the responsibility to the concern person. (x) Sales-programmes
and sales-promotion-activities prepared so that every sales activity may be completed in a
planned manner (xi) Arranging for advertising and publicity to inform the customer about the
new products and services and their multiple uses. (xii) Order-preparation and office-recording
to know the profitability of the business and to evaluate the performance of the employees.

(xiii) Preparation of customer s record-card to the customer loyalty about the products. (xiv)
Scrutiny and recording of reports to compare the other competitors and to compare with the past
period. (xv) Study of statistical-records and reports for comparative analyses in terms of sales,
etc. (xvi) Maintenance of salesman’s records to know their efficiency and to develop them.

1.7.3 Structure of Sales Organisation

The structure of sales organisation differs from company to company. There may be a very small
and simple one with only a few salesmen. At the other extreme, there may be quite complex,
with many sub-organisations, based upon divisions, according to territory, product and
marketing-functions. The structure of the sales-organisation, usually depends upon the following
factors: (i) Nature and size of the firm. (ii) Methods of distribution, adopted by the firm. (iii)
Selling-policies of the firm. (iv) Financial conditions of the firm. (v) Personality of the sales
manager.

The other dimension of the sales-organisation-structure, is related to

(i) What shall be the status of the sales manager? (ii) What functions shall his department
perform? (iii) What shall be the strength of the department? etc. These are many issues, which,
besides being based on the factors, listed in the procedure shall depend upon the state of the
acceptance of the modem marketing concept, within the organisation, and the extent to which, it
is found to permeate within it. We have some firms in India, where the sales manager is the head
of total marketing and salesoperations of the company; others where the head of the sales-
operations of the company, is a functional director of the company’s board of directors, and
responsible for total sales-operations of the company. Further, to carry out the functions of the
sales-organisation successfully, the sales department is divided into sub-departments. Each sub-
department is put under an officer, who is responsible to the salesmanager, who is the head or
chief executive officer (CEO) of the company. For example, in the case of a big business firm,
these sub-departments could be (i) market-research, (ii) advertising, (iii) sales-promotion, (iv)
recruitment and training, (v) credit and collection, (vi) sales-office for receiving the orders and
arranging to dispatch goods to their destinations.

1.7.4 Steps to establish a sales structure

The following procedure may be adopted to, establish a practical and viable sales-organisational
structure:

(i) Begin with a historical profile of the company’s allegiance, overall organisation and top-
management philosophy of the firm. (ii) Analyse the requirements of the company and the
salesdepartment, particularly in terms of its: size, position in the market, nature of activities,
product mix, nature of customers, state of competition, and sales-people and their ambitions. (iii)
Appraise the potential of the company, in terms of its impact on the financial, technical,
scientific and human resources, existing currently. (iv) Analyse the prevailing working-
atmosphere and state of communications, especially from the view-point of relationship and
human-feelings involved in such relationships. (v) List the various administrative-details,
connected with the company. (vi) Prepare a note, relating to the various administrative-details
including aspects like hierarchy, span of control, etc. on the sales-department, and overall
organisation of the department. (vii) Describe the procedures and Processes to be followed for
executing various tasks.

(viii) Based on the above, prepare a draft-structure of the salesdepartment, giving job-
descriptions of the whole of the department, and a who’s who of the department. (ix) Examine
the structure, from the point of view of viability and practicality. In the light of the complexities
and vastness of the above process, for creating a sales structure, once again, we state that various
industries, though being equally efficient, and of the same category, organise their sales-
departments, in different ways.