Sales Management

Sales is EVERYWHERE
Agenda
01 Nature & Objectives of
Sales Management

02 Establishing a Sales Force

03 Setting Goals &

Performance Measures

04 Management by Objectives
BUY
What is Sales?

A transaction between the buyer

and the seller in which the seller
sells intangible or tangible goods,
assets, or services against money
is known as a sales.

SELL
 Sales Management

Buyer Seller

Sales management is the process of hiring, training and motivating sales staff, coordinating operations across the sales department and
implementing a cohesive sales strategy that drives business revenues. Sales are the lifeblood of any organisation and managing the sales
process is one of the most important functions of any business.
 Nature of Sales Management
Continuous Process
The sales manager needs to perform sales management .
1 Goal Oriented
Similar to other management activities, sales management

2
functions regularly, and this process is never-ending. have a specific purpose and intended for the achievement o
specified goals or objectives.

3
Relationship Selling Systematic Approach
It is an organized way of handling the sales function of the
The salespeople make efforts to build a strong customer
company where every problem has a defined and proven

4
relationship to sell the products or services effectively.
solution.

Different Sales or Job Position

5
Marketing Management Integration

6
It is the combined efforts of the whole sales team, including Marketing is a broader concept; marketing management inc
salesperson, sales executive, sales head, sales manager and all the activities related to sales management.
after-sales service personnel.
Importance of Sales
Management
Sales Force
 What is Sales Force
One of the key components of the promotion mix is personal selling.
Through this sales method, companies try to establish direct contact
with customers. The focus is on cultivating strong customer relations
through interpersonal interaction and engagement. The people, who
are the protagonist of this process, make a team we know as the sales
force.

$ $ $ $ $ $ $ A company's sales force comprises employees who engage,

convince, and sell the products or services to the customers.

BUY SELL

$ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $

It will not be wrong to say that the sales force is like the eyes and ears of a company as they get in direct contact with
the customers. They know the pulse of customers and could assist the companies to adjust their offerings accordingly.
They listen to customer's problems and offer possible solutions. The sales force's job is to make a complex buying
process a lot easier for the customers.
 Developing Sales Force

1. Define Sales Objectives and Strategy 2. Organizational Structure

. Determine Structure: Decide on the best organizational
Set Clear Goals: Establish specific, measurable,
achievable, relevant, and time-bound (SMART) objectives. structure (e.g., geographic, product-based,
- Develop Strategy:Align sales strategy with customer-based, or hybrid).
overall business objectives, market conditions, - Define Roles: Clearly outline roles and responsibilities
and customer needs. for each position within the sales team .

SALE
3. Recruitment and Selection 4. Training and Development
Onboarding Program: Develop a comprehensive
Identify Needs:** Assess the skills and attributes .
onboarding program to integrate new hires.
required for successful sales performance.
- Sales Training:*Provide initial and ongoing training on
- Attract Talent: Use job postings, recruitment agencies,
products, sales techniques, market knowledge,
and networking to find potential candidates.
and company culture.
- Selection Process: Implement a rigorous selection process,
- Skill Development:** Offer continuous development
including interviews, assessments, and background checks.
opportunities through workshops, courses, and coaching.
 Determinants of Sales Force Performance

The Quality of the The Pricing of Your Product

Products.

The Customer Care Service BUY SELL The Quality of Salespeople

.

The Budget for Sales Activities The Lack of Collaboration

across Departments

The Market Forces

 • OUT LINES
• Introduction
• Definition of MBO
• Importance of MBO
• Principles of MBO
• Process of MBO
• How to make MBO effective
• Advantages of MBO
• Disadvantages of MBO
• Limitations of MBO
• Introduction
• Peter Drucker in 1954.
• Concept of planning
• Accomplishment of objectives through participation of all
concerned persons
• Participative and democratic style of management
• The principle behind Management by Objectives (MBO) is
to make sure that everybody within the organization has a
clear understanding of the aims, or objectives, of that
organization, as well as awareness of their own roles and
responsibilities in achieving those aims.
• The complete MBO system is to get managers and
empowered employees acting to implement and achieve their
plans, which automatically achieve those of the organization.
• Definition of MBO
• MBO is "a dynamic system which seeks to integrate the
company's needs to clarify and achieve its profits and growth
goals with the manager's need to contribute and develop
himself. It is a demanding and rewarding style of managing a
business.“

• MBO is a systematic and organized approach that allows

management to focus on achievable goals and to attain the
best possible results from available resources.

• Management by objective is a philosophy of

management by which every managerial activity
must be directed at a specific objective
• Importance of MBO
1-To increase organizational performance by aligning
goals and subordinate objectives throughout the
organization.

2-Motivation – Involving employees in the whole process of

goal setting and increasing employee empowerment. This
increases employee job satisfaction and commitment.

3-Better communication and Coordination .

4-Clarity of goals and plans at all levels.

5-Subordinates tend to have a higher commitment to

objectives they set for themselves than those imposed on
them by another person.
6-Managers can ensure that objectives of the subordinates
are linked to the organization's objectives.
7-Evaluating employee performance according to
predetermined standard.
• Principles of MBO
• Cascading of organizational vision, goals and objectives

• Specific objectives for each member

• Participative decision making

• Explicit time period

• Performance evaluation and feedback

• Steps of MBO process
STEP 1: SET GOALS
• Corporate Strategic goals
• Departmental goals
• Individual goals
STEP 2: DEVELOP PLANS
-Action Plans
STEP 3: REVIEW PROGRESS
-Review Progress & Take Corrective Action
STEP 4: APPRAISE OVERALL PERFORMANCE
-Appraise Performance
 Define
Organizational
Goals

Performance Define Employee

Appraisals Objectives

Continuous
Monitoring Of
Providing
Employee
Feedback
Performance And
Progress

Performance
Evaluation/Revie
ws
1)Goal setting:
• Subordinate should actively participate in goal and objective setting.
• Objective should be (SMART)
• Specific, measurable, achievable, realistic, and time tabled.
2)Develop action plan:
• Goal setting should be translated into action plan. It requires
assignment of specific responsibilities to different departments,
division and individuals.
• It also requires allocation of necessary resources needed to perform the
assigned responsibilities.
• Time dimensions are also to be decided in order that targets are
reached without any delay.
3)Monitor progress:
• Monitor and evaluate employee actual performance against
the set objective at agree interval, the manager and
subordinate meet to discuss progress. At this meeting some
modification can be made to the origin goals.
4)Appraise Overall Performance
• It is the last step to evaluate performance annually and take
corrective actions according to the evaluation to avoid
deviation from predetermined objectives. Also used to
determine targets for next year or modification of goals if
needed.
• And cycle of MBO is repeated.
How to make MBO effective:
• Managers should be trained in MBO philosophy and
procedures before installing the system.
• Effective Feedback.
• Encouraging employee participation.
• Top management support.
• Formulating Clear Objectives
Advantages of MBO
1.Improves employee motivation
2.Improves communication in the organisation
3.Flags up and highlights training needs required to achieve objectives
4.Improves overall performance and efficiency
5.Attainment of goals can lead to the satisfaction of Maslow’s higher
order needs
6.Develops result-oriented philosophy
7.Means of planning and control
8.Facilitates personal leadership.
9.Basis for organizational change
10.Identify problems
11.Increase employee commitment as they participate in goal
setting.
12.Enhance spirit of team work
• Disadvantages of MBO
• 1) Subordinate feels uncomfortable
• 2) Lacks Objective clarity
• 3) Too much multi-tasking !!!
• 4) Low initial goal set by subordinates
• 5)Requires the cooperation of all employees to succeed
• 6)Can be bureaucratic and time consuming (meetings, feedback)
• 7)Can encourage short-term rather a more focused long-term growth
• 8)Objectives may go out of date and can restrict staff initiative and
creativity
• 9)May de-motivate staff if targets are too high and unrealistic, also if
imposed rather than agreed
Limitations of MBO:
• Time-consuming
• Failure to teach MBO philosophy
• Reward-punishment approach
• Increases paper-work
• Creates organizational problems
• Develops conflicting objectives
• Problem of co-ordination
• Inflexibility