nature and role of sales management

8/13/2019 nature and role of sales management

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Difference between selling and

marketing

Selling Marketing

1. Emphasis on product Emphasis on consumer needs andwants

2. Company manufactures the productfirst and then decides to sell it

Company first determines customersneed and wants and then decide on

how to deliver a product to satisfy thesewants

3.Mgt. is Sales-volume oriented Mgt. is profit oriented

4. Planning is short term orientedIn terms of today s product and mkt

Planning is long term oriented in termsof tomorrow's market and futuregrowth


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5. Stresses needs of a seller Stresses needs and wants of buyers

6. Views business as a goods producing

process

Views business as a consumer satisfying

process7. Emphasis on staying with existingtechnology and reducing cost

Emphasis on innovation in every sphereon better value to the customer byadopting a superior technology

8. Cost determines price Consumers determine price , price

determines cost


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The basic function and role of selling

S.Mgt is more strategic and of long term as it involves

Planning

Organising

Directing Controlling of all the selling activities of organization

Generate sales Earn revenue


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Selling approach highlights:-

Maintaining good customer relationship

Managing the profitability of a firm

Managing customer complaints

Building brand value in the eyes of the customer


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Strategic decisions such as

Organizing the sales force

Determining the sales force compensation structure

Forecasting long term sales

Over all controlling of sales organization


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The role of sales manager in an organization has

become strategic. He is looked at as combination ofAn accountant

Planner

Personal Manager

Marketer


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Duties and responsibilities of Sales Manager

Determining sales force objectives and goals

Finalizing sales force organization, size, territory, andquota

Forecasting and budgeting sales

Selecting, recruiting and training 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.


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The job of a sales manager is not only to organize sales but alsoto carry out management function. The function of SM can be

classified into 2 partsSM functions

Personal Selling

Personal communicationSatisfying the buyers currentand latent needs.Establish and build aprofitable & symbioticrelationship with customer

Sales Mgt.

More strategic & long termconsequenceInvolves planning, organizing,directing & controlling all

selling activities


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Personal Selling

Personal Selling can be defined as the process of personto person communication between a salesperson and a

prospective customer in which the former learns aboutthe latters needs and seeks to satisfy those needs byoffering the prospective customer the opportunity tobuysomething of value, such as goods or a service.


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Characteristics of Personal Selling

1. It is flexible

2. It builds relationships

3. It allows more efficient communication4. It can be expensive

5. It is a form of dyadic communication


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Dyadic communication means direct or one on one

communication between two people. This offers thesalesperson an advantage over other form of marketingcomm.

It allows for tailoring of the message

Lack of distraction


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Personal selling Some important aspects

1. It enhances customers confidence in the seller.

2. It promotes long-term business relations through

personal intimacy.3. It provides a human touch to business transactions.

4. It helps facilitate the seller to understand eachcustomers need and preferences more clearly.

5. It helps satisfy a customer by modifying the product asper the customers choice and preference.


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6. Helps build long term relations between the businessand the customer.

7. It helps keep up with the competition in the market,based on product customization as per customerspreferences.

8. It is a powerful and effective tool in convincing the

customer about the product

9. Time lag between introducing a product through themedia and actual selling is reduced.

10. It provides prospective customer with a betterunderstanding of the product and an interactiveopportunity to liaise with the sales personnel.


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Setting Personal Selling Objectives S.Mgt. determines personal selling role in the

promotional program. The marketing planning groupsets personal selling objectives determines

Sales related Marketing Polices

Formulates personal selling strategies

Finalize the sales budget

The combined impact of these decisions constitutes the framework withinwhich the sales force is managed


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Types of personal selling objectives

Depending upon company objectives and the promotionmix, personal selling may be assigned such qualitativeobjectives such as:-

1. To do the entire selling job

2. To Service existing accounts

3. To search out and obtain new customers

4. To secure and maintain customers cooperation instocking and promoting the product line.

5. To keep customers informed on changes in theproduct line and other aspects of mkting strategy.


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6. To assist customers in selling the product line.

7. To provide technical advice and assistance tocustomers.

8. To assist with the training of middlemens salespersonnel .

9. To provide advice and assistance to middlemen onmanagement problems.

10. To collect and report market information of interest

and use to company mgt.

nature and role of sales management

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