Sales Management and Personal Selling
Sales Management and Personal Selling
PERSONAL SELLING
Sales Mgmt-Definition
Planning, direction and control of personal
selling, including recruiting, selling,
equipping, assigning, routing, supervising,
paying and motivating as these tasks
apply to the personal sales force.
-American Marketing Association
Decide
Objectives
Develop
Strategies
Evolve tactics/
Action plans
SALES FORECASTING
SALES FORECAST
Purpose- To plan and achieve the
forecasted sales in an effective manner.
Sales Forecasting
Used by
1. Manufacturing/production for setting up
production capacity and planning
production
2. Finance for raising cash for investment
operations and profit planning
3. Purchase function for planning their
purchases
4. HRM for manpower planning
Product level
Total Sales
Industry Sales
Company Sales
Product line sales
Product variant sales
Product item sales
Time period
Long range/term
Medium range/term
Short range/term
Geographic Area
Nation
Region
Territory(Branch/dist)
Customer
Qualitative
Executive Opinion
Delphi Method
Sales Force Composite
Survey of Buyers intention
Test marketing
Quantitative
Moving Averages
Exponential Smoothing
Decomposition
Nave/Ratio Method
Regression analysis
Econometric Analysis
Sales force Composite MethodEach salesperson estimates the sale in his territory.
Used mostly by industrial or business marketing
companies.
Advantages- Accuracy and reliability as sales forecasting
is done by sales people who are closest to the market,
detailed break up as per customer, product, territory
possible
Disadvantages- either pessimistic or optimistic because of
lack of training, on interest by sales people to do
forecasting, underestimation of demand if sales quota is
linked to incentive schemes
Quantitative Methods
Moving Average MethodCompany forecast is developed by calculating
the average company sales for previous years.
When a forecast is developed for the next
period, the sales in the oldest period is dropped
from the avg and replaced by sales in the
newest period.
Decomposition Method
The companys previous sales data is broken
down into 4 major components such as trend,
cycle, seasonal and erratic events. These
components are then recombined to produce the
sales data
Advantages- Conceptually sound
Disadvantages-Difficult and complex statistical
methods are needed to break down sales data
into various components, historical data needed.
Regression Analysis
Statistical forecasting method used to predict
sales, called as dependant variable Y. The
company then identifies causal relationship
between company sales and independent
variables which influence sales.
Depending on the number of independent
variables, either linear regression or multiple
regression analysis is done
Econometric Analysis
In this method, many regression equations are built to
forecast industry sales, general economic conditions or
future events
To find out which factors or variables influence sales and
the relationships between sales and these factors as well
as interrelationships between the factors, a number of
regression equations representing these relationships is
developed, a forecast is then prepared solving these
equations
Planning
Planning
Sales goals, strategy &
action plan
Co-ordination
At the corporate level, the budget process
is used for coordinating the activities of
various functional areas.
Control
Process of enhancing under/poor
performance with respect to budgeted
sales volume/expenses and taking
corrective action. Possible due to
establishment of sales budget.
Sales Organization
A Sales Organization should be evolved in
such a way so that it assists the sales
managers and sales people to carry out
their tasks effectively
a)
b)
c)
d)
e)
f)
Types of Sales
Org Structures
Functional Sales
Org
Horizontal Org
ADVANTAGES
Clear Authority
Responsibility
Quick decision making
Low cost
DISADVANTAGES
Dependency on head of sales
No support from subordinates
with specialized knowledge
and skills
Inadequate time for sales and
planning
DISADVANTAGES
ADVANTAGES
DISADVANTAGES
Effectiveness reduced as
company's products and
segments increase
Tough task for marketing head to
co-ordinate different functional
heads
Confusion of salesmen because of
multiple bosses
ADVANTAGES
Reduction in supervision,
unnecessary tasks and costs
Substantial improvement in
efficiency
Enthusiastic customer
responses.
DISADVANTAGES
Product
Staff
specialists
Market
Specialised
salesforce
Functional
Combination
Characteristics of a successful
salesman
1. Ability to define the positions exact functions
and duties in relation to the goals the company
should expect to attain.
2. Ability to select and train suitable subordinates,
willingness to delegate authority with minimum
supervision
3. Ability to utilize time effectively
4. Ability to allocate sufficient time for thinking
and planning
5. Ability to exercise skilled leadership
External
Internal
Employee referral
Current employees
Promotions and transfers
Ads
Internet
Educational institutes
Employment agencies
Competitors, non
competitors
Job fairs