Lecture 7 - Sales Management | Improve Sales Pitch & PR PDF Download

 Page 1


 
 
 
 
 
 
 
 
 
 
 
 
Lesson: Sales Management  
Course Developer : Anita Mendiratta 
College, Department: Keshav Mahavidyalaya,University 
of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 2


 
 
 
 
 
 
 
 
 
 
 
 
Lesson: Sales Management  
Course Developer : Anita Mendiratta 
College, Department: Keshav Mahavidyalaya,University 
of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Management 
 
2 
Institute of Lifelong Learning, University of Delhi 
 
 
 
 
Table of Contents: 
 
Lesson: Sales Management 
 
1: Learning Outcomes 
2: Introduction 
3: Evolution of Sales management 
4: Sales Management 
4.1: Meaning and Definition of Sales Management 
4.2: Types of Sales people 
4.3: Objectives of Sales Management 
5: Sales Manager 
5.1: Role of Sales Manager 
5.2: Functions of sales Manager 
6: Sales Territory / Territory Coverage 
6.1: Reasons for designing Sales Territory 
6.2: Procedure for designing sales Territory 
6.3: Routing and scheduling Sales Personnel 
Summary  
Exercises 
Glossary 
References 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the meaning of sales management, 
? appreciate the need of sales management in an organization, 
? comprehend the objectives of sales management, 
? differentiate  between order taker, order getter and supporting staff, 
? conceptualize the concept and functions of a sales manager, 
? explain the major role of the sales manager, 
? appreciate the importance of planning and operating functions of a 
sales manager, 
? understand the concept of sales territory, 
? enumerate the reasons for designing the sales territory, 
? comprehend the procedure for designing the sales territory, 
? understand the concept of routing and scheduling the sales 
personnel. 
 
 
Page 3


 
 
 
 
 
 
 
 
 
 
 
 
Lesson: Sales Management  
Course Developer : Anita Mendiratta 
College, Department: Keshav Mahavidyalaya,University 
of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Management 
 
2 
Institute of Lifelong Learning, University of Delhi 
 
 
 
 
Table of Contents: 
 
Lesson: Sales Management 
 
1: Learning Outcomes 
2: Introduction 
3: Evolution of Sales management 
4: Sales Management 
4.1: Meaning and Definition of Sales Management 
4.2: Types of Sales people 
4.3: Objectives of Sales Management 
5: Sales Manager 
5.1: Role of Sales Manager 
5.2: Functions of sales Manager 
6: Sales Territory / Territory Coverage 
6.1: Reasons for designing Sales Territory 
6.2: Procedure for designing sales Territory 
6.3: Routing and scheduling Sales Personnel 
Summary  
Exercises 
Glossary 
References 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the meaning of sales management, 
? appreciate the need of sales management in an organization, 
? comprehend the objectives of sales management, 
? differentiate  between order taker, order getter and supporting staff, 
? conceptualize the concept and functions of a sales manager, 
? explain the major role of the sales manager, 
? appreciate the importance of planning and operating functions of a 
sales manager, 
? understand the concept of sales territory, 
? enumerate the reasons for designing the sales territory, 
? comprehend the procedure for designing the sales territory, 
? understand the concept of routing and scheduling the sales 
personnel. 
 
 
Sales Management 
 
3 
Institute of Lifelong Learning, University of Delhi 
 
 
 
2. Introduction 
 
The sales department is the only department in the organization generating revenues. 
The Sales managers who serve as a linking pin between company and the customers 
manage it. They have to work in a team comprising of the sales people. Today, the 
organization requires modern sales managers with a professional approach for their 
planning and operating functions. This is true for all types and sizes of organizations. It is 
interesting to note that earlier the sales area was not considered as an activity that can 
be taken as a separate department. But eventually, the need arouse and its importance 
gradually increased. This was due to the changing dynamics of the business environment. 
The changes in the business environment necessitated a new corporate culture with 
enterprising sales department that is able to develop profitable partnerships with 
customers.  
 
Figure 1: Sales Management 
 
 
 
3. Evolution of Sales Management 
 
Prior to Industrial revolution, small-scale enterprises had a commanding influence on the 
economies. The businesses were small and located near to the consumers. The 
Page 4


 
 
 
 
 
 
 
 
 
 
 
 
Lesson: Sales Management  
Course Developer : Anita Mendiratta 
College, Department: Keshav Mahavidyalaya,University 
of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Management 
 
2 
Institute of Lifelong Learning, University of Delhi 
 
 
 
 
Table of Contents: 
 
Lesson: Sales Management 
 
1: Learning Outcomes 
2: Introduction 
3: Evolution of Sales management 
4: Sales Management 
4.1: Meaning and Definition of Sales Management 
4.2: Types of Sales people 
4.3: Objectives of Sales Management 
5: Sales Manager 
5.1: Role of Sales Manager 
5.2: Functions of sales Manager 
6: Sales Territory / Territory Coverage 
6.1: Reasons for designing Sales Territory 
6.2: Procedure for designing sales Territory 
6.3: Routing and scheduling Sales Personnel 
Summary  
Exercises 
Glossary 
References 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the meaning of sales management, 
? appreciate the need of sales management in an organization, 
? comprehend the objectives of sales management, 
? differentiate  between order taker, order getter and supporting staff, 
? conceptualize the concept and functions of a sales manager, 
? explain the major role of the sales manager, 
? appreciate the importance of planning and operating functions of a 
sales manager, 
? understand the concept of sales territory, 
? enumerate the reasons for designing the sales territory, 
? comprehend the procedure for designing the sales territory, 
? understand the concept of routing and scheduling the sales 
personnel. 
 
 
Sales Management 
 
3 
Institute of Lifelong Learning, University of Delhi 
 
 
 
2. Introduction 
 
The sales department is the only department in the organization generating revenues. 
The Sales managers who serve as a linking pin between company and the customers 
manage it. They have to work in a team comprising of the sales people. Today, the 
organization requires modern sales managers with a professional approach for their 
planning and operating functions. This is true for all types and sizes of organizations. It is 
interesting to note that earlier the sales area was not considered as an activity that can 
be taken as a separate department. But eventually, the need arouse and its importance 
gradually increased. This was due to the changing dynamics of the business environment. 
The changes in the business environment necessitated a new corporate culture with 
enterprising sales department that is able to develop profitable partnerships with 
customers.  
 
Figure 1: Sales Management 
 
 
 
3. Evolution of Sales Management 
 
Prior to Industrial revolution, small-scale enterprises had a commanding influence on the 
economies. The businesses were small and located near to the consumers. The 
Sales Management 
 
4 
Institute of Lifelong Learning, University of Delhi 
shopkeepers efficiently and competently were selling the products to consumers at large. 
At that time, selling was easier, while the main concern was to produce enough goods to 
cope with the demand, so manufacturing was considered important. After the Industrial 
revolution in England and the American Revolution in the United States, the new factories 
and manufacturing units were built and productions in large quantities were started. This 
increase in supply of products also necessitated increase in demand (and hence sales) 
and led to exploration of potential markets at national and global levels. This was 
possible with the involvement of wholesaler and retail, selling the products to the 
customers located at distance from the manufacturing unit of the company. As a result, 
the advertising, promotional activities, shipping etc. becomes indispensable and required 
a different department to deal with. It therefore, becomes necessary to split the 
marketing functions into sales. Today, almost all the business organizations have a sales 
department to look after the various aspects related to sales. This may include mentoring 
leadership, coaching sales people and producing results. 
 
Figure 2: Sales Management 
 
 
 
4. Sales Management 
 
4.1 Meaning and Definition of Sales Management 
 
The term Sales Management consists of two words- Sales and Management. Both the 
terms are used commonly in our day-to-day business. Before defining Sales 
management, we should understand sales and management separately. 
 
Sales mean selling a product or service in return for money or any other compensation. 
Basically, it is an exchange of goods and services between two parties, the buyer and the 
Page 5


 
 
 
 
 
 
 
 
 
 
 
 
Lesson: Sales Management  
Course Developer : Anita Mendiratta 
College, Department: Keshav Mahavidyalaya,University 
of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Management 
 
2 
Institute of Lifelong Learning, University of Delhi 
 
 
 
 
Table of Contents: 
 
Lesson: Sales Management 
 
1: Learning Outcomes 
2: Introduction 
3: Evolution of Sales management 
4: Sales Management 
4.1: Meaning and Definition of Sales Management 
4.2: Types of Sales people 
4.3: Objectives of Sales Management 
5: Sales Manager 
5.1: Role of Sales Manager 
5.2: Functions of sales Manager 
6: Sales Territory / Territory Coverage 
6.1: Reasons for designing Sales Territory 
6.2: Procedure for designing sales Territory 
6.3: Routing and scheduling Sales Personnel 
Summary  
Exercises 
Glossary 
References 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the meaning of sales management, 
? appreciate the need of sales management in an organization, 
? comprehend the objectives of sales management, 
? differentiate  between order taker, order getter and supporting staff, 
? conceptualize the concept and functions of a sales manager, 
? explain the major role of the sales manager, 
? appreciate the importance of planning and operating functions of a 
sales manager, 
? understand the concept of sales territory, 
? enumerate the reasons for designing the sales territory, 
? comprehend the procedure for designing the sales territory, 
? understand the concept of routing and scheduling the sales 
personnel. 
 
 
Sales Management 
 
3 
Institute of Lifelong Learning, University of Delhi 
 
 
 
2. Introduction 
 
The sales department is the only department in the organization generating revenues. 
The Sales managers who serve as a linking pin between company and the customers 
manage it. They have to work in a team comprising of the sales people. Today, the 
organization requires modern sales managers with a professional approach for their 
planning and operating functions. This is true for all types and sizes of organizations. It is 
interesting to note that earlier the sales area was not considered as an activity that can 
be taken as a separate department. But eventually, the need arouse and its importance 
gradually increased. This was due to the changing dynamics of the business environment. 
The changes in the business environment necessitated a new corporate culture with 
enterprising sales department that is able to develop profitable partnerships with 
customers.  
 
Figure 1: Sales Management 
 
 
 
3. Evolution of Sales Management 
 
Prior to Industrial revolution, small-scale enterprises had a commanding influence on the 
economies. The businesses were small and located near to the consumers. The 
Sales Management 
 
4 
Institute of Lifelong Learning, University of Delhi 
shopkeepers efficiently and competently were selling the products to consumers at large. 
At that time, selling was easier, while the main concern was to produce enough goods to 
cope with the demand, so manufacturing was considered important. After the Industrial 
revolution in England and the American Revolution in the United States, the new factories 
and manufacturing units were built and productions in large quantities were started. This 
increase in supply of products also necessitated increase in demand (and hence sales) 
and led to exploration of potential markets at national and global levels. This was 
possible with the involvement of wholesaler and retail, selling the products to the 
customers located at distance from the manufacturing unit of the company. As a result, 
the advertising, promotional activities, shipping etc. becomes indispensable and required 
a different department to deal with. It therefore, becomes necessary to split the 
marketing functions into sales. Today, almost all the business organizations have a sales 
department to look after the various aspects related to sales. This may include mentoring 
leadership, coaching sales people and producing results. 
 
Figure 2: Sales Management 
 
 
 
4. Sales Management 
 
4.1 Meaning and Definition of Sales Management 
 
The term Sales Management consists of two words- Sales and Management. Both the 
terms are used commonly in our day-to-day business. Before defining Sales 
management, we should understand sales and management separately. 
 
Sales mean selling a product or service in return for money or any other compensation. 
Basically, it is an exchange of goods and services between two parties, the buyer and the 
Sales Management 
 
5 
Institute of Lifelong Learning, University of Delhi 
seller. The seller gets the monetary reward in the form of profits by satisfying the needs 
of the buyer. 
 
Many scholars have defined management. Some of the definitions are as follows: 
“Management is the process of designing and maintaining an environment in 
which individuals, working together in groups, efficiently accomplish selected aims”. 
(Heinz Weihrich & Harold Koontz) 
 
“Management is an art of getting things done through people”. (Mary Parker 
Follet) 
 
The emphasis is on the word management now–a-days to do the sales exercise with a 
professional approach by planning, organising and controlling the prescribed tasks. 
 
The Definitions Committee of the American Marketing Association (AMA) gives one of the 
most acceptable definitions of Sales management– 
 
“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 sales force”. This definition emphasised on 
management of sales force. In actual practice, the Sales Management is much 
more than that. However, the primary assignment of the Sales manager is the 
management of personal sales force. While the personnel related tasks do not 
comprise their total responsibility, as a result, their personnel related 
responsibilities are called as sales force management. 
 
Sales Management has undergone a major change because of changing trends, products 
with reduced life cycle, reduced customer loyalty, increase expectations, fierce 
competition and complex sales cycle. The modern sales managers are supposed to play a 
much more strategic role and to provide feedback to the company regarding the 
turbulent business environment for formulation of new and revised plans. Today, 
professionals are required to perform the broadened functions of modern Sales manager. 
 
4.2 Types of Sales People 
 
The different types of Sales people catering the demands of customer are as follows: 
 
1. Order taker 
They maintain the relationship with the existing customers by processing their routine 
orders/ reorders. 
 
2. Order getter 
They identify the prospective customer, providing information, persuading them, closing 
the sale and follow up. This job requires high degree of creativity, considerable product 
knowledge, problem solving approach and sales training. 
 
3. Supporting Salespeople 
They are the supporting staff to built goodwill and educating the public. 
? Technical Sales supports are required when the product is technical in nature and 
requires high level of technical knowledge and professional consulting. 
 
? Missionary sales supports are with a mission to market and not merely taking 
orders. They create a favourable attitude in the minds of customers.