KAMKUS COLLEGE OF LAW

Class: B.Com LL.B. Semester: 2ndSubject:

Sales Management. Paper Code:
BCL- 2002

Topic:

Unit 1- Sales Management

Contents

•Evolution of Sales Function

•Objectives of Sales Management Positions

•Functions of Sales Executives

•Relations with other Executives

What is Sales Management?
It means the planning, organisation, assigning, direction,
supervision, remuneration, motivation and control of all
the selling activities of a business and industrial enterprise.

It includes marketing research, sales research, sales

forecasting, formation of sales organisation, appointment of
selling force, training of selling force, determination of
remuneration for selling force, advertisement, sales promotion
and personal selling.
Evolution of Sales Management
• Pre-Industrial Revolution (Before Mass Production): Businesses were small, and production was

limited to local markets. The owner was responsible for both manufacturing and selling, with no

separate sales function.

• Industrial Revolution (Mass Production Era): The factory system led to large-scale production,

which created a need for distribution and selling. Businesses realized they had to reach beyond

local markets and communicate with new buyers. Specialized functions like sales and distribution

emerged as separate departments.

• Development of Distribution Channels: Wholesalers and retailers became key players in

connecting manufacturers with consumers. Mass selling became a necessity as production volumes

increased.

• Corporate Growth and Specialized Sales Functions: Large businesses separated ownership from

management, giving rise to specialized sales departments. Additional functions like promotion,

marketing research, credit, and logistics were integrated into sales management.
Characteristics of Sales Management
• Sales management is a part of marketing management.

• It is concerned with the management of selling function.

• It is an important function of management.

• It is the management of sales force.

• It is done for specific objectives.

Objectives of Sales Management
• To design a sales programme.

• To establish and manage a sales organisation.

• To control the sales performance, sales activities and expenditure

• To set the sales goals, formulate the sales policies and design the sales strategies.

• To prepare a sales plan to implement the sales objectives.

• To manage the sales force.

• To interact with other departments.

• To interact with the trade and customers.

• To interact with the marketing department.

Importance of Sales Management
• Sales Maximisation

• Profit Maximisation

• Growth and Development

• Strong Planning

• Formation of Organisation

• Advise to Top Management

• Important for sales Force Management

• Optimum Relationship
Sales Management V. Marketing
Management
Basis Marketing Management Sales Management

Definition It is Planning, Organising, Directing and It means the planning, organising, assigning,
Controlling activities, which facilitates directing, supervision, remuneration,
Exchange of Goods and Services btw motivation and control of all the selling
producer and consumer or users of product activities of a business and industrial enterprise
and services.

Activities Includes all activities performed in the Includes all activities performed in the process
process of satisfying consumers’ needs of making sales.

Scope Wider. Includes all the activities from the Narrower. Includes the activities connected with
beginning of ascertaining the needs and transfer of ownership in goods and services
requirements of the consumers to the from sailor to the buyer
fulfillment and satisfaction of the bonds of
the actual users

Object Maximize profits through customers’ Maximize profits through maximize

satisfaction profitability

Nature It includes Sales Management Only a part of Marketing Management

New v Old Newer concept Older concept

Sales Manager
•A sales manager is the chief executive responsible for sales
administration in a business. They play a crucial role in planning,
organizing, directing, and coordinating sales activities to ensure
customer satisfaction and business profitability.

• They act as the driving force behind sales operations, guiding the team
toward achieving sales goals. A sales manager must have strong
managerial skills, vision, and foresight to forecast market trends,
manage personnel, and develop effective sales strategies.

• Their role may also involve overseeing various elements of the marketing
mix, such as product, price, promotion, and distribution.
Administrative Function

1. Sales Planning- Planning future sales strategies, setting goals, and forecasting
demand. Example: A company analyzes past sales data to set next quarter’s
targets.

2. Sales Policy and Strategies- Creating guidelines for selling products, including
pricing and discounts. Example: A car company offers seasonal discounts to boost
sales.

3. Sales Forecasting- Predicting future sales based on market trends and customer
demand. Example: A smartphone brand estimates sales based on past festival
season sales.

4. Sales Administration- Managing resources, budgets, and operations for sales

effectiveness. A sales manager ensures that all sales representatives have proper
training and materials.
5. Sales Organization- Structuring the sales team and defining roles for efficiency.
Example: A company has regional sales managers to handle different territories.

6. Communications- Keeping sales personnel informed about sales results, targets,

and strategies. Example: A sales manager conducts weekly meetings to discuss
sales trends and market conditions. And also to Vice President

7. Budgetary Control- Managing sales expenses to ensure profitability and cost-

effectiveness. Example: A company sets a fixed budget for advertising and ensures
it doesn’t exceed the allocated amount.

8. Analyzing and Evaluating or Decision Making- Assessing sales performance

and making strategic decisions to improve sales outcomes. Example: A business
discontinues a low-selling product and focuses on promoting a high-demand one.
9. Marketing Research- Conducting research to understand customer needs and
market trends. Example: A company surveys customers to find out what features
they want in the next smartphone model.

10. Co-ordination in Advertising and Sales Promotion- This involves aligning

advertising and sales promotion efforts to effectively support the sales team. It
includes planning, budgeting, and evaluating advertising campaigns, ensuring that
promotional activities like incentives, contests, and exhibitions attract customers.
Example: A company launching a new smartphone runs a social media ad
campaign and offers a limited-time discount. The marketing team handles the ads,
while the sales team ensures smooth product availability and customer
engagement.
Functions Related to Sales Force Management

1. Sales Force Structure - This involves organizing the sales team based on
different structures such as territorial, product-based, or customer-based
sales forces.

2. Selection of Sales Personnel - Selection of men capable of selling the

products through different stages of selection.

3. Placement of Sales Personnel- Assigning right candidate to a job opening

and ensuring they fit well in the role. This ensures employees work
effectively.

4. Training of Sales Personnel- Training enhances employees' skills,

knowledge, and productivity. It ensures consistent performance. Sales
training includes both new and experienced employees, with refresher
5. Remuneration of Sales Personnel- Sales managers must design a fair and
attractive salary structure. Good remuneration motivates employees and retains
talent. Payment plans can be salary-based, commission-based, or a mix of both.

6. Motivation of Sales Personnel- A motivated sales team performs better and

stays engaged. Motivation can be financial (cash incentives, bonuses) or non-
financial (recognition, awards, career growth). Sales managers should create a
positive work environment and encourage employees' contributions.

7. Direction- Sales management is responsible not only for planning but also for
guiding and supervising sales activities. It ensures that the sales team works
efficiently toward achieving organizational goals.
8. Control- Control is necessary for smooth operations. The sales manager must
monitor sales activities continuously, making adjustments when needed to
maintain efficiency.

9. Internal and External Relations – The sales manager must maintain strong
relationships within the company (with department heads and the general
manager) and externally (with key customers) to enhance cooperation and sales
growth

10. Determination of Territory Size – The sales territory is decided based on equal
sales potential (ensuring all territories have similar revenue opportunities) or equal
workload (ensuring sales representatives have balanced responsibilities). Proper
territory management ensures maximum productivity and helps align sales efforts
11. Fixing the Sales Quota – Sales quotas are performance targets
set for salespeople. They act as benchmarks to measure their
effectiveness and ensure that organizational goals are met.

12. Evaluation of Performance – Sales management evaluates sales

performance based on various factors, including sales results,
individual salesperson efficiency, advertising effectiveness, and the
role of intermediaries in influencing customer behavior.
Functions of Sales Executive
1. Sales Planning & Strategy- Identifying sales targets and setting objectives. Developing

strategies to achieve sales goals. Analyzing market trends and customer needs.

2. Lead Generation & Prospecting- Identifying potential customers through research and

networking. Reaching out to leads via calls, emails, or meetings. Qualifying leads and

converting them into buyers.

3. Client Relationship Management- Building strong relationships with customers.

Understanding client needs and offering suitable solutions. Ensuring customer

satisfaction and handling complaints.

4. Product Knowledge & Demonstration- Understanding the features, benefits, and value

of products/services. Educating customers and conducting product demonstrations.

5. Negotiation & Closing Sales- Negotiating terms, pricing, and contracts.

Overcoming objections and persuading customers. Finalizing deals and ensuring

smooth transactions.

6. Sales Reporting & Performance Analysis- Tracking sales and preparing

reports. Evaluating performance against targets. Suggesting improvements for

better sales outcomes.

7. Coordination with Other Departments- Working with marketing for

promotional activities. Collaborating with finance and logistics for smooth

operations. Providing customer feedback to product development teams.

Relations with other executives
A Sales Executive works closely with various executives in an organization to ensure smooth sales
operations and business growth. Their key relationships include:

1. Sales Manager/Sales Director- Reports on sales performance and market trends. Receives
guidance on sales targets and strategies. Collaborates on sales training and performance
improvement.

2. Marketing Executive/Manager- Aligns sales strategies with marketing campaigns. Shares

customer feedback for better marketing messaging. Works on lead generation and brand
positioning.

3. Finance Executive/CFO- Discusses pricing strategies and payment terms. Ensures timely
invoicing and revenue tracking. Coordinates on sales budget and cost control.

4. Product Manager/R&D Team- Provides customer feedback for product improvement.

Understands product features to communicate value to customers. Helps in launching new
products in the market.
5. Operations & Supply Chain Manager- Ensures product availability and
timely delivery. Discusses stock levels and logistics for smooth sales fulfillment.
Addresses issues related to order processing and inventory management.

6. Customer Service Manager- Resolves customer complaints and service

issues. Works on improving customer experience and retention. Shares insights
on customer expectations and product quality.

7. HR Manager- Participates in sales training and team-building activities.

Discusses recruitment needs for expanding the sales team. Addresses
performance management and incentive structures.