Sales Management (20MBAMM401) 2020-21

SALES MANAGEMENT
Unit 1:
Introduction to sales management: Meaning, Evaluation, Importance, Personal
Selling, Emerging Trends in Sales Management, elementary study of sales
organizations, qualities and responsibilities of sales manager. Types of sales
organizations.

Unit 2:
Selling skills & selling strategies: Selling and buying Styles, selling skills,
situations, selling process, sales presentation, Handling customer objections, Follow-
u action.

Unit 3:
Management of Sales Territory & Sales Quota: Sales territory, meaning, size,
designing, sales quota, procedure for sales quota. Types of sales quota, Methods of
setting quota. Recruitment and selection of sales force, Training of sales force.

Unit 4:
Sales force motivation and compensation: Nature of motivation, Importance,
Process and factors in the motivation, Compensation-Meaning, Types of compensation
plans and evaluation of sales force by performance and appraisal process. Sales
management job: Standard sales management process-international sales
management -international market selection market survey approach or strategy.

Unit 5:
Sales Manager and Sales Person: Role of sales manager and sales people;
functions of sales manager, functions of sales person, types and characteristics of sales
manager and sales people-Time management for sales manager and sales person.

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Unit 6:
Selling on the internet: Selling agents for internet trading-net selling, advertising
in net trading, payment system in internet trading-smart card, credit card, debit card-
payment by card: advantages and disadvantages; How to make internet selling safe-
Digital signature, biometric method and legal or regulatory environment; Growth of
internet trading in India.

RECOMMENDED BOOKS:
• Sales Management by Charles, Futrell, 6/e, Thomson South Western,
2003.
• Sales & Distribution Management, Tapan K. Panda & Sunil Sahadev,
6/e, Oxford University Press.
• Managing of Sales Force by Spiro Stanton Rich, 11/e, TMH, 2003.

REFERENCE BOOKS:
• Sales & Retail Management, an Indian perspective by Dr.S.L Gupta,
1/e, Excel Books,2007.
• Salesmanship and Sales Management-P.K Sahu & K C Raut, 3/e, Vikas
PublishingHouse3.
• Sales Management-Douglas J Dalrymple, William L Crowe-John
Wiley & Co.

Unit 1
Introduction to sales management: Meaning, Evaluation, Importance,
Personal Selling, Emerging Trends in Sales Management, elementary study of sales
organizations, qualities and responsibilities of sales manager. Types of sales
organizations.

Introduction
The word sales management is a combination of two words- sales and management.
Sales is the art of planning in the mind of another a motive which will induce favorable

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action. Sales management is generally acknowledged to be the backbone of marketing.

Earlier days organizations were small and the production was limited, and meant for
local market. Selling was thus not a complex activity. But now selling is treated as
strategic activity of an organization. Selling is only one activity which generates the
revenue for the organization thus organizations have to give more importance the sales
management. Sales management includes many activities like, preparation sales
budget, selecting sales territory, selecting and recruiting sales people, motivating,
training, controlling the sales personnel.

Definition
Sales Management ―is the attainment of sales forces goals in an effective and efficient
manner through planning, staffing, training, leading, and controlling organizational
resources.‖

According to the definition committee of the American marketing association sales

management meant ―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‖.

Importance of Sales Management

• It Increases the sales volume of an organization.
• Sales management identifies the new customers.
• It induces new customers to purchase the goods.
• Helps in interpreting sentiments of the market.
• Increases the rate of the production.
• Reduces the cost of the production by large scale production.
• It cultivates newer markets.

Objectives of Sales Management

There are three basic objectives of sales management viz. increasing sales volume,
contributing to company profits and long term growth of an organization. Sales

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management has over the years assumed broader significance as in addition to the
management of personal selling, sales management includes marketing activities like
advertising, sales promotion, marketing research, physical distribution, pricing and
product merchandising.

Some other objectives of sales management are as follows:

1. Revenue Generation – One of the main objectives of sales management is to

generate revenue for the organization. The sales department is solely responsible to
bring in the money.

2. Increase Sales Volume – Through efficient sales management, the organization

wishes to increase the number of units sold. This will ensure that the production
facilities do not remain idle and are utilized to the fullest.

3. Sustained Profits – Sales management has an objective of improving the profits of

the organization through effective planning, coordination and control. Sales
management strives to increase sales and reducing costs, this ensures good profits for
the organization.

4. Organization Growth – With the sustained and continuous sales management

techniques, the organization tends to gain market share and results in growth of the
organization.

5. Market Leadership – With increased sales volumes and profits, ‗sales

management‘ enables an organization to become the market leader.

6. Converting Prospects to Customers – Getting prospects to become customers is

an art and a science, it requires good planning and sustained efforts. This is
accomplished through sales management.

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7. Motivate the Sales Force – One of the core objectives of sales management is to
motivate the sales force. Selling is a very stressful task, achieving sales targets can
become very challenging. Therefore, the sales management task is to ensure that the
sales force is continuously motivated through proper incentives and reward systems.

8. Compliment Marketing Activities – Sales management‘s task is to support the

marketing functions of the organization. Marketing and sales need to go hand in hand to
achieve the desired results.

Sales Management – 20 General Functions

The general functions of sales management are as follows:

1. Preparing the Sales Plan

2. Recruiting the right people to execute the sales plan
3. Training the people selected to build competency in achieving the targets set and
fulfilling the organization‘s objectives.
4. Defining the sales territories
5. Specifying the sales quota to be achieved for each territory
6. Defining the remuneration and reward system for the sales force
7. Providing welfare and healthcare facilities to the sales force
8. Devising a sales force development program
9. Analyzing past performance with the current performance and making predictions on
demand
10. Coordinating with the marketing department and the consumers
11. Sales planning and sales policies
12. Pricing policy and price fixing
13. Advertising and sales promotion
14. Scientific salespersonship, management and control of sales force
15. Marketing research
16. Planning and control of sales operations and control of sales costs
17. Selection and management of channels of distribution

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18. Branding, packing and labeling

19. After sales service, if necessary
20. Integration and coordination of all functions

Evaluation of Sales Management

The beginning era identified as Simple Trade Era, lasted from the beginning of the
marketing concept to the mid 19th century. In this period whatever products available
were harvested with limited offerings. Exploration and trade in resources was the focus
of the economic activity with products as center of attraction.

In the next stage the simple trade era was replaced by the production era, continued
until the great depression. In this era importance was given on engineering and
production. The primary objective was to only produce product and sell it to the market
in assumption that customers have to accept it as alternatives were not available.

The sales era lasted between 1920‘s and 1940‘s, emphasized on different marketing
related aspects rather than product only. As consumer markets were saturated and
competitions were increasing day by day so it was not easy to sell product without
providing adequate information about the brand. Here price became one of the most
important features to organizations to get an edge over their rivals.

During the post Second World War phase, World featured economic boom resulted a
urgent need of a separate department for marketing called as Marketing Department
Era. Here organizations experienced that past sales orientation concept were not
sufficient to motivate consumers as they have more bargaining power in market place.
Business consolidated market related activities like advertisement, sales promotion,
public relation etc into a consolidated department and concentrating on brand
positioning.

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As the premise of the marketing concept became widely accepted so the era of
marketing organization emerged to take care of customers‘ need. Now customers are the
focal point and all employees became part of the marketing effort. In the classical theory
of marketing evolution this is the last stage followed by two modified version of sub-
stages.

This sub-stage within marketing concept identified as the relationship marketing

concept. The goal of the organization is to build-up a long-term relationship with
customers. The general focus has changed to lifetime customer value and customer
loyalty. Customer relationship management and data-mining become the buzzwords in
recent marketing scenario.ii) The second sub-stage within the marketing concept is
identified as social/mobile marketing concept. It summed-up the knowledge and
theories of its predecessor era but focuses on real-time connections and social
exchanges based on build-up relationship driven by the consumers. In this concept
businesses are connected 24/7 to current, future and potential consumers in real time.

Components of Sales Management

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Sales Management Functions

Planning
The conscious, systemic process of making decisions about goals and activities that an
individual, group, work unit, or organization will pursue in the future and the use of
resources needed to attain them.

Staffing
Activities undertaken to attract, develop, and maintain effective sales personnel within
an organization.

SALES TRAINING
The effort put forth by an employer to provide the salesperson job-related culture, skills,
knowledge, and attitudes that result in improved performance in the selling
environment.

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LEADING
The ability to influence other people toward the attainment of objectives.

CONTROLLING
Monitoring sales personnel‘s activities, determining whether the organization is on
target toward its goals, and making corrections as necessary.

Personal Selling
According to American Marketing Association personal selling is ―the personal or
impersonal process of assisting and/or persuading a prospective customer or by a
commodity or service or to act of favourable upon idea that has commercial significance
to the seller ―

‗Personal Selling‘ is a highly distinctive form of promotion. It is basically a two way

communication involving not only individual but social behaviour also. It aims at
bringing the right products to the right customers. It takes several forms including calls
by company‘s sales representative, assistance by a sales clerk, an informal invitation
from one company executive to another. It is employed for the purpose of creating
product awareness, stimulating interest, developing brand preference, negotiating price
etc.

The increase in complexity of products has increased the importance of personal selling.
Manufacturers of highly technical products such as computers, Laptops, digital phones,
microwave kitchen appliances, remote control equipments etc. depend more heavily on
personal selling than do grocery or toiletry products manufacturers.

Ever growing competition from domestic and foreign sources have also increased the
importance of sales persons in the marketing effort of a firm. In personal selling,
company‘s sales persons are often referred to as sales representative, salesman or sales
girl, they remain on the company‘s payroll or work on commission basis or both to push

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the product in the market by positively motivating the prospective customer through
oral presentation or demonstrating the product in question.

Consumers want all sorts of goods and services but inertia may keep them from buying.
Sales efforts stimulate the consumption process by reducing people‘s inherent
reluctance to make purchase decision. In fact sales person act as catalyst in the market
place. When the nature of the product is such that the buyer needs special information
in order to use it properly, sales representative acts as a consultant to consumer, to
apprise them of products technicalities and usage. Sales person also work out the details
of manner and timing of given physical possession.

In case of industrial products, the promotion mix mostly consist of personal selling
rather than advertising. Being high value and complex product, personal contact with
the customer is essential to convince him 24 of the product‘s quality and utility. On the
other hand, consumer product companies use personal selling together with advertising,
to influence prospect to try their brand. But personal selling in this case cannot
substitute for advertising, it can only be used tactically to intensify marketing effort,
mainly because it is expensive.

Salesmanship

Salesmen ship is the art of successfully persuading prospects or to buy products or

services from which they can derive suitable benefits, thereby increasing their total
satisfaction.

PERSONAL SELLING OBJECTIVES

The qualitative personal selling objectives are long term and concern the contribution
management expects personal selling to make in achieving long-term company
objectives. These objectives generally are carried over from one period‘s promotional

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program to the next. Depending upon company objectives and the promotional mix,
personal selling may be assigned such qualitative objectives as

1. To do the entire selling job (as when there are no other elements in the promotional
mix).
2. To ―service‖ existing accounts (that is, to maintain contacts with present customers,
take orders, and so forth).
3. To search out and obtain new customers.
4. To secure and maintain customers‘ cooperation in stocking and promoting the
product line.
5. To keep customers informed on changes in the product line and other aspects of
marketing strategy.
6. To assist customers in selling the product line (as through ―missionary selling‖). 25
7. To provide technical advice and assistance to customers (as with complicated
products and where products are especially designed to fit buyers‘
specializations).
8. To assist (or handle) the training of middlemen‘s sales personnel.
9. To provide advice and assistance to middlemen on management problems.
10. To collect and report market information of interest and use
to company management.

The basic considerations in setting qualitative personal selling objectives are decisions
on sales policies and personal selling strategies and their role in the total promotional
program. After this role is defined, qualitative long-term personal selling objectives are
set. In turn, the qualitative personal selling objectives become the major determinants
of the quantitative personal selling objectives.
The quantitative objectives assigned to personal selling are short term and are adjusted
from one promotional period to another. The sales volume objective-the rupee or unit
sales volume management sets as the target for the promotional period-is the key
quantitative objective. All other quantitative personal selling objectives are derived from
or are related to the sales volume objective. Thus, discussion here focuses upon the

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setting of sales volume objectives. Setting the sales volume objective influences the
setting of other quantitative personal selling objectives, among them the following:

1. To capture and retain a certain market share.

2. To obtain sales volume in ways that contribute to profitability (for example, by selling
the ―optimum‖ mix of company products).
3. To obtain some number of new accounts of given types.
4. To keep personal selling expenses within set limits.
5. To secure targeted percentages of certain accounts‘ business.

Steps in Personal Selling

1. Prospecting and Qualifying

The selling process begins with prospecting or finding qualified potential customers.
Except in retail selling, it is unlikely that customers will come to the sales person. In
order to sell the product, the sales person must seek out potential customers,
prospecting involves two major activities-
(a) identifying potential customers also known as prospects; and
(b) qualifying them in order to determine if they are valid prospects.

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(a) Identifying prospects

The identification of potential customers is not an easy job, especially for a new sales
person. Rejection rate is quite high and immediate payoffs are usually minimal. In some
consumer goods businesses, identification of prospects usually come from friends and
acquaintances, other sales people, former customers, present customers etc.

Few of the best sources and techniques for finding prospects are discussed below.

Present customers: The best source of prospects is usually the sales person‘s
existing satisfied customers. It is much easier to sell additional goods and services
to existing customers than to attract new customers. Indian companies are using
this method of selling successfully.

For example person or an organization who has purchased a portable typewriter

from an office automation product company and is pleased with it is usually more
receptive to purchase a bigger typewriter and similar product from the same
company than someone else. This is the main reason, present customers should get
first priority by the company when new products and services are introduced.

Endless chain: This is also an effective prospecting tactics. In this method

companies use satisfied customers as source of referrals. Sales representatives ask
current customers for names of friends or business associates who might need
similar products or services. Then, as the sales person contacts and sells to these
prospects, more referrals are solicited. In this way the process continues further.

Centre of Influence: Another effective prospecting technique based on referrals

is the center of influence approach. A center of influence is a person with
information about other people or influence 33 over them that can help a sales
person identify good prospects. Some frequently used centers of influences are
housewives, bankers, local politicians etc.

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Spotters: Some companies use spotters as a source for prospecting potential

customers. Spotters are usually ‗sales trainees‘ who help sales person identifying
prospects, thus saving time and qualifying sales lead.

Cold call: Cold call is also known as unsolicited sales calls. This prospecting
techniques involves knocking on doors. The sales person makes contact with a
potential customers, introduces himself or herself, and asks if there is a use for the
product or service. This technique is utilized by the sales person when they have
time available between scheduled appointments.

Directories: A wide variety of directories are full of prospect. The classified

telephone directory is the most obvious one. A sales person may also find that
membership directories of trade associations, professional societies, and civic and
social organizations are good sources for prospects.

Mailing lists: In India, specialized companies compile lists of individuals and

organizations for direct mail advertisers. These lists may also be used to identify
sales prospects. The major advantages of mailing list are that they are often more
current and more selective than directories.

Trade shows and exhibitions: A cost effective way to make personal contacts
and locate prospective buyer is to participate in trade shows and exhibitions. Now a
days more and more companies are 34 increasing their participation in these
shows and exhibitions to company‘s booth by mailing invitations or promising a
gift. Advance announcements sent to trade publications may also help to attract
prospects. In view of the rising costs of personal selling trade shows have become
an increasingly important source of prospecting. India International Trade Fair
organized by Trade Fair Authority of India every year provides a good example of
usage of trade shows for prospecting.

(b) Qualifying prospects Once the sales person has identified potential customers,
he or she must qualify them to determine, if they are valid prospects. Unless this is

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done, time and energy is wasted in trying to sell to people who cannot or will not
purchase the product or service.

There are several factors to consider while qualifying a prospect. One approach to
qualifying often called MAN (Money, Authority and Need) approach is given below:
Money: Does the prospect have the money or resources to purchase a product or
service? Ability to pay is very critical factor in qualifying a prospect. The sales
people must be familiar with financial resources of a prospect.

Authority: Does the prospect have the authority to make commitment? This is a
particular concern when dealing with corporation, government agencies or other
large organizations. Even while selling to a married couple, it may be difficult to
identify who actually makes the purchase decision. A sales person must identify the
key decision maker early to economise on selling time more effectively.

Need: Does the prospect need the product or service? If a sales person cannot
establish that the customer will benefit from purchasing a product or service, there
is no reason to waste a sales call. The prospect either will refuse the offer or will
end up dissatisfied with the purchase. Before proceeding further the sales person
should first appraise whether money, authority and need exist with the prospect.

2. Pre-approach
It involves developing an understanding about the prospective buyers and qualifying
them to determine their needs, problems, preferences etc. Pre-approaching avoids the
wastage of time and makes a ground for approach

Four necessary steps of pre-approach are:

a. It should disclose the party need and ability to buy.
b. It should provide information that will enable the seller to tailor the
presentation to the prospect.

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c. It should provide information that may keep the sales person from making
serious tactical errors during the presentation.
d. Finally, a good pre-approached increases the sales person confidence and
makes him confident to handle whatever may arise during the sales.

3. Approach
The manner in which a salesperson contacts a potential customer is called approach. the
purpose is to gather information about the buyer‘s needs and objectives. It is important
to create a favorable first impression and build rapport with prospective customer
When the sales person has the name of the prospect and adequate pre-approach
information, the next step is the actual approach. It frequently makes or breaks the
entire presentation. If the approach fails, the sales person often does not get a chance to
give a presentation or demonstration. It gets the prospect attention, it immediately
inspires interest in hearing more about the proposition, and it makes easy transition
into the demonstration phase.
Four basic approaches are in common use:
a. The introductory approach, the sales person introduces himself to the prospect and
states what company he represents.
b. The product consists of handling the product to prospect with little conversation. It
can be most effective when the product is unique and creates interest on sight.
c. The sales person starts the sale in a consumer-benefit approach by informing the
prospect of what the firm can provide in benefits. In other words, directs the prospects
attention toward the benefits the firm has to deliver.
d. Lastly, referral approach successful in getting an audience with prospect who is
difficult to see directly. It consists of obtaining the permission of a past or present
customer to use his or her name as a reference in meeting a new prospect.

4. Presentation and demonstration

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The demonstration is the core of the selling process. The sales person actually transmits
the information and attempts to persuade the prospect through product demonstration
to make a customer.
Two factors should be taken into consideration in preparing an effective product
demonstration:
i) The demonstration should be carefully rehearsed to reduce the possibility of even a
minor malfunction.
ii) The demonstration should be designed to give customers ‗hand on‘ experience with
the product wherever possible.
For example an industrial sales representative might arrange a demonstration before
the purchaser‘s technical personnel.

Roles of sales person during the presentation:

 Attract and hold the prospect‘s attention
 Stimulate interest in the product.
 Spark a desire for the product.
 Listen and respond to the prospect questions and comments.

5 Handling objections
All sales person confront sales resistance i.e. actions or statements by a prospects that
postpone, hinder or prevent the completion of the sale. Normally sales resistance takes
the form of an objection which can be classified as stated or hidden. Prospects may state
their objections to a proposition openly and give the sales person a chance to answer
them. This is an ideal situation because everything is out in the open and the sales
person does not need to read the prospect‘s mind. Unfortunately, in many instances
prospects hide their real reasons for not buying. Beside having hidden objections, their
stated objection may be phoney. Unless one can determine the real barrier to the sale
one shall not be able to overcome it. There are two major techniques for discovering
hidden objections. One is to keep the prospect talking by asking probing questions. The
other is to use insights gained through experience in selling the product, combined with
a knowledge of the prospects situation, to perceive the hidden objection. Often objection

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to price and product are also faced by sales person either in a form of unaffordable or
too high price. Product objections can be answered best when sales people have
extensive product knowledge of both their own products and competitors. Many times
prospects may be misinformed or may not understand some of the technical aspects of
the proposition. In this case, the sales person should provide additional information.
Even the prospects objections can be met simply and effectively by altering the product
to suit the customer.

6. Closing
After having answered and overcome objections, it is the stage for sales person to ask for
the order from the prospects. The entire effort is wasted unless the sales person can get
the prospect to agree to buy the product. There are several closing techniques which are
being used by sales person in India. Sales person should select among these technique
one that fits the specific prospect and selling situation. Now we would discuss few
effective closing techniques. In action close technique the sales person take an action
that will complete the sale e.g. in case of high priced products like Motorcar,
photocopier or industrial product the sales person may negotiate with the financial
institution for financial assistance for the prospects.

The gift close technique provides the prospect with an added incentive for taking
immediate buying action. In one more yes close techniques, the sales persons restates
the benefits of the products in a series of questions that will result in positive responses
by the prospects. The process may result in an order.

The direct close is clear and simple technique, many sales persons feel that this is the
best approach for closing, especially if there are strong positive buying motives, the sales
person will summarise the major points that were made during presentation to the
prospects prior to asking for the sale.

Experienced sales people always try to close early. If they are not successful, they
continue the presentation and then try a different closing technique. Good sales person

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know that if they have successfully completed all of the earlier steps, then the prospect is
worth an extra effort at closing. In most cases this simply means switching to a different
type of close. Closing is the most important aspect of the sales process. Unless the sales
person can close the sale, the other steps in the sales process are meaningless.

7. Follow-up
The selling process is not completed by merely making the sale, as generally assumed by
many sales person. After sales activities are important part of the whole selling process.
Effective sales-follow-up reduces the buyer‘s doubt about the product or services and
improves the chance that the person will buy again in the future. In addition to post-sale
activities, sales person are also required to maintain good customer relations.

Now-a-days many companies are evolving specific policies and practices to ensure that
customer‘s needs are not neglected. No matter how efficient a company is, there are
always some customer complaints. The complaint should be taken seriously and
handled with concern. The customer must know that the company cares about
maintaining good customer relations. Reasonably frequent contacts with the present
customers are, an expected part of the sales person‘s job. For important customers,
personal visit are appropriate. Letters, notes, phone calls, greetings are also good ways
to keep in touch with customers. Many good business house also offer customer
newsletter.
Successful sales person never stop serving customers. In addition to handling
complaints, they keep customer informed about the latest products or services, fulfil
reasonable request, and provide other forms of assistance. The sales people should also
appreciate the customer by thanking customers for their business. Small gifts can be
given after the sale and at appropriate times during the year. Sales person should try to
make self-analysis for evaluating their own selling performance and methods. A Sales
person should analyse every call to determine what factors influenced its eventual
outcome. Self-analysis is a very useful tool in improving overall sales effectiveness

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Emerging Trends in Sales Management

To be successful in a changing market environment, it is important that sales managers
understand the importance of emerging trends in the following areas

1. Global Perspective
Global competition is intensifying. Domestic companies who never thought about
foreign competitors are suddenly finding them in their backyard. This is a challenge
which sales managers and salesperson must take on, they have to improve their
personal selling efforts not only in their countries but also in foreign countries. Selling
goods and services in global markets presents a challenge due to differences in culture,
language, needs and requirements.

2. Technological Revolution
Digital revolution and management information system have greatly increased the
capabilities of consumers and marketing organizations. Consumer today can get
information about products, compare it with other brand, place an order and place an
order instantly over the internet. This has led to a different kind of sales force who
collects information about internet users, markets and prospects of internet buyers. It is
mandatory for all companies to have their website now.

3. Customer Relationship Management [CRM]

Combining information technology with relationship marketing has resulted in
customer relationship management. Interestingly, the concept of relationship marketing
came about earlier by bringing quality, customer service and marketing together.

Relationship marketing aims in building long term satisfying relations with key
customers distributors and suppliers in order to earn and retain their long term
preference and business. CRM enable companies to provide excellent real-time service
by focusing on meeting the individual needs of each valued customer, through the use of
CRM software packages.

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4. Sales Force Diversity

The demographic characteristics of sales force is changing and becoming more varied.
For example, more and more women are taking up careers in sales management and
selling. Also the education level of sales people is going up most of them holding a
college degree or a post graduate degree. Sales managers now have to handle a sales
force of these varied demographic, expectations of each and every individual is different
and sales manager needs to use different motivational tools against each one of them.

5. Managing Multi-Channels
Multi-channel marketing system occurs when organization uses two or more marketing
channels to target one or more customer segments. Major benefits of multi-channel
marketing system are:
a. Lower channel cost
b. Increased market coverage
c. Customized selling

6. Ethical and Social Issues

Sales managers have ethical and social responsibilities. Sales people face ethical issues
such as bribery, deception (or misleading) and high pressure sales tactics. Today‘s sales
managers have no choice but to ensure ethical standards from sales force otherwise they
may be out of business or even land up in legal problems.

Elementary study of sales organizations

The structure of sales organisation differs from company to company. There may be a
very small and simple one with only a few salesmen. At the other extreme, there may be
quite complex, with many sub-organisations, based upon divisions, according to
territory, product and marketing-functions. The structure of the sales-organisation,
usually depends upon the following factors:
(i) Nature and size of the firm.
(ii) Methods of distribution, adopted by the firm.
(iii) Selling-policies of the firm.

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(iv) Financial conditions of the firm.

(v) Personality of the sales manager.
The other dimension of the sales-organisation-structure, is related to
(i) What shall be the status of the sales manager?
(ii) What functions shall his department perform?
(iii) What shall be the strength of the department? etc.

Qualities and responsibilities of sales manager

Desired traits may be grouped under four categories :
(1) Physical Qualities : Health, Posture, Voice, Appearance
(2) Mental Qualities : Alertness, Imagination, Self confidence, Initiative, Memory, Observation,
Cheerfulness
(3) Social Qualities : Ability and eagerness to meet people, Effective speech, Courtesy, Tact, Co-
operation, Good manner, Patience and tolerance
(4) Character Qualities : Honesty, Courage, Loyalty, Determination

Ten Greate Qualities of a Sales Manager

1) Passion. This is also one of the top qualities of a master closer and the only one that
can‘t be taught. Without a passion for the home building industry, it‘s impossible to lead
and inspire a team.
2) Integrity. Combined with passion, these are the two most important qualities for a
sales manager. ―They need that core,‖ Tarullo says. ―If they don‘t have those, they
shouldn‘t be in sales management.‖
3) Positive attitude. It‘s up to a builder‘s leadership to put smiles on the faces of the
sales team and set the tone for the company.
4) Coaching. Seventy percent of a sales manager‘s time should be spent coaching,
either in groups or one on one, Tarullo says. Any sales manager who says the workload
doesn‘t allow that kind of time with the staff needs to examine how the day is being
spent and ditch or delegate any activity that doesn‘t affect lead generation or conversion.

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5) Leadership by example. ―The sales manager should be out on the sales floor with
his people,‖ says Jim Capaldi, director of sales for the Ventura division of Standard
Pacific Homes and author of The Ultimate New Home Sales Success Manual. ―That‘s
where you‘re most productive. Lead by example, make them accountable, push them,
and get them out of their comfort zone.‖
6) Loyalty. Sales managers need to go to bat for their sales team members, says Debbie
Dompke, sales manager for Chicago-based Lexington Homes. ―Let them know you‘re on
their side,‖ she says. ―When they know you‘re sincere, it‘s amazing the work ethic you‘ll
get in return.‖
7) Availability. Dallas-based sales trainer Bob Hafer says paperwork has to be done,
but it can‘t be used as an excuse ―to not do the tough stuff.‖ It‘s easier than dealing with
people, to be sure, he says, adding, ―Administrative tasks never talk back to you.‖ When
he was a sales manager, he got to work at 7 a.m. and spent two hours on paperwork
before the phone started ringing. Then, when the sales centers opened, he was available
to work with his sales teams in the field.
8) Motivation. This includes encouragement and recognition. Dompke says she does
this in ―so many ways—contests, games, dancing, singing, dressing up. You laugh
together and play together.‖
9) Continuous learning. Doctors, accountants, attorneys, and other professionals
keep learning their whole lives in order to keep their skills up to date. Sales managers
need to do likewise. ―When you don‘t grow,‖ Capaldi says, ―you leave the door open for
someone else.‖
10) Listening and communication. This is an underpinning for most of the other
qualities. You can‘t be a good coach or motivator if you‘re not a good communicator; and
you can‘t continuously learn, lead by example, or demonstrate loyalty without being a
good listener.

Types of sales organizations

• Sales organisation is a part of the total enterprise dealing with sales activities.
• It consists of a group of people engaged in selling activities.

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• It works for the attainment of common objectives of selling.

• There exist formal and informal relationships between persons engaged in selling
activities.
• It defines the duties, responsibilities and rights of people in the selling jobs.

There are four main types of sales organizational structures:

1. Functional Structure
2. Geographic Structure
3. Market-Based Structure
4. Product Sales Force Structure

1. Functional Structure

Function structure refers to the sales organization structure that focuses on

specialization within the marketing team. This means that everyone has their own
purpose to fulfill within the team based on their specialties, interests, and other factors.

Having a sales team that runs by a functional structure is more efficient, but it does
come with a plethora of problems. It may sound great to have each person specialize in
their tasks, but sales is a very interwoven department. This means that people need to
coordinate a lot in a sales team that runs by a functional structure.

2. Geographic Structure

Geographic sales structures sound like what they are. Sales teams that run by this
structure organize by location.

So, let's say that you have some clients in Atlanta, others in Boston, and others in New
York. With a geographic organizational structure, you're likely to break your sales team
between these cities. This is also known as a territorial sales force structure.

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3. Market-Based Structure

A market-based structure, also known as a customer sales force structure, refers to a

sales team that is organized by customers or industry. More likely, they're grouped by
industry.

By placing your sales reps in a specific industry, you're giving them a chance to
specialize in that industry and the needs of the companies within that industry. Plus, by
becoming experts, your sales reps will have a better chance to grow stronger
relationships with your current and potential clients.

For companies that aren't focused on one industry or a few industries, it's likely that a
market-based structure would be advantageous. This is especially given that higher-ups
on the management team can bounce around from industry to industry that the sales
reps are specialized in.

By organizing your team strategically in this way, you'll be able to make more sales and
build stronger bonds with your clients.

Unfortunately, market-based structures come with higher costs and difficulties in

sorting the location of different companies. Obviously, companies don't base their
location on what industry they're in (entirely). This means that some tech companies are
in San Francisco, others are in Nashville, and others are in Minnesota.

4. Product Sales Force Structure

The product sales force structure focuses on the products that clients make. This can be
based on individual products or product types. This organizational structure is the most
specialized of all of these options.

With this kind of sales organizational structure, you may find that your sales reps are
more attuned to how to sell to certain companies based on the products they have. In

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fact, you'll have sales reps that can handle one product type at once company and the
same product type at another company.

This kind of specialization is great if your company focuses on one industry, but it can
become a little much when you're bringing multiple industries with multiple products in
at once.

Types of Sales Persons

Delivery sales person: The primary job of the delivery sales person is to deliver the
product e.g. soft drink, bread, milk etc. The selling responsibilities are secondary. Good
service and a pleasant personality may lead to more sales.

Inside order taker: The retail sales person standing behind acounter is an inside rder
taker. The customer comes to the sales person with the intention to buy a product or
service, the sales person only serves him or her. The sales person may use suggestion
selling but ordinarily cannot do much more.

Outside order taker: The soap or spices sales person calling on retailer is an outside
order taker. They do little creative selling. In contract with store personnel these
representatives actually may be discouraged from doing any hard selling. That task is
left to executives higher in the hierarchy.

Missionary sales people: These sales persons are not expected or permitted to solicit
an order. Their job is to build goodwill or to educate actual or potential user or provide
services for the customers, as in the case of Medical representatives, working for the
pharmaceutical company.

Consultative sales person: Consultative sales are characterized by the product or

service that is sold at the higher level of an organization e.g. computer system or
management consultancy service. The decision to purchase such products involves
higher capital outlay thus sales job requires a low key, low pressure approach by the

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sales person. It would also require a very strong knowledge about product, patience to
discuss product with several people of organization and potential benefits to the user.
Even at times when the progress of sales slows down representative has to make creative
and sensitive efforts to resume interest but without appearing to exert pressure on the
prospect.

Technical sales personnel: The most distinctive characteristic of technical sales is

the product knowledge required by its sales person, unlike the consultative sales, where
sophistication in organization relationship and persuasive ability are sales persons‘ most
valuable assets. Even time required to sell the product is relatively less than
consultative sales. Most of the technical purchasing requires approval of several
people but only one or two people with technical knowledge influence decision. If the
sales representative is able to satisfy these people with product characteristics,
application, installation process, approval from higher management is usually
forthcoming. The technical sales persons though not strangers to the process of making
a sale, are trained to utilize the rational approach, by going into details of product utility
and features.

Commercial sales person: This field generally includes nontechnical sales to

business, industry, government and non-profit organization e.g. office equipment,
wholesale goods, building products, business services and others. Unlike the previous
two types, it is customary for the commercial sales person to make sales on first or
second call. The process stresses approach to right person (decision maker),
making a smooth presentation and closing the sales.
The field is composed of order takers, to follow up and maintenance of accounts and
order getter, to develop new accounts. Since these require different approaches, they
normally require different personality traits e.g. the order getter are more aggressive
and more highly motivated.

Direct sales people: Direct sales are primarily concerned with the sales of products
and services to ultimate consumers e.g. restaurants, door to door sales, insurance,
encyclopaedias, magazines etc. There is normally some emotional appeal associated

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with this type of selling, thus sales persons are required to possess strong persuasive
ability. Often length of time to close sales is shortest in the case of above product
categories. In fact, sales person are trained to close the sales on the first visit because it
is felt if consumers are given time, they will either cool off from buying or will buy from
competitor.

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