SALES MANAGEMENT

SALES CONTROL

Sales Management and Control

Control is a part of the management as are other functions like Planning, Organising, and Coordinating The purpose is to ensure that the goals and objectives of the organisation are achieved The various phases are as under;

a. Review Situation - To review the situation with respect to past, present and future and get the following answers; 1. Where are we? 2. How did we reach at this point? 3. Where are we going or want to go?

4. How to do?
b. Set quantitative standards set standards so that there is some acceptable range of variations as well

SALES MANAGEMENT

Sales Management and Control

c. Gathering and processing data on actual performance 1. Decide what informations are required to be submitted by the salesman 2. Add the tasks, whatever you think should be done, and make a proforma so that it is easier for salesmen 3. Screen the informations from time to time and retain only what are required and add what are further necessary for the organisation d. Evaluation of the performance

1. Compare actual with standards or targets/goals

2. Find out controllable and un-controllable factors which result in after the study 3. For controllable factors decide action to be taken and start

4. For un-controllable factors you need to probably adjust in your plans or policies

SALES MANAGEMENT
FORMAL & INFORMAL CONTROL

Sales Management and Control

When the organisation is small, the executive or the incharge has everything on his fingertips and he has INFORMAL Control. The situation however changes when the organisations become large and you have different people to look after various functions and areas and the information reaches you late In such a situation Formal control is necessary for effective management of growing needs and provide for workable decisions and formulating appropriate policies 1. Written Sales Policy written marketing and sales policies for people to understand and follow. The working beyond the policies are allowed but then the person has to wait for instructions like credit policy, commitment for investments, change of packing standards, changes in design etc. 2. Policy formulation and review Change in policies are generally appreciated since it shows the management is dynamic and changes with situation and circumstances. Sometimes initially the quantitative data are not set clearly or based on correct informations, these can be changed and accordingly changes in policy are done

SALES MANAGEMENT

Sales Management and Control

3. Formal control over sales volume though forecast is made on the basis of potential sales expected by the company (based on various assumptions), this may be reviewed from time to time (may be quarterly) to revise the volume. This is done after studying the actual sales, competitors data, market share, industry and customers purchasing trends etc. 4. Budgetary control means extension of controls from volumes to other factors like, Revenue, margins, expenses and profits. The management may sometimes ask for profitability for each and every large customers, distributors or area. This will help them to take certain decisions for that particular segment.

SALES MANAGEMENT

Sales Management and Control

SALES MANAGEMENT IN THE NEW AND CHANGING WORLD OF BUSINESS

Change of job function 1. Analyse job functions of people working under you and see what are they really do 2. Divide into the routine and productive functions. Make sure that the productive functions get priority over the routine functions 3. If possible assign non-productive functions to a new recruit specifically for doing a clerical function 4. By doing this the executive would be able to do more productive work and utilise time effectively in building relationship with the existing customers and development of new business

SALES MANAGEMENT

Sales Management and Control

Develop strategic partnership - Rather than concentrate only on actual selling, the approach should be to; 1. Solve customers problems 2. Gather as much information about customer and then apply to build a unique solution in solving customers problems 3. Gather as much information as possible about market and competitors, and use this information while talking to your customers so that customers are always willing to talk to you and when ever you get opportunity you may take advantage in your/your companys favour. 4. Must know profitability of the company from every customer. The high profit customers must be given more time as also taken care of better. Of course this does not mean that other customers should be avoided

SALES MANAGEMENT

Sales Management and Control

SALES MANAGEMENT IN THE NEW AND CHANGING WORLD OF BUSINESS Get and keep the best of people 1. Every person that you employ, should be best paid and must be happy. While this is true, why not the organisation also keep the best of people to get best results. For this you must expect; a. Commitment from employees b. Utilisation of his skills, energy, endurance and capacity to the best 2. And for that then he must be appraised for his performance from time to time

Time Management systems 1. Look out for programmes that trigger a warning signal as soon as there is a missing report or order or information. Also there might be a missing orders by some customers who places orders regularly. If this is missing, your system should give you a warning signal and check out the reason for it.

SALES MANAGEMENT
Website integration

Sales Management and Control

1. Develop a good site after giving a thorough analysis of what you expect and what you should get from it. It is the best way to provide corporate information and basic strategies of the company. It can also provide the mission and goals of the organisation. Integrate with other departments, like sales, marketing, personnel, shares department etc 2. This helps you in keeping good relations in the trade and with customers. This also helps in providing information to prospective buyers or information gatherers. If you are asking a feedback from the visitor, do not do it for the sake of just doing it. Utilise the feedback or proper understanding the market/customer The Bottom Line 1. The customers today are more demanding and expect good service 2. While it is imperative that you provide best of the services, it is also equally important to know how much that customer contributes to your bottom line 3. The customer should also know his expectations and the value to supplier

SALES MANAGEMENT
THE PROFESSIONAL APPROACH

Sales Management and Control

Be an entrepreneur and not just an employee Think different with the change of companys position in the market place, change in consumer behaviour, improvement in buying habits etc, what can you do next

The competition is getting stiffer and life tougher, do not just sit back or lie down.

What should you do?

Stop selling to those customers who buy on price alone By not making profits, we may disappear In the short run the customer may be happy, but in the long run, there would not be any good manufacturer left in the market

SALES MANAGEMENT

Sales Management and Control

You and customer, both have to understand the realities and true cost of doing business. The customers understand the true cost of giving a service and would be willing to pay for it. The seller therefore must focus on these values. Activity based Management and Activity Based Costing must be understood by all executives. The discussions with customers should be on this basis and the threat of losing an order should not bother as the company has decided to do business on profits and NOT FOR CHARITY

The executives need to develop these values in distributors, dealers or customers

Please understand that customers are willing to pay for the services if they understand or are explained properly

SALES MANAGEMENT

Sales Management and Control

New Sales Talks The strategy should be to start defining your CORE competencies (group of skills like technical competency, technical support, inventory and logistic management or a knowledge based sales and support team. Success in sales is beyond product features, benefits, product knowledge, service etc. The modern salesman would be who knows customers business and create an insider level of involvement and trust.

Focus on customers needs

Develop customer relationship Ensure satisfaction Review customers business and compare actual results with planned activities and joint sales calls Performance appraisals of customers

SALES MANAGEMENT

Sales Management and Control

Develop skills 1. Planning and forecasting

2. Assessing potential
3. Time management 4. Customer response 5. New economy and technical tools Do not lose opportunities to learn