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Unit 1: Introduction to Sales Management
Sales managers are entrusted with organising, planning and implementing the sales effort to Notes
achieve the corporate goals related to market share, sales volume and R.O.I.
Self Assessment
State whether True or False:
7. Most organisations use their own sales force to reach the customers.
8. The functional structure for sales management varies depending on the firm’s size and
strategy.
9. A Unit manager looks after and manages a firm’s personal selling functions.
10. The unit manager is often referred to as the manager-in-training with interaction taking
place at the customer level.
11. Tasks are allocated depending upon the capabilities and capacities of the sales personnel.
1.5 Key Decision Areas in Sales Management
Important decision areas in sales management are deciding upon:
1. The type and quality of sales personnel: By this we mean that whether the sales person is
a product specialist or a market specialist or both. A product specialist is needed for
technical or for pharmaceutical products. A market specialist must be aware of market
characteristics and various markets.
2. The size of sales force: It is important because if we have more sales personnel, then we are
incurring more expenditure. Therefore, the number of sales person should be optimal. To
find the optimal size there are three methods:
(a) Work Load Method
(b) Incremental Method
(c) Sales Potential Method.
3. The organisation and design of sales department: There are three types of organisations:
(a) Functional Organisation
(b) Management Organisation
(c) Territorial Organisation.
Which type of organisation to follow will depend on our choice.
4. The territory design: There are a number of ways to design a territory.
(a) Clover Leaf design of territory: Here the territory is designed in the form of a clover
leaf.
(b) Hop Scotch Method: Here the territory is designed in the form of spokes which radiate
form the hub (residence).
5. The recruitment and training procedure: This deals with recruitment and training of the
people. The recruitment could be within or outside the organisation. Similarly, training
could be on the job training, off the job training and classroom training.
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