Page 52 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes (iv) Successful companies keep flourishing and keep coming up and vice versa.
(v) It produces the most aggressive competition and a close watch is to be kept on
all the Four P's.

(vi) Personals selling plays an important part.

Did u know? Satisfaction strategies, which include ways to maintain or improve customer
satisfaction levels such as reducing delivery time from three days to 24 hours.

4.2 Setting Sales Objectives (Step II)

Objectives are standards against which performance is measured. These are of two types –
qualitative objectives and quantitative objectives. Qualitative objectives are long term whereas
quantitative objectives are short term. The objectives are set keeping in mind the competitive
situation of the company.
A company selling high value technical household products expects its salesmen to carry out
entire sales functions and practical aspects also. The quality of sales force in this case will be
different to those who only coordinate. Qualitative objectives are long term and are derived
from the marketing and sales policies of the company.
Quantitative objectives on the other hand relate to operating results. These are also dependent on
the competitive situation and the corporate goals and vary over time. Goals are set in terms of:
1. Sales volume
2. Sales cost

3. Accounts receivable
4. Inventory levels
5. Dealer support
6. Feedback input.

!
Caution The dynamics of strategy and performance concerns the 'content' of strategy-
initiatives, choices, policies and decisions adopted in an attempt to improve performance,
and the results that arise from these managerial behaviors.

4.3 Designing Sales Strategy (Step III)

After the market analysis has been carried out which involves the study of environmental
factors, the SWOT analysis is done. The objectives are set and then the sales strategy is formulated
by considering:
1. The type of sales force required.
2. The size of the sales force required.
3. Territory design.
4. Channel support and coordination.
5. Transaction cost analysis.
All the above topics are being dealt with separately.

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