Page 10 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management
Notes
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More “results related” than “process related” are information regarding the sales funnel and the
hit rate.
Sales reporting can provide metrics for sales management compensation. Rewarding the best
managers without accurate and reliable sales reports is not objective.
Also, sales reports are made for internal use for top management. If other divisions’ compensation
plan depends on final results, it’s needed to present results of sales department’s work to other
departments.
Finally, sales reports are required for investors, partners and government, so the sales
management system should have advanced reporting capabilities to satisfy the needs of different
stakeholders.
1.2 Sales Management and Control
Control is a function of every management to ensure that operations are being carried out as per
the plan to achieve the objectives. Sales control ensures the achievement of personal selling
objectives. Sales coordination is very essential to ensure proper conduct of sales operations by
different functionaries in the field.
The sales manager’s position in the company can be compared to the commander of an army
unit on the war front; his success or failure will decide the fate of the war. The sales manager has
to produce tangible results and for this to happen he has to have a clear view of his job
responsibility. His position is unique in the sense that he represents the company in the market
which treats him as the company. Sales control is the most important task for the sales department
of a company. It is the control tool for ensuring that the marketing activities of a company are
directed towards the marketing objectives.
Table 1.1: Types of Sales Control
Type of Prime Purpose of Control Approaches
Control Responsibility
1 Annual plan Top level managers To examine whether the - Sales analysis
control planned results are being - Market shares analysis
achieved
- Marketing expenses to
sales ratio
2 Profitability Sales controller To examine where the Customer attitude
control company is making or Tracking profitability by
losing money - Product territory
- Market share
- Trade channel
- Order size
- Sales audit
Steps in Designing a Sales Control System
1. Objective setting
2. Designing different control levels
3. Designing a reporting system and a feedback system
4. Deciding tools and techniques of control
5. Variance analysis and reasons thereof