Module -4

Sales manager & Sales Person

Sales Manager:
A sales manager is the head and heart of sales organization. He is the person
who steers the wheels of the organization towards a definite destination.
He is that person who manages the sales-the life blood of business. It is he
who plans organizes, directs, motivates, coordinates and controls the activities of the
selling department for profit to the owner and satisfaction to the customers. In short,
sales manager is the hub of sales administrative wheel.

Functions of Sales Manager

1. Product development:
Product development, otherwise known as merchandising, is the foundation for
successful marketing. It covers a wide variety of activities of planning and development such
as introduction of new products, bringing home new uses or applications for existing
products; modification of existing product by style, colour, design; elimination of obsolete
products; standardization of products as to quality, size, design, packaging; observation of
competitive products for self improvement in terms of cost performance, name and the like.
Basically, these are the responsibilities of manufacturing and research and
development department. However, integrated approach solves the problems effectively.
Hence, sales manager should welcome manufacturing and research and development
experts for his own good and the good of the firm.

2. Sales planning:
Sales manager is to set sales objectives and determine the sales and advertising
activities necessary to attain the established goals. Relying on marketing research, he
decides of sales quantum, type, sales efforts, time and costs.
To control expense and plan for profit, he makes budgeting of sales with the advice
of marketing research, accounting and the budgeting staff.
These budget estimates are split conveniently for effective control by territory,
product, salesman and the time schedule. Sales planning involve good deal of coordinating
the activities of salesmen, dealers, advertising agencies, people of physical distribution,
sales-personnel, production scheduling, and inventories and so on.

3. Marketing research:
Sales manager is accountable for gathering, recording, analysing and interpreting the
facts about the character, quantity and trend of demand through marketing research.
Marketing research also covers sales analysis and research, statistical studies of sales by
products, territories, distributors, seasons, salesmen, costs and expenses.
 It involves product, consumer, distribution, physical distribution and so on. It is
marketing research that provides up-to-date and authentic knowledge of markets,
consumer preferences, buying habits and product acceptance that are fundamental to the
success of sales administration.

4. Physical distribution:
Though it is the responsibility that is shouldered by traffic and shipping departments,
physical distribution of products is the basic responsibility of the sales manager. Here, the
sales manager coordinates the sales with the traffic on problems concerned with physical
handling of products from the points of plant to the points of consumers.

This covers crucial problems of costs of transportation, methods of transportation,

shipping containers, warehouse locations, handling costs, inventories, and use of variant
types of warehouse facilities, reduction of demurrage and damage claims and so on.
Transportation and warehousing are the functions of logistics having unique place in
the mechanism of marketing functions, creating place and time utilities.

5. Sales policies:
Framing and administration of sales policies is a major responsibility of every sales
manager by very nature. Sales policies are the guidelines set up by the management within
which the company is to seek to reach its personal selling objectives. These sales policies
can be broadly classified into three areas namely, product, distribution, and price.
These sales policies regulate the relationships between the salesmen, distributors,
dealers and customers. They hover round prices terms of sale, claims and adjustments,
product quality, methods of distribution, brands, credit and collections, mechanical service,
freight payment, advertising, promotion, reciprocity, sales personnel, branch operation and
delivery.

6. Sales personnel:
Sales manager is responsible for recruiting, selecting, and training the sales-force, its
compensation, supervision, motivation and control. Sales manager determines the extent of
salesman’s territories and aids them in covering their areas more effectively and better
utilizing their time and energy.
He provides the salesman with sales equipment in the form of portfolios, models,
demonstrating devices and audio-visual aids. Thus, manpower development and
maintenance at its peak is his task that pays rich dividends.
In this responsibility, he is assisted by specialized staff known for recruitment,
selection, training, compensation, promotion and so on. Sales-force is the centre of sales
management which is always kept kicking and alive and agile.
7. Financing the sales:
Sales of the organisation are sure to take two forms namely, cash and credit. Of late,
credit is forming the lion’s share of the total transactions. This necessitates the sales
executive to appropriate the funds for marketing in conjunction with the treasurer or the
credit and finance department.
Gaps created by credit sales, inventories built-up in anticipation of seasonal demand,
advertising and sales-promotion campaign expenses, sales on consignment basis, all need
arrangement for short-term funds.
Sales manager is to consult and confer and deliberate with finance executives, credit
and account department people to decide about the credit sales, installment sales so that
deferred payment plans-length of credit period rewards for prompt payment or penalty for
ever due payment and the like.

8. Sales-promotion and advertising:

Advertising and sales- promotion activities are of paramount importance’s that assist
in strengthening the hands of sales-force. Therefore, the sales manager is responsible for
advertising and sales-promotion to create maintain and extend the consumer demand and
to aid the salesmen and the middlemen selling the company products.
He approves advertising plans, schedules, appropriations, advertising media, special
promotions and cooperative advertising with middlemen. Sales manager directs the
personnel of sales- promotion with regard to the salesmen’s visual aids, demonstrating
devices, sales kits, sales contests, direct-mail advertising, sales publication, displays,
exhibitions, motion pictures and sales training programmes for the salesmen and the
dealers.

9. Distributor and Dealer relations:

Cooperation, trust and goodwill of distributors and dealers are of grass-root
importance in successful sales efforts undertaken by the sales organizations. Sales manager,
along with public relation department, tries to establish, maintain and extend sound
relation with dealers and distributors.
Good distributor/dealer relations include sales assistance, mechanical service,
delivery, adjustments, informing middlemen about the products services policies and
practices of the company.
It also implies helping dealer with sales training program, sales equipment, plans and
sales management methods, sales-promotion and advertising, distribution policies so as to
earn loyalty and goodwill of dealers.

10. Mechanical services:

Those sales organizations that sell mechanical products that call for after-sale
services such as installation repairs and maintenance they should have adequate and
satisfactory arrangements for such mechanical services.
 These are concerned with mechanical service policies, personnel, equipment and
facilities, costs and services rendered to the consumers by the dealers.
Sales manager with the aid of service department personnel plans program of
service education to train the manufacturer’s salesmen, dealers’ service men and the
consumers.
Their planned service policies are to be effectively implemented so that the
customers do not suffer though the company has made all the arrangements. In other
words, the benefits of such service facilities should reach the customers.

Functions of Sales Person:

The duties and responsibilities of a salesman differ from one business to another
depending upon the nature of the business, the size of the business, the type of selling job,
the sales policies of the concern, etc. However, there are certain duties and responsibilities
which are common to all types of business.

1. Selling: The fundamental duty of a salesman is selling. This duty includes meeting the
prospects, presenting and demonstrating the products, inducing the prospects to buy,
taking orders and effecting sales.

2. Guiding the buyers: A salesman should guide the buyers in buying the goods they want.

3. Attending to complaints: A salesman should attend to the complaints of the customers

immediately and try to settle their grievances quickly and sincerely.

4. Collection of bills: Sometimes, a salesman may be required to collect the outstanding bills
relating to the goods sold by him. In such a case, he has to collect the bills and remit the
amount to his firm.

5. Collection of credit information: A salesman may, sometimes, be required to collect

information about the credit-worthiness of the customers. In such a case, he has to collect
detailed information and submit it to his firm in time.
6. Reporting: A salesman, especially a traveling salesman, is required to send daily, weekly
or monthly reports to his firm, providing information about the calls made, sales effected,
services rendered, route schedule, expenses incurred, business conditions, competition, if
any, etc.

7. Organizing: A salesman, i.e., a traveling salesman, is required to organize his tour

programme. He has to prepare the route and time schedules for his tour so as to
systematize his sales efforts.
8. Attending sales meetings: A salesman is required to attend the sales meetings convened
by his employer at periodical intervals to discuss the marketing problems, sales promotion
activities, sales policies, etc.

9. Touring: A traveling salesman has to undertake touring regularly to cover the sales
territories assigned to him.

10. Arranging for packing and delivery: A salesman, i.e., a counter salesman, has to arrange
for the packing of the goods sold and the delivery of the packages to the buyers.

11. Window and counter displays: A salesman, i.e., an indoor or counter salesman, has to
arrange for the window and counter displays of the products in an attractive manner so as
to attract or induce the prospects to buy.

12. Promotion of goodwill: Every salesman has to build up satisfied clientele (i.e.,
customers) for his employer and thereby promote the goodwill of his firm.

13. Recruiting and Training: Recruiting new salesmen, imparting training, by accompanying
them while making sales calls.

14. Working with Middlemen: Salesmen establish direct relations with middlemen —
distributors, wholesalers, etc., and collect market information and pass it on to their firm.

Types of Sales Managers:

Organizations , particularly large ones, have many levels. Many firms have multi divisions,
both domestic and international. Each division can have an organizational hierarchy. Three
levels in organizational hierarchy are shown:
1. Administrative sales manager:

Administrative sales managers are found normally in highly integrated sales

organisations selling multiple lines of products in national and international markets. He is
known by alternative titles such as ‘vice president’, ‘in-charge of sales’, ‘director of
marketing’, ‘general sales manager’ and ‘marketing manager’.

He is primarily concerned with coordination and integration of all the company

activities relevant to marketing. He is not an authority on design, engineering,
manufacturing and finance; contrary to these, he is an authority on sales and profits. It does
not mean, however, that he can be aloof from other departments and their functions.

In addition to the crucial task of coordinating marketing with other company

activities, he is to coordinate the activities of his own sales organisation within and with
outside advertising and sales counsel. He is responsible for sales planning that involves
integration of sales personnel, merchandising, advertising and promotion, financing,
distribution network.

Planning also includes the determination of the functions of sales organisation,

delegation of responsibilities, personnel selection, and performance evaluation. He frames
the policies and strategies on the prices, distribution, relations with dealers, service,
advertising and sales-promotion.

2. Field sales manager:

The field sales manager or operating sales manager is a line sales executive reporting
directly to the administrative sales manager. Operative sales manager works under the
direction, guidance and supervision of the general sales manager.

He is mainly responsible for the effective implementation of sales plans and policies
developed by the administrative sales manager.

He is known for personal direction and control of sales personnel and hence, spends
major portion of his time in the field supervision of the work of sales-force. Manpower
maintenance of the sales organisation is the basic task of this executive. He is to recruit,
select, train, supervise, stimulate, evaluate, equip, control and route the sales-force.

Field sales manager moves with salesmen on visits of importance. He assigns sales
territories and controls activities of salesmen through setting the standards of sales
achievements, analysing the sales reports, holding the sales meeting, supervising the
advertising and sales-promotion cooperation with dealers, directing sales contests,
supervising warehousing inventories, dealer relations and coordinating territorial and home
office activities.

Thus, a field sales manager provides the administrative sales manager with the latest
information relating to the view points of dealers and consumers on company, company
products, policies, and practices with facts on market trends, competitors, distributors and
individual salesman.

3. Administrative-cum-field sales manager:

In case of smaller organisations, we come across such sales manager who combines
the functions of administrative and executive sales officer. Generally speaking,
administration and field operations cannot go together. However, size and economy points
force many units to combine the distinct roles of administration and field operation.

As an administrator, he plans, organizes, directs and coordinates. As a field operator,

he guides and supervises and controls the activities within the sales organisation. Thus,
thinking and doing are done by the same person that goes against the very idea of
specialisation for an administrator is a ‘thinker’ and a line officer as ‘doer’.

4. Assistant sales manager:

Generally, the administrative sales manager is assisted by Assistant sales manager in

the administrative functions of planning, analysis, direction and coordination. He
coordinates the work of sales staff that is specialized in advertising, sales-promotion,
research, merchandising and dealer relations.

He may also handle sales office personnel, records and routine. He acts as the link
between the head-quarters and the field-sales-manager at distance. It is not a surprise if he
discharges the functions of field sales manager. Thus, he acts as both line and staff officer in
the sales organisation.

5. Product-line sales manager:

A company that markets variety of products has such product-line sales manager
responsible for one or group of products in the product- line. He is also known as product or
brand manager.

He is responsible not only for sales but also for production, research, product- development,
planning, advertising and profit for the product or the group of products in question. He is
to report to the Marketing manager who coordinates the work of several product sales
managers.

6. Marketing staff manager:

As the title suggests, the Marketing staff manager is not a line-officer. He is one of
the staff specialists who are delegated some of the responsibilities of administrative sales
manager. These are the specialists in the areas of marketing research, sales-promotion,
merchandising, advertising, sales planning, sales personnel, distributor/dealer relations,
sales costs, budget sales finances, traffic, sales office administration and service and the like.
These staff managers being non-line officers have no field tasks.
 These managers are accountable for analysing the needs of the marketing
organisation in respect of their specific areas of specialisation, developing plans and
recommending solutions to the problems encountered or thrown open.

7. Divisional/regional sales managers:

In all the national organisations, one comes across these Divisional or Regional sales
managers. These are also known as District sales managers who are responsible for the
delegated sales operational duties on a territorial basis.

They report to Assistant sales managers or the field sales managers who act as the
liaison officers with headquarters. The functions of Divisional or Regional sales manager are
similar to those of field sales manager who is in charge of several divisions or regions and
hence divisional or regional managers.

They are mainly responsible for maintaining the man-power in the concerned areas
by recruiting, selecting, and training, supervising, motivating and controlling the sales-force.

They are also responsible for directing branch or local office sales managers. The
divisional sales managers assist branch managers in solving their sales personnel problems,
dealer relations, warehousing and inventory, advertising and sales promotion, sales
campaigns and sales meetings.

8. Branch sales mangers:

In case of sales organisations that operate branches or local sales offices in major
cities of the country, one is to come across such Branch sales managers. Branch sales
manager is a line executive responsible for the direction of a small group of salesmen calling
on consumers or dealers in the branch area.

He recruits, selects and trains, sales people with the guidance of Divisional or
Regional sales manager to whom he reports. He works along with salesmen in the field,
supervises their sales activities, holds periodic sales meetings, evaluates sales performance
and helps in key accounts. If warehouse is attached to branch, he supervises warehousing
activities too.

9. Sales supervisor:

A sales supervisor is a line sales manager who supervises normally eight to fourteen
salesmen. He is seen in branch sales office of a national sales organisation having branches
all over the nation.

He is responsible to the local branch sales manager. In case there is no branch sales
manager, then he is responsible to the sales manager of the company directly. His work is to
train and motivate the salesmen under his charge.

His supervision, guidance and coaching helps in building up more confident sales
personnel. He is the key communicator in the transmission of information on sales policies
of new products, promotions and marketing programmes between the higher-ups and
individual salesmen.