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Unit 4 of 4 · MBA Sem 4

Unit 4: Sales operations

Integrated Marketing Communication and Sales Management notes · PTU syllabus (MBA 923-18)

3 min read8 topics10 exam questions
On this page
  1. Unit summary
  2. The sales budget
  3. Sales territories and quotas
  4. Control of sales
  5. Sales meetings and contests
  6. Organising displays and exhibitions
  7. Qualities and functions of the sales manager
  8. Types of salesmen
  9. Customer psychology
  10. Key terms
  11. Quick revision
  12. Important questions

Unit summary

Sales operations translate plans into budgets, territories, quotas and daily selling activity. This unit covers the sales budget, territories, quotas, control of sales, sales meetings and contests, organising displays and exhibitions, the qualities and functions of the sales manager, types of salesmen and customer psychology.

After this unit you can

  • Prepare sales budgets and design territories and quotas
  • Control sales performance
  • Plan sales meetings, contests, displays and exhibitions
  • Explain the sales manager's role, types of salesmen and customer psychology

PTU syllabus topics

  • Sales budget
  • territories
  • quotas
  • control of sales
  • sales meetings and contests
  • organizing displays and exhibitions
  • sales manager qualities and functions
  • types of salesmen
  • customer psychology
ProcessSales control cycle
  1. 1

    Set sales budget and quotas

  2. 2

    Assign territories

  3. 3

    Motivate

    Meetings, contests

  4. 4

    Measure performance

  5. 5

    Analyse variances

  6. 6

    Take corrective action

1

Topic 1

The sales budget

  • Sales budget: a financial plan of expected sales revenue and selling expenses for a period — the starting point of the master budget.
ProcessPreparing a sales budget
  1. 1Sales forecast by product, territory and period
  2. 2Estimate selling expenses

    Salaries, commissions, travel, promotion

  3. 3Review against company objectives
  4. 4Approve and communicate
  5. 5Compare actuals and analyse variances
  • Uses: planning, coordination, control, evaluation of salespeople.
2

Topic 2

Sales territories and quotas

A sales territory is a group of present and potential customers assigned to a salesperson.

ProcessDesigning territories
  1. 1Select a control unit

    District, city, PIN code

  2. 2Estimate market potential
  3. 3Combine units into territories

    Equal potential and workload

  4. 4Assign salespeople
  5. 5Review periodically

A sales quota is a performance target for a salesperson or territory. Types: sales volume, profit, expense and activity quotas (calls, demonstrations). Good quotas are realistic, fair, simple, flexible and accurate.

3

Topic 3

Control of sales

ClassificationSales control tools
Sales control

  • Sales analysis

    By territory, product, customer, salesperson

  • Cost analysis

    Selling expenses and profitability by segment

  • Performance appraisal

    Quantitative (sales vs quota, calls, new accounts) and qualitative (knowledge, attitude)

  • Sales audit

    Systematic review of the sales function

  • Reports and CRM dashboards

    Daily call reports, pipeline tracking

  • Variance analysis: sales price variance and sales volume variance explain deviations from budget.
4

Topic 4

Sales meetings and contests

  • Sales meetings: national, regional or local; purposes — information, training, motivation, recognition, planning; good agenda, participation, follow-up.
  • Sales contests: short-term incentive programmes with specific objectives (new accounts, slow-moving products), fair rules, attractive prizes, clear duration and publicity; risks — gaming, neglect of other tasks.
5

Topic 5

Organising displays and exhibitions

  • Displays: window and in-store displays, point-of-purchase materials, planograms — attract attention and stimulate impulse purchases.
  • Exhibitions and trade fairs: generate leads, launch products, meet distributors, study competitors (India International Trade Fair, Auto Expo).
ProcessPlanning an exhibition
  1. 1

    Set objectives

  2. 2

    Select the event

  3. 3

    Budget

  4. 4

    Design the stall and materials

  5. 5

    Train staff

  6. 6

    Pre-show promotion

  7. 7

    Capture leads

  8. 8

    Follow up and evaluate

6

Topic 6

Qualities and functions of the sales manager

  • Trends: CRM software, sales analytics, social selling (LinkedIn), inside and virtual selling, key account management, team selling, and consultative and solution selling.
  • Roles of a sales manager: planner, leader, trainer, motivator, controller and link between the company and customers.
  • Skills: communication, leadership, analytical, negotiation, people management and technical product knowledge.
7

Topic 7

Types of salesmen

ClassificationTypes of salespeople
Salespeople

  • Order takers

    Inside (counter) and outside (route) order takers

  • Order getters

    Create new demand and customers

  • Missionary salespeople

    Build goodwill and educate — medical representatives

  • Technical salespeople

    Sales engineers for complex products

  • Key account managers

    Handle major customers

  • Retail salespeople

    Assist shoppers in stores

  • Inside and digital sales

    Telephone, online and virtual selling

8

Topic 8

Customer psychology

  • Buying motives: rational (price, quality, durability) and emotional (pride, fear, prestige); product motives and patronage motives (why a particular seller).
  • Customer types: silent, talkative, impulsive, deliberate, sceptical, bargaining, know-it-all — each needs a different approach.
  • Handling objections: listen, acknowledge, clarify, respond with evidence (yes–but, boomerang, question, compensation methods), confirm.
  • Closing techniques: assumptive, summary, alternative choice, trial close, special-offer close.

Key terms

Sales budget
Plan of expected sales and selling expenses
Sales quota
Performance target for a salesperson or territory
Sales audit
Comprehensive review of the sales function
Missionary salesperson
Salesperson who builds goodwill rather than taking orders
Patronage motive
Reason for buying from a particular seller

Quick revision

  • Sales budget preparation and uses.
  • Territories: design steps; quotas: volume, profit, expense, activity.
  • Sales control: analysis, cost analysis, appraisal, audit, variances.
  • Meetings, contests, displays, exhibitions.
  • Sales manager roles; types of salespeople; customer motives, types, objections, closing.

Important exam questions

Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).

Short-answer questions

  1. Q1.What is a sales budget?
  2. Q2.Name four types of sales quota.
  3. Q3.What is a sales audit?
  4. Q4.State two objectives of sales contests.
  5. Q5.What is a missionary salesperson?
  6. Q6.Name three methods of handling objections.

Long-answer questions

  1. Q1.Explain the preparation of a sales budget and the design of sales territories.
  2. Q2.Discuss methods of controlling sales performance.
  3. Q3.Explain the organisation of sales meetings, contests, displays and exhibitions.
  4. Q4.Explain the qualities and functions of a sales manager and the types of salespeople.

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