The need for Sales Management competence - PLOC

Sales as a Financial Item. Company profitability is tied to Sales

Illustration:

Sales – (COGS + Operational Expense)= Gross Income

Sales is the Primary Promotional Function

Drives operational  competitive edge; can easily gain or loss a client.

Personal Selling is the most basic of all forms of Marketing Communication.

All marketing starts with the human person.

Illustration:

In the absence of budget, collaterals and technology, 1 Human Being can sell a product.

Boy Bawang can reach its customers without the need for Advertising.

Avon brands can reach its consumers without the need for supermarkets.

Human Nature’s organic products are creating impact in the Philippine market.

Marlboro is able to sustain its premium segment leadership despite of advertising restrictions.

Sales, as a Unit of an Organization

Unlike other departments housed within the company,

Sales operation is 90% Field/ 10% Office which involves:

1.      A great deal of distance and hence, challenge in communication

2.      A great deal of decision making

3.      A great demand for field management

4.      A great deal of uncertainty/ risk  in field operation

5.      A great need for leadership

6.      Recruitment an d Selection is critical.

Illustration:

How do you manage the entire Philippine archipelago? With 50,000 Stores? 24 Distributors?500 Sales Executives? 10M Daily Sales Transaction?

Risk Involved: A Sales Manager assigned in North Luzon suddenly disappears with 5Million worth of collection during the 80’s. A distributor of Selecta Walls compromises sales operation at Bulacan and hampers distribution discipline creating to OOS. A distributor fails to execute a promotional program which is key to New Product Introduction program.

Sales is the ultimate Performance Indicator  of Marketing

With all programs in marketing measured against its impact on sales.

Illustration:

Sales, Market Share and Profitability are indicators which Advertising, Sales Promotion, Direct Marketing, and Sales Operations are measured against.

Sales volume at Central Luzon is at a downtrend versus last year. Immediately, the RSM identifies the affected area, customers and responsible sales executive. Root Cause analysis points at the deteriorating performance of sales exec due to personal problems. Further investigation/ trade audit results to customers not visited for 4 weeks and unremitted collection. Sales, an a performance indicator, can immediately tell management something is wrong.

Sales is a day to day Discipline where Opportunity Loss or Gain can have strategic and tactical effect on the company – short term and long term.

1.      A sales opportunity loss is computed by multiples. Lost sale, brand shift, brand perception.

2.      You can easily loss a client in a day as easy as you will gain them.

3.      You will loss preferred supplier status.  Losing priority over Purchase Budget.

4.      You can easily loss that Display privilege where a Display Gondola affords you strategic location over impulse buying and customer traffic visibility and availability.

Illustration:

A sales manager earning the ire or displeasure or simply violating the cultural sensibilities of Clients can be disastrous for some companies. Brands have been banned by some Supermarkets for failing to manage their clients.

Why can’t Lion Tiger katol brand sustain its availability at Gaisano Supermarket?

Why is it so hard for Pepsi to penetrate General Trade?

Why cant Nestle get inside Julies Bakeshop? A strategic channel of Ice Cream retail.

RDL cannot compete head on with Splash and Silka.

After a year in the Market, Pinakurat is faced with flanker brands from Datu Puti and other companies.

Why can Pastel dominate CDO while other local promising pasalubong products cannot execute good distribution discipline? Cheese sticks

Why can suysing negotiate high rates of TOT from multinational companies?

Why can splash compete head on with Unilever and Procter?

How does Avon compete with Cosmetic Market Leaders Unilever and Procter?

What forced Coca Cola to buy out Pop Cola from RFM?

What caused the failure of PM- Sterling to penetrate FTC market?

How did Oishi Pillows railroad a market dominated by Marketing Giants Jack and Jill and Rebisco?

Rene Bitara, Prometheus Consultants