Department of Business Management-KIU,

NAs-Gilgit
What is Sales Management?
By Irfan Ali


Department of Business Management-KIU,
NAs-Gilgit
Objectives
Provide an introduction to Sales Management

Who does a Sales Manager Manage?

Where does Sales Management fit into the Integrated Marketing
Communication process
Department of Business Management-KIU,
NAs-Gilgit
The Sales Force

Sales Management- is the attainment of sales force goals in an
effective and efficient manner through planning, staffing, training,
leading, and controlling organizational resources (Futrell-1998)

Managing a sales force involves recruiting, hiring, training,
supervising, compensating salespeople, motivating them to become
problem solvers, and providing the proper planning and backup
support so they can perform their jobs properly.
Department of Business Management-KIU,
NAs-Gilgit
Sales Management
Personal
Sales
Representatives
Sales
Managers
Customer
Firm
Value
Department of Business Management-KIU,
NAs-Gilgit
Sales Management
Customer
Personal
Sales
Representatives
Sales
Managers
Firm
Value
Department of Business Management-KIU,
NAs-Gilgit
Sales Management
What are the sales managers goals?

Sales
Revenues
Profits
Market Share
Controlling internal costs
Personal
Sales
Representatives
Sales
Managers
Department of Business Management-KIU,
NAs-Gilgit
Sales Management
How do they obtain their goals?

Knowledge of the sales environment
Planning for sales
Recruiting the sales force
Training the sales force
Motivating the sales force
Supervising the sales force

Personal
Sales
Representatives
Sales
Managers
Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising, compensating
salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.

Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising, compensating
salespeople, motivating them to become problem solvers, and providing the proper
planning and backup support so they can perform their jobs properly.

1) Past Present
2) Sales Environment
3) International
4) Organizing
5) Future
Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Sales Environment
Past
Industrial Revolution

After WWI the need for mass distribution became evident

1950s and the marketing concept

Department of Business Management-KIU,
NAs-Gilgit
Sales Environment
Present

Relational Approach

Current Jobs in Sales

Opportunities in Sales Management


Department of Business Management-KIU,
NAs-Gilgit
Sales Environment
Organizing the Sales Force

Organizing- the assignment of tasks, the grouping of task into
departments, and the allocation of resources to departments
(Source: Futrell)
Structure of the sales managers job

Chain of command




(Source: Hite and Johnston)
Department of Business Management-KIU,
NAs-Gilgit
Sales Environment
The Sales Environment

Legal Issues
Consumer protection laws
Antitrust laws
Unfair trade practices
Fraud and misrepresentation
Uniform Commercial Code
Direct-to-consumer sales
Antidiscrimination laws

Ethical Issues
Creating ethical corporate structures
Relationships with customers
Relationships with competitors
Relationships with the firm
Relationships with society

(Source: Hite and Johnston)
Department of Business Management-KIU,
NAs-Gilgit
Sales Environment
International

Ethnic composition
Religious orientation
Social class environment
Education
Gender bias
Differences in negotiating styles
Differences in decision making
Job status and company protocol
Social aspects
Perceptions of time
Personal relationships
(Source: Hite and Johnston)


Department of Business Management-KIU,
NAs-Gilgit
Sales Environment
Future

What does the sales organization of the future look like?
Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their
jobs properly.

1) Automation
2) Forecasting
3) Financial Planning
4) Quotas
5) Time and Territory

Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Planning
Planning-is the conscious, systemic process of making decisions
about goals and activities that an individual, group, work unit, or
organization will pursue in the future and the use of resources
needed to attain them




Department of Business Management-KIU,
NAs-Gilgit
Planning
Automating the Sales Force

Hardware
Type of computers, printers, copiers, phones, etc.


Software
What type software does the sales force need?
Department of Business Management-KIU,
NAs-Gilgit
Planning
Sales Forecasting

How do we forecast sales?
Sales force composite
Jury of executive opinion
Survey of buyer intentions
Trend projections
Moving averages
Department of Business Management-KIU,
NAs-Gilgit
Planning
Financial Planning for Sales

Budgeting
Salespeople expenses
Administrative expenses
Other selling payroll
Other selling expenses
Communication expenses

Profit objectives
Break-even analysis
Controlling the budget
Selling the budget to top management
(Source: Hite and Johnston)

Department of Business Management-KIU,
NAs-Gilgit
Planning
Quotas

Sales quota- the specific sales or profit objective a salesperson is expected to
achieve
(Source: Perreault and McCarthy)
Dollar sales
Unit volume
Margin
Selling effort
Product type
(Source: Kotler)
Other types of quotas
Expense quotas
Profit quotas
Activity quotas
(Source: Hite and Johnston)
Department of Business Management-KIU,
NAs-Gilgit
Planning
Time and Territory Management

Optimum time must be spent with those prospects with the greatest
potential

Territory management involves:
Identification and classification of prospects
Analysis and development of the salespeoples work loads
How many salespeople will the territory support
Territorys boundaries
Optimum way to travel from one prospect to the next
(Source: Hite and Johnston)

Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.

1) Recruiting
2) Selecting
Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Recruiting
Recruitment- set of activities and processes used to legally obtain a
sufficient number of individuals that takes the peoples and the sales
forces best interests into consideration









(Source: Futrell)


Department of Business Management-KIU,
NAs-Gilgit
Recruiting
Recruiting

The sales manager should recruit individuals whose values and
goals match those of the firm
(Source: Hoffman et al)
Where do you find sales recruits
Other departments Recommendations Institutions
Professional associations Armed Forces Classifieds
Employment agencies Unsolicited applicants



(Source: Hite and Johnston)

Department of Business Management-KIU,
NAs-Gilgit
Recruiting
Selecting

What is the firm looking for?
People that can sell successfully
Remain with the company over a long period of time

Problems
Legal and ethical restrictions
Firm must maintain a good image
Must have a valid job description


(Source: Hite and Johnston)
Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.

1) New sales force
training
2) Developing
current sales
force
Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Training
Sales Training- effort put forth by an employer to provide the
salesperson job related culture, skill, knowledge, and attitudes that
result in improved performance in the selling environment









(Source: Futrell)
Department of Business Management-KIU,
NAs-Gilgit
Training
Training

What is needed for a training program to work?
Provide a job description
Provide product knowledge
Provide company knowledge
Provide market knowledge
Selling techniques

Why train
Decreased turnover
Increased sales
Enhanced customer relationships
Decreased costs
(Source: Hite and Johnston)
Department of Business Management-KIU,
NAs-Gilgit
Training
Developing

Everything changes over time so constant training is needed

When can advanced training techniques be used?


Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers,
and providing the proper planning and backup support so they can perform their
jobs properly.

1) Motivating
2) Compensating
3) Indirect Incentives
Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Motivating
The most commonly used definitions of salesperson motivation include
three dimensions: (1) intensity, referring to the amount of mental
and physical effort put forth by salespeople, (2) persistence,
describing the salespersons choice to expend effort over a period of
time, and (3) direction, implying that salespeople choose where
their efforts will be spent among various activities.

(Source: Ford, Walker, and Churchill)




Department of Business Management-KIU,
NAs-Gilgit
Motivating
Motivating

Recognition

Awards

Special communications





(Source: Hite and Johnston)


Department of Business Management-KIU,
NAs-Gilgit
Motivating
Compensating

Salary

Commission

Bonus

Combinations




(Source: Hite and Johnston)


Department of Business Management-KIU,
NAs-Gilgit
Motivating
Indirect Incentives

Expenses allowances

Sales contests
Themes
Prizes
Advantages
Disadvantages




(Source: Hite and Johnston)

Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.

1) Leadership
2) Supervision
3) Evaluating
Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Supervising
Leadership
Leadership- the process of getting things done through others
Leadership Styles
Types of leadership
(Source: Hite and Johnston)

Supervision
Supervision- the actual oversee and directing of the day-to-day
activities of salespeople
(Source: Futrell)


Department of Business Management-KIU,
NAs-Gilgit
Supervising
Evaluating

Analysis of sales volume
Marketing cost analysis

Department of Business Management-KIU,
NAs-Gilgit
Sales Management

Planning
Personal
Sales Reps
Sales
Managers
Recruiting
Training
Motivating
Supervising
Managing a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their
jobs properly.

1)Types of Sales People
2) Selling Environments
3) Prospecting
4) Preapproach
5) Approach
6) Presentation
7) Objections
8) Closing
9) Follow up
Overview
Sales
Environment
Department of Business Management-KIU,
NAs-Gilgit
Definition
Personal Selling

Personal Selling- is direct oral communication designed to explain
how an individuals or firms goods, services, or ideas fit the needs of
one or more prospective customers






(Source: Hoffman et al)
Department of Business Management-KIU,
NAs-Gilgit
The Sales Process
Prospecting/ Qualifying
Preapproach/ Planning
Presentation
Handling Objections
Closing the Sale
Approach
Follow up
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Department of Business Management-KIU,
NAs-Gilgit
Types of Communication
Promotion
Personal Selling Advertising Public Relations
Marketing
Product Place Price
Sales Promotion Direct Marketing
Department of Business Management-KIU,
NAs-Gilgit
Managing the Marketing Communication Process
Integrated marketing communications

Integrated marketing communications- the intentional coordination
of every communication from a firm to a target customer to convey a
consistent and complete message









Department of Business Management-KIU,
NAs-Gilgit