Part I

Chapter 1:

THE BIG PICTURE

Introduction to Selling and Sales Management

Sale s Management
“I don’t care how many degrees you have on the wall, if you don’t know how to sell, you’re probably going to starve.”

Heavyweight boxer George Forman’s advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997

What Creates Satisfied Customers?
21% A Total 37%
Customer Solution

Competence of the Salesperson
25% Quality 17%
Competitive Price of Product or Service

Figure 1-1:

Positions of Personal Selling and Sales Management in the Marketing Mix
Marketing mix Products Advertising Prices Promotion Public relations Distribution Sales promotion

Personal selling

Sales management Planning Budgeting Recruiting and selecting Training Motivating Compensating Designing territories Evaluating performance

W ha t’ s New ?

Figure 1-2:

Marketplace Changes and Selling Consequences
Competition Global Competition Shorter Production Cycles Blurred Boundaries Customers Fewer Suppliers Rising Expectations Increasing Power

Selling Process Relationship Selling Customer Relationship Management Sales Teams Global Account Management Inside Selling

Figure 1-3:

Contrasting Transactional and Relationship Selling Models
TRANSACTIONAL
Emphasis on Sales skills Respond to Customer needs Provide good products, Price, and services Narrow the customer focus Differentiate through Products Sales/revenue Focus Traditional customer relationships

RELATIONSHIP
Emphasis on general Management skills Proactive innovation/opportunity Identification and offers Value-based offers/ Organizational enablers Broaden to Customers’ customer Differentiate through People Profit management focus/ Share of customer Trusted business advisor and partner

Figure 1-4:

Traditional Buyer-Seller Interface versus A Team Interface
TRADITIONAL BUYER-SELLER INTERFACE BUYER-SELLER INTERFACE TEAM

Sales

Purchasing

Sales Team

Customer Team

Supplier

Customer

Supplier

Customer

Improvi ng Your Cha nce s of Suc ces s
1. Build awareness 2. Get on the short list 3. Demonstrate how your proposal meets company needs 4. Directly address decision maker’s personal needs 5. Be prepared for “buyer remorse”

A Sal es Quota Manager: Job Focus
 Maintain direct responsibility for sales results for specific customers.  Manages one or a few larger, long-term or strategic accounts  May have a staff of one or more subordinate sales or support people, but focus on managing the sales team for the sake of achieving customer results

A Sal es Force Manager: Job Focus
 Spend little or no time directly managing customer accounts.  Focuses on building, refining, and staffing a selling team.  Contact with customers is largely nonselling, but service and salesperson development in purpose.

A Sal es Quota Ma na ger ’s Skil l Set

 Willingness to Train/Coach  Willingness to Make Joint Sales Calls  Problem-Solving  Making Presentations  Answering Objections

A Sal es Force Ma na ger ’s Skil l Set

 Willingness to Train/Coach  Willingness to Make Joint Sales Calls  Ability to Direct and Control Others  Profit Mentality  Initiative

T he Sal es Mana gement Acti vi ti es

Table 1-1:

Sales Manager’s Time Allocations
JOB RESPONSIBILITY MANAGER’S TIME ALLOCATION

Selling Face-to-face Telephone selling Administration Account service/coordination Travel/waiting Internal meeting

29% (17) (12) 25 17 15 14

T he Sal es Mana gement Compete nc ies
What it takes to be a good Sales Manager

Figure 1-5:

A Model of Sales Management Competencies
Strategic Action Competency Sales Management Effectiveness SelfManagement Competency

Technology Competency Global Perspective Competency

Coaching Competency Team Building Competency

St rate gic Ac tion Co mp etenc y Dime nsi ons
Understanding the Industry:
 Understands the history and general trends in the industry and their implications for the future  Stays informed of and anticipates the actions of competitors and strategic partners  Identifies attractive market segments and their buying needs

St rate gic Ac tion Co mp etenc y Dime nsi ons
Understanding the Organization:
 Understands the vision, overall strategy, and goals of the organization  Appreciates the distinctive competencies of the organization with respect to market opportunities and limitations  Understands how to marshal organizational resources to meet the needs of the customers

St rate gic Ac tion Co mp etenc y Dime nsi ons
Taking Strategic Actions:
 Assigns priorities and making decisions that are consistent with the firm’s mission and strategic goals  Implements specific account selection, retention, and dominance strategies  Develops an appropriate portfolio of account relationships  Considers the long-term implications of actions in order to sustain and further develop the organization  Establishes tactical and operational goals that facilitate the firm’s strategy implementation

Coac hi ng Com pet en cy Di mensi ons
Providing Verbal Feedback:
 Provides specific and continuous performance and selling skills feedback  Builds a feeling of appreciation and recognition by taking the time to acknowledge a job sell done, and effort beyond the call of duty or an important victory  Reinforces successes and nice-tries to support desirable behaviors

Coac hi ng Com pet en cy Di mensi ons
Role Modeling:
 Leads by example, rather than decree  Provides role models, either themselves or others, and sharing best practices  Models professional attitudes and behaviors

Coac hi ng Com pet en cy Di mensi ons
Trust Building:
 Maintains good rapport with the sales team and fosters open communications, collaboration, creativity, initiative, and appropriate risk taking  Adds value through communicating relevant selling experiences  Helps salespeople to “look good” through twoway communications

Team bui ldi ng Com pet enc y Di mensi ons
Designing Teams:
 Implements an organizational architecture that will support teams  Creates a reward system that is fair within the context of a team effort  Coordinates team goals with the overall goals of the organization  Coordinates team activities with the requirements of functional areas within the organization

Team bui ldi ng Com pet enc y Di mensi ons

Creating a Supportive Environment:
 Hires people that will be successful in a team environment  Trains programs that encourage teamwork  Integrates the individual members of the sales team together to form a functioning supportive team

Team bui ldi ng Com pet enc y Di mensi ons

Managing Team Dynamics:
 Understands the strengths and weakness of team members and using their strengths to accomplish tasks as a team  Facilitates cooperative behavior and keeps the team moving towards its goals

Se lf-Manag eme nt Co mp etenc y Dime nsi ons
Fostering Integrity and Ethical Conduct:
 Has clear personal standards that serve as a foundation for a sense of integrity and ethical conduct by the sales team  Projects self-assurance and does not just tell people what they want to hear  Willing to admit mistakes and accepts responsibility for own actions

Se lf-Manag eme nt Co mp etenc y Dime nsi ons
Managing and Balancing Personal Drive:
 Seeks responsibility, works hard and is willing to take risks  Shows perseverance in the face of obstacles and bounces back from failure  Ambitious and motivated to achieve objectives, but does not put personal ambition ahead of the organization’s goals  Understands that goals are achieved through the success and development of the salespeople

Se lf-Manag eme nt Co mp etenc y Dime nsi ons
Developing Self-Awareness and Management Skills:
 Has clear personal and career goals and knows own values, feelings and areas of strengths and weaknesses  Analyzes and learns from work and life experiences  Willing to continually unlearn and relearn as changing situations call for new skills and perspectives

Glob al Pe rspective Co mp eten cy Di men si on s
Cultural Knowledge and Sensitivity:
 Stays informed of political, social, and economic trends and events around the world  Recognizes the impact of global events on the market and the organization  Sensitivity to cultural cues and ability to adapt quickly in novel situations  Travels regularly and has a basic business vocabulary in languages relevant to the position

Glob al Pe rspective Co mp eten cy Di men si on s
Adapting Global Selling Program:
 Adopts an appropriate sales force architecture for global accounts  Appropriately adjusts sales force measurement, competency creation and motivation systems to the local culture  Appropriately adjusts own behavior when interacting and managing people from various national, ethnic and cultural backgrounds

Technol ogy Comp et ency Di mensi ons
Understanding of New Technology:
 Awareness of the potential for technology to increase sales force efficiency and effectiveness  Experience in using new technology  Attitude toward adopting new technology

Technol ogy Comp et ency Di mensi ons
Implementing Sales Force Automation:
 Knows what is to be accomplished and the benefits that are possible  Adapts personal management style and procedures  Fosters sales force acceptance and use of selling technology

Know you r e- Busi ness Termi nol ogy
1. EDI 2. ERP 3. CRM 4. Groupware 1. Intranet 2. Extranet 3. E-Commerce

Ho w do y ou get to the top?

Figure 1-6:

Career Paths at Procter and Gamble
EXECUTIVE MANAGEMENT FUNCTION MANAGEMENT – GENERAL MANAGEMENT
WORLDWIDE ASSIGNMENTS

DIRECTOR
Customer Business Development Sector/ Multi-Sector Sales Human Resources

OTHER FUNCTIONS

• Canada • Latin America • Asia/Pacific • Europe • Middle East & Africa • U.S.

• Advertising • Product Supply

ASSOCIATE DIRECTOR
Customer Business Development Sector/ Multi-Sector Bus. Devel Sector Sales Merchandising Human Resources

• Management System • Human Resources

MANAGER
Operations Manager Geographic or Team Account Exec Other Field or General Office Roles

• Finance • Other

ACCOUNT MANAGER
Operations Manager Geographic or Team Account Exec Other Field or General Office Roles

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