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What is Sales Management

What is Sales Management

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sales managment
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Published by: Professor Sameer Kulkarni on Dec 17, 2007
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08/16/2013

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What is Sales Management?

Introduction to Personal Selling
Prepared by: Prof Sameer Kulkarni.

Objectives

Provide an introduction to sales management Who does a sales manager manage? Where does sales management fit into the integrated marketing communication process

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 (Futrell1998) 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.

Sales Management

Firm

Sales Managers

Personal Sales Representatives

Customer

Value

Sales Management
Firm Sales Managers Personal Sales Representatives Customer

Value

Sales Management
Sales Managers Personal Sales Representatives

What are the sales managers goals?
    

Sales Revenues Profits Market Share Controlling internal costs

Sales Management
Sales Managers

Personal Sales Representatives

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

Sales Management
Overview Sales Environment

Supervising

Planning

Sales Managers
Motivating Recruiting

Personal Sales Reps

Training

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.

Sales Management
Overview Sales Environment Supervising

1) 2) 3) 4) 5)
Planning

Past Present Sales Environment International Organizing Future Personal Sales Reps

Sales Managers
Motivating Recruiting

Training

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.

Sales Environment

Past

Industrial Revolution After WWI the need for mass distribution became evident 1950s and the marketing concept

Sales Environment

Present

Relational Approach Current Jobs in Sales Opportunities in Sales Management

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)

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)

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)

Sales Environment

Future
What does the sales organization of the future look like?

Sales Management
Overview Sales Environment

1) 2) 3) 4) 5)
Planning

Automation Forecasting Financial Planning Quotas Time and Territory Personal Sales Reps

Supervising

Sales Managers
Motivating Recruiting

Training

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.

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

(Source: Futrell)

Planning

Automating the Sales Force
Hardware

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

Software

What type software does the sales force need?

Planning

Sales Forecasting
How do we forecast sales?
       

Sales force composite Jury of executive opinion Survey of buyer intentions Trend projections Moving averages Exponential smoothing Regression Econometric models

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)

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)

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 salespeople’s work loads How many salespeople will the territory support Territory’s boundaries Optimum way to travel from one prospect to the next
(Source: Hite and Johnston)

Sales Management
Overview Sales Environment

1) Recruiting 2) Selecting
Planning

Supervising

Sales Managers
Motivating Recruiting

Personal Sales Reps

Training

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.

Recruiting

Recruitment- set of activities and processes used to legally obtain a sufficient number of individuals that takes the people’s and the sales force’s best interests into consideration

(Source: Futrell)

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 Professional associations Employment agencies

Recommendations Armed Forces Unsolicited applicants

Institutions Classifieds

(Source: Hite and Johnston)

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)

Sales Management
Overview Sales Environment

Supervising

Planning

Sales Managers
Motivating Recruiting

Personal Sales Reps

2) Developing current sales force
Managing

Training

1) New sales force training

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.

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)

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)

Training

Developing

Everything changes over time so constant training is needed When can advanced training techniques be used?

Sales Management
Overview Sales Environment

Supervising

Planning

Sales Managers
Motivating Recruiting

Personal Sales Reps

1) Motivating 2) Compensating 3) Indirect Incentives
Managing

Training

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.

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 salesperson’s 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)

Motivating

Motivating

Recognition Awards Special communications

(Source: Hite and Johnston)

Motivating

Compensating (L23)

Salary Commission Bonus Combinations

(Source: Hite and Johnston)

Motivating

Indirect Incentives
 

Expenses allowances Sales contests
   

Themes Prizes Advantages Disadvantages

Johnston)

(Source: Hite and

Sales Management
1) Leadership 2) Supervision 3) Evaluating
Supervising Overview Sales Environment

Planning

Sales Managers
Motivating Recruiting

Personal Sales Reps

Training

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.

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)

Supervising

Evaluating (L26)
 

Analysis of sales volume Marketing cost analysis

Sales Management
Overview Sales Environment

1)Types of Sales People 2) Selling Environments

Sales Managers

Supervising

Planning

Personal Sales Reps

Motivating

Recruiting

Training

3) Prospecting 4) Preapproach 5) Approach 6) Presentation 7) Objections 8) Closing 9) Follow up

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.

Definition

Personal Selling (L4)
Personal Selling- is direct oral communication designed to explain how an individual’s or firm’s goods, services, or ideas fit the needs of one or more prospective customers

(Source: Hoffman et al)

The Sales Process
Prospecting/ Qualifying (L5) Preapproach/ Planning (L6)

Identifying Needs

Identifying Needs

Approach (L7)

Presentation (L7) Handling Objections (L8)

Closing the Sale (L8)

Follow up

Types of Communication
Marketing

Product

Promotion

Place

Price

Personal Selling

Public Relations Advertising

Sales Promotion

Direct Marketing

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

(Source: Hoffman et al)

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