S13: SALES MANAGEMENT -1

Term 4 (2022-23 )
Sales and Distribution Management

Prof. Avinash Mulky

 The Selling World

COMPANY
EXTERNAL
FORCES SALES SYSTEM
Company Marketing Sales Force Results
 Customer
Strategy Strategy
Company

Partner Sales
Force
 The Selling World

COMPANY
EXTERNAL
FORCES SALES SYSTEM
Company Marketing Sales Force
Strategy Strategy Results
 Customer
Channel Company
Environment Company Market
business segmentation
goals and Value
Effectiveness
objectives proposition
drivers
 Corporate  Sales
Structure
strategy process
Customers and roles
Distribution
People
channel
Activity
strategy

Competition

Accelerating Sales Performance

How do we know that we have a successful sales
organization?
• Company results
– Sales, market share, profitability, growth, cost of sales under control
• Customer Value
– Buying experience, functionality, total cost of ownership
• Activities in sales
– Strategic products get attention, salesforce spends quality time with
channel & customers, adequate focus on new customer acquisition
• Salespeople Management
– Right people, Product and domain knowledge, right attitudes & skills
• Sales effectiveness drivers
– Size, Structure, Territory design, Recruitment, Training, Culture,
Compensation, Performance management
Relationships

Sales Size, structure, roles

effectiveness Salespeople Company
Customer
drivers results results

Activities
 Analysis: Issues that are faced at the company level

Sales Force /
Results
EXTERNAL Company Marketing Partner Sales
 Customer
FORCES Strategy Strategy force
Company

 Buyer  We are  We are  Salespeople  Sales

power is launching a focusing on morale is low targets are
increasing new new  We don’t not being met
Customers technology segments spend enough  We need to
are  Our product  We have time build
postponing range is implemented generating customer
purchase shifting a new selling new business loyalty
 New  We just process  Salespeople  We are
competitors went through  We are lack skills to forced to give
are in the a downsizing implementing close orders huge
market  We are a new  We have discounts
Competitors reorganizing distribution high attrition
are lowering the company system in salesforce
prices
Analysis: Issues that are faced by sales managers

Company
Customer
Salesforce size, Salespeople Activities Results
structure and roles Results

 Not enough  Salesforce does  Calls per day are  Customer  Market share
salespeople not have required too low satisfaction is is down
 Sales skills  Too much time low  Sales are
organization  Turnover is too on  Customers down
structure is high administration themselves Margins are
complex  Salespeople don’t  Need to spend are under down
 Sales roles, take ownership more time with pressure on Cost of sales is
responsibilities  Salespeople are high value sales and too high
are unclear averse to learning customers profits
new things  Not enough time
with key decision
makers
Key issues faced by sales managers
Sales Force size, Isthe sales force sized correctly?
structure, roles  Are our selling costs too high?

Salespeople  How good are our salespeople?

 Is the attrition rate too high?

 Does the company have a “ Success” Culture?

Sales Force Activities  Is the customer coverage adequate?

 Does the sales force call on the right people?

 Does the sales force use the right Sales process and
methodology?
Customer  Does the sales force meet customer needs?
 Does the sales force develop close relationships with
customers?
 Is the company’s reputation being enhanced?

Company results  How much scope is there for increasing sales from present
customers?
 Is there sufficient inflow of new customers?
Performance management

PERFORMANCE MANAGEMENT

Salespeople Activities
Performance management cycle

Goals and
expectations

Plans Evaluation Consequences

Actions Measurement
How to analyze performance

• Compare with budget for territory

• Compare with previous years sales growth in the territory

• Compare with other territories/region/zone/country

• Use market share for comparison

• Compare with potential in the territory

 What do sales managers do?

Planning 1
Building a profitable
and customer-oriented
5 sales team 2 Performance
Resources •Sales & Profits
Controlling Staffing
Human •Customer
Analysis & Hiring the right
people
satisfaction
Financial Evaluation
•Efficiency
Information
4 3 •Effectiveness
Technology
Leading Training
Obtaining above Educating sales
average people
performance

Source: Futrell, Sales Management, 6th Edition

Planning

• Sales organization structure

– Session 14: Meridian Systems case
• Salesforce size
– Session 15: Nutricia Middle East case
• Sales territory design
• Allocation decisions
– Allocate salespeople to territories, customers, segments, products
• Sales forecasting
• Sales Budgets and Targets
Staffing

• Recruitment objectives
• Justification for recruitment
• Screening candidates
• Selection
• Placement in a territory
• Socialization
• Retention and growth
• Transfers, reassignment
• Termination where required
Training and competency development

• Accompanying salespeople on sales visits

• Training needs assessment

• On the job training & mentoring

• Recommending formal training

• Post training assessments

Leading the sales team

• Leadership behaviour

• Supervision

• Coaching

• Motivating

• Designing and implementing compensation plans

Controlling the sales effort

• Analyzing performance

• Diagnosing variance

• Actions to achieve targeted performance

• Implementing sales process and discipline

• Handling crises
Performance measures

• Input (effort) • Results adjusted for

– No. of calls expenses
– No.of calls/client – Sales-expenses
• Output – Sales $ per call
– Sales revenue
– Gross margin, • Results adjusted for
– No. of clients territory
– % of BPI target sales achieved
– Sales $ per total number of
targeted clients
Stepsmart Fitness case