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Part I

THE BIG PICTURE


Chapter 1:

Introduction to Selling and Sales Management

If you sincerely believe that the customer is king, the second most important person in this kingdom must be the one who has a direct interaction on a daily basis with the king.

MICHAEL BON CHAIRMAN & CEO, FRANCE TELECOM

Sales Management
I dont care how many degrees you have on the wall, if you dont know how to sell, youre probably going to starve (have nothing to eat) .

Heavyweight boxer George Formans advice to his children


L.A. Times, pg. C2, Tuesday, March 25, 1997

SALES MANAGEMENT

The planning, organizing, leading and controlling of personal contact programs designed to achieve the sales and profit objectives of the firm

SALES MGT PROCESS


. The sequence of activities that guides managers in the creation and administration of sales programs for a firm
1. Focusing on the big picture 2. Roles of sales force 3. Structuring the sales force

4. Building sales competencies

5. Leading the sales force

PERSONAL SELLING
According to the U.S. Department of Labors, people working in sales number close to 12 million, or about 10 percent of the total workforce in the United States.

Marketing Management
Marketing Management (Kotler):
is the analysis, planning, implementation, and control of marketing programs designed to create, build, and maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organizational objectives.

Marketing and Selling Concepts Contrasted


Starting Point
Factory

Focus
Products

Means
Selling and Promoting

Example Ends
e.g., Profits through Volume

(a) The Selling Concept

Market

Customer Needs

Integrated Marketing

e.g., Profits through Satisfaction

(b) The Marketing Concept

Marketing and Selling Concepts Contrasted


What is the difference between marketing and selling? The difference between marketing and selling is more than semantic. Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is preoccupied with the sellers need to convert the product into cash; marketing with the idea of satisfying the need of the customer .

Positions of Personal Selling and Sales Management in the Marketing Mix


Marketing mix Products Prices Public relations Promotion Personal selling Distribution Sales promotion

Advertising

Internet

Sales management

Planning Budgeting Recruiting and selecting Training

Motivating Compensating Designing territories Evaluating performance

What Creates Satisfied Customers?


21% A Total 37%
Competence of the Salesperson Customer Solution

25% Quality
of Product or Service

17%
Competitive Price

Characteristics of Modern Selling


Customer retention and deletion Database and knowledge management Customer Relationship Management

Adding value/satisfying needs

Problem Solving and system Selling

Customer

Marketing the Product

Responsibility of Sales Manager


Organizing Sales Effort
Inside ensure effective communication within and other departments Outside- key contact with customers, and other external Public Maintaining effective distribution network.

Participation in Key Marketing Decisions


Budgeting, Products, Marketing Channel, Advertising and other marketing programmes

Handling Distribution Problems

Objective of Sales Management


Sales Volume Contribution to Profit Continuing Growth Supports to Marketing decisions Charting the course of future operations.

Nature and Importance of Sales Department


Integration with Marketing Management
Promotion of the product Marketing research Marketing Logistics Customer Service Co-Ordination

Relationship selling Varying Sales responsibilities

Role and Functions of Sales Manager/Executive


Organization and Coordination Planning and Coordination Coordination with other elements in the marketing programme Coordination with the distributive Network
Gaining Product distribution Obtaining Dealer identification Reconciling business goals Sharing promotional risks

Coordination and implementation of overall marketing strategy

Sales Department Relations


Coordination of Personal Selling with Other Marketing Activities Sales and Advertising Sales and Marketing Information Sales and Services Sales and Physical Distribution Coordination's of personal selling with other departments Sales and Production Sales and Research and Development Sales and Personnel Sales and Finance Sales and Accounting Sales and Purchasing Sales and Public Relations Sales and Legal Sales department external relations Final Buyer Relations Industry Relations

Government Relations
Educational Relations Press Relations

Sales Vs Marketing
# 1 Selling Emphasis on Product Marketing Emphasis on consumer needs and wants Company first determines customers needs and wants and then decides on how to deliver a product to satisfy these wants. Management is profit & customer relationship oriented Planning is long-term oriented, in terms of new products tomorrow's markets and future growth Stresses need and wants of buyers

Company manufactures the product first and then decides to sell it


Management is sales-volume oriented Planning is short-term in terms of today's product and markets Stress need of a seller

Sales Vs Marketing
#
6

Selling
Views business as goods producing process

Marketing
Views business as consumer satisfying process

Emphasis on innovation in every Emphasis on staying with existing sphere, on providing better value technology to the customers by adopting a superior technology Different department work as highly separate unassailable compartments All departments of a business operate in an integrated manner, the sole purpose being generation of consumer satisfaction

Selling view customers as the last Marketing view the customers as link in business the very beginning of a business

Personal selling
involves two-way communication with prospects and customers that allows the salesperson to address the special needs of the customer. Perhaps the most important advantage of personal selling is that it is considerably more effective than advertising, public relations, and sales promotion in identifying opportunities to create value for the customer and gaining customer commitment.

Sales management
Sales management can thus be defined as: The planning, organizing, leading, and controlling of personal contact programs designed to achieve the sales and profit objectives of the firm.

all managers have two types of responsibilities Achieving or exceeding the goals established for performance in the current period Developing the people reporting to them

Types of Selling
Selling Function Order Takers

Order Creators

Order Getters

Inside Order takers Delivery Salespeople

Missionary Salespeople

Front Line salespeople

Sales Support Salespeople Technical Support

New Business Salespeople

Outside Order Taker

Organizational Salespeople

Merchandisers

Consumer Salespeople

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

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