Mark W. Johnston | Greg W.

Marshall

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
1 Introduction to Sales
Management in the Twenty-
First Century
 Change Central to Sales
Management Today
 Changing customer needs
drive changes in salespeople
 Changing sales management
agendas
 Change creates opportunities

Source: HR Chally Group (2007) The Chally World Class Excellence Research Report: 1-3
The Route to the Summit. Dayton, OH: HR Chally Group.
 Identify/discuss key trends
affecting sales organizations
managers today
 Present a general overview of
the sales management process
 Identify/illustrate key external
and internal environmental
factors influencing the
development of marketing
strategies and sales programs

1-4
 Sales Management in the 21st
Century
 Long-term relationships with
customers

Nimble and adaptable sales
organizational structures

Fewer functional barriers within the
organization

Coaching sales management style
 Leverage technology

Incorporate all activities and
outcomes in performance
evaluations
1-5
 Key Themes

 Innovation – thinking outside the box

 Technology – broad spectrum of tools
available to salespersons
 Leadership – capability to make things
happen
 Globalization
 Ethics

1-6
 Innovation in Sales

Transactional Selling –
transactions involving separate
organizations, each entering into
trend an independent transaction.
 Relationship Selling – narrows
the vendor pool, improves
efficiencies, works directly with
customers to solve problems.

1-7
 1.1 What Smaller Prospects Want

 Opportunity to buy online

 Partners, not entertainers
 Simplicity
 Single point of contact
 Improved segmentation
analysis

Sources: Jennifer Gilbert, “Small but Mighty,” Sales & Marketing Management, January 2004, pp. 30-35; "Moving
Beyond Small, Medium, and Large", Selling Power Sales Management Newsletter, February 2007. 1-8
 Technology

 Accessibility via computers and mobile

phones
 Interactive web presences
 Just-in-Time (JIT) delivery
 Electronic Data Interchange (EDI)
 Efficient Customer Response (ECR)
 Customer Relationship Management
Software (CRM)
 Intranets

1-9
 Leading vs. Managing

Managing
Control

Supervisor/boss

Direct

Leading (Mentoring)
Communicate

Cheerleader/coach

Empower to make decisions

1-10
 1.2 Evolution of CRM

 CRM recognized as adding

value
 Profits of vendors continue to
increase as CRM evolves
 Better results, increased
investment
 Mobility via smart phones
Sources: "How to Make Sales Professionals More Mobile", Selling Power CRM Newsletter, March 2009; "Why CRM is
the Right Investment in a Bad Economy", Selling Power Newsletter, March 2009. 1-11
 A Global Endeavor

 Drivers
 Customers can easily
communicate world-wide
 Significant growth opportunities
lie outside domestic markets
 Customers are global
 Diversity of sales force creates
challenges
1-12
 1.3 Servant Leadership

 Take subordinates’ work

seriously
 Take lead from subordinates
 Build trust
 Allocate rewards and glory
 View self as steward

Source: Ideas derived from the web site of the Robert K. Greenleaf Center for Servant Leadership, www.greenleaf.org. 1-13
 1.4 Bridging the Culture Gap

 Understand and embrace

ethnic customs
 Adapt selling approaches
 Portray genuine interest in
cultural differences

Sources: Michael Soon Lee, "More Myths About Multicultural Customers", American Salesman, May 2008; "Seven German-American Cross-Cultural Business Differences", Selling Power, 2008

1-14
 Ethics

 Trust is necessary to maintain

customer loyalty
 Long term relationships require
higher ethical standards
 Federal Sentencing Guidelines
designed to punish unethical
firms

1-15
 Sales Management Process

 The formulation of a sales

program
 The implementation of the
sales program
 The evaluation and control of
the sales program

1-16
1.1

1-17
 Environmental Impact

 Environmental forces constrain pursuit of

certain marketing strategies or activities
 Environmental variables determine
ultimate success or failure of marketing
strategies
 Changes in the environment create new
marketing opportunities
 Environmental variables are affected by
marketing activities

1-18
 1.2
Components of
the external
environment

1-19
 Economic Environment

 Buyer-seller interactions take place

within the context of current
economic conditions
 The economy impacts real potential
demand
 Global economic conditions are
important
 Competitive structure affects selling
success

1-20
 Legal-Political Environment

 Increased number of laws

regulate conduct of business
 Three broad categories of
relevant laws:
 Antitrust
 Consumer Protection
 Equal Employment Opportunity

1-21
 Federal Trade Commission Act

Antitrust Reciprocal Dealing Arrangements

Provisions Clayton and Sherman Acts

1.3 Robinson-Patman Act

Antitrust and Consumer
Fair Packaging and Labeling Act
Protection Laws

Consumer Truth-in-Lending Act

Protection Cooling-off Laws
Provisions FTC Requirements
Green River Ordinances
1-22
 Technological Environment

 Changes how salespeople/sales

managers do their jobs

Influences sales strategies

Provides opportunities for product
development
 Transportation, communications,
and data processing technologies
change:

sales territories

sales rep deployment

sales performance evaluation

1-23
 1.5 Enterprise e-mail

 Applied Industrial Technologies

developed enterprise email
system organically
 Responded to salespersons’
requests
 Flexible, effective
 Provides efficient
communication re: each
customer contact
Source: HR Chally Group (2007) The Chally World Class Excellence Research Report: 1-24
The Route to the Summit. Dayton, OH: HR Chally Group.
Social and Cultural Environment

 Ethics - development of moral

standards by which actions and
situations can be judged

Sales managers:

Relationships with salespeople

Interactions between salespeople and
customers
 Managers must influence ethical
performance by example
 Ethical standards reflect integrity of
firm

1-25
 Valuing Integrity

 Organization’s interpretation of
integrity needs to be explicit
 Integrity is basis of trust
 Product of leadership
 Must be earned
 Leader can’t function without it
 Integrity quotient
 Delineate promises
 Measure degree to which they are
kept
Sources: Muel Kaptein, “An Integrity Injection for Business,” Business Week, December 29, 2006,
www.businessweek.com; Karen Trisko, “Power of Integrity,” Executive Excellence, May 2001, p. 16. 1-26
 Natural Environment

 Nature influences demand for

products
 Weather
 Natural disasters
 Availability of raw materials
 Energy resources
 Shortages may cause demarketing
 Social concern about possible
negative environmental impact of
product and production
1-27
 1.4

Components of
the internal
environment

1-28
 Goals/Objectives/Culture

 Mission and objectives drive

customer management
approaches
Well-defined mission

Successful corporate history

Top management values

+
Strong corporate culture
1-29
 Human Resources

 Sales organizations are highly

complex and dynamic
 Often difficult to expand in
response to growing markets
 Outside specialists can help
meet need to expand

1-30
 Financial Resources

 Lack of financial resources can:

 constrain ability to develop new
products
 limit promotional budget
 limit size of sales force
 Mergers are sometimes sought
to obtain financial resources

1-31
 Production and Supply Chain
Capability

 Production capacity
 Technology equipment
 Location of production facilities
 Transportation costs
 Ability to ensure seamless
distribution and service after
the sale

1-32
 Strong Service Capabilities

 Competitive advantage
opportunity
 Difficult for other firms to
compete for same customers
 Customers reluctant to switch
regardless of price

1-33
R&D and Technological Capabilities

 Excellent design and

engineering provide
promotional appeal
 Communicating technological
sophistication as value-add
helps prevents over-reliance on
price for sales

1-34
 Mark W. Johnston | Greg W. Marshall

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.