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Sales Management Sales Management

Introduction Introduction
Module One Module One
Prof. Rajesh Aggarwal
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Session Objectives Session Objectives
Nature and importance of sales management Nature and importance of sales management
Sales person to sales manager Sales person to sales manager
Emerging trends in sales management Emerging trends in sales management
Prof. Rajesh Aggarwal
3
What is Personal Selling? What is Personal Selling?
Involves two-way personal
communication between salespeople
and individual customers whether:
face to face,
by telephone,
through video conferencing,
or by other means.
Prof. Rajesh Aggarwal
4
The Role of the Sales Force The Role of the Sales Force
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce
Customer Satisfaction
Represent the Company
to Customers to Produce
Company Profit
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1
Types of Selling
THE SELLING
FUNCTION
ORDER
TAKERS
INSIDE
ORDER
TAKERS
MISSIONARY
SALES
PEOPLE
TECHNICAL
SUPPORT
MERCHAND
ISERS
ORDER
CREATORS
ORDER
GETTERS
DELIVERY
SALES
PEOPLE
OUTSIDE
ORDER
TAKERS
FRONT
LINE
SALES
SUPPORT
NEW
BUSINESSES
CHANNELS
INDUSTRIAL
Sales
development
Sales
Maintenance
Sales
Support
1
1
6
The complexity and difficulty of sales job categories
increase as they move left to right.
Order Takers Order Getters
1
1
7
Sales jobs differ from other jobs because
salespeopleƦ
Implement a firm¶s marketing strategies in
the field.
Are revenue generators
Are authorized to spend company funds in
travel, communication and entertainment.
Represent their company to customers and
to society in general.
Represent the customer to their
companies.
Operate with little or no direct supervision
and require a high degree of motivation.
1
1
8
Sales jobs differ from other jobs
because salespeopleƦ
Have a higher level of social intelligence
and tact
Have to develop innovative solutions to
difficult problems.
Face role ambiguity, role conflict, and role
stress.
Face more failures than successes
Require considerable travel and time away
from home
Have to bear pressure from all fronts
1
1
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Knowledge Updating Habits
of Successful Salespeople
Finding the right customers
Listening to customers¶ customers
Cultivating resources in their own
organizations
Keeping an eye on bottom lines
Anticipating problems
Adopting a long-term view
Reviewing each sales call after-the-fact
1
1
10
Traits of Successful Salespeople
Ambitious
Analytical
Disciplined
Drive/Enthusiasm
Good communicator
Empathy
Ethical/Integrity
Hard working
Initiative
Killer Instinct
Persistent/Persuasive
Personal Charisma
Relationship
Oriented
Resilience
Self confidence
Team Players
1
1
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Selling Success Factors
1. Listening skills
2. Follow-up skills
3. Ability to adapt sales style to situation
4. Tenacity
5. Well organized
6. Verbal communication skills
7. Able to interact with people at all levels of an
organization
8. Ability to overcome objections
9. Closing skills
10.Personal planning and time management skills
Prof. Rajesh Aggarwal
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A Day in a Sales Manager¶s Life A Day in a Sales Manager¶s Life
Von Oliver is currently national sales manager for a Von Oliver is currently national sales manager for a
division of Lockheed Martin Corp. Von¶s typical day starts division of Lockheed Martin Corp. Von¶s typical day starts
at 7:30 A.M. going through e at 7:30 A.M. going through e- -mail and prioritizing the days mail and prioritizing the days
events. During the morning he will review reports, and events. During the morning he will review reports, and
spend time with his sales reps. He will have lunch with spend time with his sales reps. He will have lunch with
customers and spend the afternoon making sales calls customers and spend the afternoon making sales calls
with his sales reps. He spends late afternoon reconciling with his sales reps. He spends late afternoon reconciling
the days activities and setting his agenda for the next day. the days activities and setting his agenda for the next day.
Action Action
Prof. Rajesh Aggarwal
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A Day in a Sales Manager¶s Life A Day in a Sales Manager¶s Life
Von Oliver is involved in a variety of different activities. Von Oliver is involved in a variety of different activities.
He spends much of his time interacting with He spends much of his time interacting with
individuals, especially salespeople and customers. individuals, especially salespeople and customers.
But, he also plans strategies and continuously But, he also plans strategies and continuously
monitors performance. In other words, he performs all monitors performance. In other words, he performs all
the major sales management functions. the major sales management functions.
Result Result
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The Marketing Concept The Marketing Concept
Production Era Production Era ± ± up to 1970 up to 1970
Focus on mass Focus on mass- -producing a limited variety of producing a limited variety of
products for as little cost as possible. products for as little cost as possible.
Consultative Selling Era (70s) Consultative Selling Era (70s)
Age of the hard Age of the hard- -sell. sell.
Strategic Selling Era (80s) Strategic Selling Era (80s)
The marketing concept first emerges. The marketing concept first emerges.
Partnering Era (Mid 90s to Present) Partnering Era (Mid 90s to Present)
The buyer and seller commit to doing business The buyer and seller commit to doing business
over a long time over a long time
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Sales Management in the 21 Sales Management in the 21
st st
Century Century
Behavioural Behavioural ± ± Rising customer Rising customer
expectation, globalisation, demassification expectation, globalisation, demassification
of markets of markets
Technological Technological ± ± sales force automation, sales force automation,
sales offices, electronic channels sales offices, electronic channels
Managerial Managerial ± ± Shift to Direct Marketing, Shift to Direct Marketing,
outsourcing of sales and merging of sales outsourcing of sales and merging of sales
and marketing and marketing
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Sales Force Management Challenges in the 21 Sales Force Management Challenges in the 21
st st
Century Century
Customer relationship management (CRM) Customer relationship management (CRM)
Sales force diversity Sales force diversity
Electronic communication systems and Electronic communication systems and
computer computer- -based technology based technology
Selling teams Selling teams
Necessary skills to sell intangibles Necessary skills to sell intangibles
Complex channels of distribution Complex channels of distribution
An international perspective An international perspective
Ethical behavior and social responsibility Ethical behavior and social responsibility
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Sales Management in the 21 Sales Management in the 21
st st
Century Century
Creating more nimble and adaptable sales Creating more nimble and adaptable sales
organizational structures organizational structures
Removing functional barriers within the Removing functional barriers within the
organization to create greater job organization to create greater job
ownership and commitment from ownership and commitment from
salespeople salespeople
Integrating salesperson performance Integrating salesperson performance
evaluation to incorporate all activities and evaluation to incorporate all activities and
outcomes outcomes
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Sales Management in the 21 Sales Management in the 21
st st
Century Century
Small business is where the business is Small business is where the business is
IBM changing its focus to organisations with 100 to 1000 IBM changing its focus to organisations with 100 to 1000
employees employees
HP Small Office Initiative HP Small Office Initiative
Smaller companies purchase with a higher Smaller companies purchase with a higher
speed and frequency speed and frequency
Prefer to research products online Prefer to research products online
Want to be partnered not entertained Want to be partnered not entertained
Simple in their approach Simple in their approach
Prefer a single point of contact Prefer a single point of contact
No more cold calls No more cold calls
Source: Jennifer Gilbert, ³Small but Mighty´ Sales and Marketing Jan 2004
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The Internet has allowed many companies to shift The Internet has allowed many companies to shift
sales support for small accounts to e sales support for small accounts to e- -commerce sites commerce sites
and away from sales personnel. Additionally, many and away from sales personnel. Additionally, many
regularly occurring functions have become regularly occurring functions have become
automated, allowing customers with any size automated, allowing customers with any size
organization to use web organization to use web- -based systems to place orders based systems to place orders
and submit warranty requests. Can you think of any and submit warranty requests. Can you think of any
other areas where Internet other areas where Internet- -based based
technologies could change the technologies could change the
way a sales force interacts way a sales force interacts
with their customers? with their customers?
Prof. Rajesh Aggarwal
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Percentage of Companies Using the Internet for Sales Activities Percentage of Companies Using the Internet for Sales Activities
0%
20%
40%
60%
80%
100%
Help on the Net
Source: ³G-BB,´ Sales and Marketing Management, June 2000, pp. 64&65.
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Sales Management Sales Management
The planning, direction and control of personal The planning, direction and control of personal
selling, including recruiting, selecting, equipping, selling, including recruiting, selecting, equipping,
assigning, routing, supervising, paying and motivating assigning, routing, supervising, paying and motivating
as these tasks apply to the personal sales force as these tasks apply to the personal sales force
American Marketing Association American Marketing Association
The management of the personal selling component The management of the personal selling component
of an organisation¶s marketing programme of an organisation¶s marketing programme
Prof. Rajesh Aggarwal
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Sales Force Management Sales Force Management
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The Nature of Sales Management The Nature of Sales Management
Has evolved from recruitment , training, Has evolved from recruitment , training,
supervising and motivating the sales force supervising and motivating the sales force
to also include : to also include :
Strategic Planning Strategic Planning
Forecasting Forecasting
Budgeting Budgeting
Territory Planning Territory Planning
Sales Cost Analysis Sales Cost Analysis
He has to have the ability to select the right He has to have the ability to select the right
person and keep him motivated through person and keep him motivated through
the highs and the lows the highs and the lows
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Roles and Skills of a Sales Manager Roles and Skills of a Sales Manager
No longer the driver but the support No longer the driver but the support
From boss to leader From boss to leader
Detailed understanding of the customer Detailed understanding of the customer
Partnering the sales reps Partnering the sales reps
Flexibility to deal with hybrid sales force of Flexibility to deal with hybrid sales force of
reps, telemarketing, MSRs reps, telemarketing, MSRs
Seeking ways to exceed customer Seeking ways to exceed customer
expectations expectations
Better at people skills than at analytical or Better at people skills than at analytical or
evaluative skills evaluative skills
Prof. Rajesh Aggarwal
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Transactions Transactions Relationships Relationships
Local Local
Global Global
Management Management
Leadership Leadership
Individuals Individuals Teams Teams
Sales Volume Sales Volume Sales Productivity Sales Productivity
Sales Management Trends Sales Management Trends
Prof. Rajesh Aggarwal
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TRANSACTION TO RELATIONSHIP TRANSACTION TO RELATIONSHIP
Transaction Oriented Transaction Oriented
Get new accounts Get new accounts
Get the order Get the order
Cut the price Cut the price
Short term Short term
Sell to anyone Sell to anyone
Relationship oriented Relationship oriented
Retain existing accounts Retain existing accounts
The preferred supplier The preferred supplier
Price for profit Price for profit
Long term profit Long term profit
Concentrate on high Concentrate on high
profit potential accounts profit potential accounts
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Effective Sales Managers: Effective Sales Managers:
Utilize a Strategic Perspective Focused on Utilize a Strategic Perspective Focused on
Customers Customers
Attract, Keep, and Develop Sales Talent Attract, Keep, and Develop Sales Talent
Leverage Technology Leverage Technology
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Selling and Managing Selling and Managing
Activity Activity Sales rep Sales rep Sales Manager Sales Manager
Primary responsibility Primary responsibility Develop accounts Develop accounts Develop people Develop people
Working relationships Working relationships Alone Alone Through others Through others
Role Role Player Player Coach Coach
Part of Management Part of Management No No Yes Yes
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Designations Designations
Front Line Middle Senior
Sales Rep Sales Rep Area Manager Area Manager Branch Manager Branch Manager
Area Executive Area Executive Major Account Manager Major Account Manager Regional Manager Regional Manager
Medical Rep Medical Rep District Manager District Manager Zonal Manger Zonal Manger
Territory Manager Territory Manager Unit Sales Manager Unit Sales Manager General Manager General Manager
Officer Officer Supervisor Supervisor Vice President Vice President
Prof. Rajesh Aggarwal
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Sales Personnel Career Path
Middle Level
Senior/Top Level
Front Line
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Importance of Personal Selling and Sales Importance of Personal Selling and Sales
Management Management
In our Economy In our Economy
Buyers¶ market from mid 70s. The problem has shifted Buyers¶ market from mid 70s. The problem has shifted
from production to selling from production to selling
Production and sales are seen as the two pillars with all Production and sales are seen as the two pillars with all
other areas supporting these functions other areas supporting these functions
In an individual organisation In an individual organisation
All marketing plans go awry if not implemented by the All marketing plans go awry if not implemented by the
sales force sales force
Biggest expense post manufacturing Biggest expense post manufacturing
To you, the students To you, the students
The line which you will join and stay with for at least The line which you will join and stay with for at least
another five years another five years
Prof. Rajesh Aggarwal
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The best executive is the one who has enough
sense to pick good people to do what he wants done
and self-restraint enough to keep from meddling
with them while they do it.
Theodore
Roosevelt

Session Objectives
Nature and importance of sales management Sales person to sales manager Emerging trends in sales management

2

What is Personal Selling?

Involves two-way personal communication between salespeople and individual customers whether: 
face to face, by telephone, through video conferencing, or by other means.

Prof. Rajesh Aggarwal

3

The Role of the Sales Force Represent the Company to Customers to Produce Company Profit Sales Force Serves as a Critical Link Between a Company and its Customers Since They: Represent Customers to the Company to Produce Customer Satisfaction Prof. Rajesh Aggarwal 4 .

1 Types of Selling 1 Sales Maintenance THE SELLING FUNCTION Sales Support Sales development ORDER TAKERS ORDER CREATORS ORDER GETTERS INSIDE ORDER TAKERS DELIVERY SALES PEOPLE OUTSIDE ORDER TAKERS MISSIONARY SALES PEOPLE FRONT LINE SALES SUPPORT INDUSTRIAL CHANNELS NEW BUSINESSES TECHNICAL MERCHAND SUPPORT ISERS .

Order Takers Order Getters 6 .1 1 The complexity and difficulty of sales job categories increase as they move left to right.

Are revenue generators Are authorized to spend company funds in travel. Represent their company to customers and to society in general. Represent the customer to their companies. Operate with little or no direct supervision and require a high degree of motivation.1 1 Sales jobs differ from other jobs because salespeople Implement a firm¶s marketing strategies in the field. communication and entertainment. 7 .

1 1 Sales jobs differ from other jobs because salespeople Have a higher level of social intelligence and tact Have to develop innovative solutions to difficult problems. Face more failures than successes Require considerable travel and time away from home Have to bear pressure from all fronts 8 . Face role ambiguity. role conflict. and role stress.

1 1 Knowledge Updating Habits of Successful Salespeople Finding the right customers Listening to customers¶ customers Cultivating resources in their own organizations Keeping an eye on bottom lines Anticipating problems Adopting a long-term view Reviewing each sales call after-the-fact 9 .

1 1 Traits of Successful Salespeople Ambitious Analytical Disciplined Drive/Enthusiasm Good communicator Empathy Ethical/Integrity Hard working Initiative Killer Instinct Persistent/Persuasive Personal Charisma Relationship Oriented Resilience Self confidence Team Players 10 .

2. 7. Ability to overcome objections 9. 6. 11 . 4. 5.Personal planning and time management skills 1. Closing skills 10.1 1 Selling Success Factors Listening skills Follow-up skills Ability to adapt sales style to situation Tenacity Well organized Verbal communication skills Able to interact with people at all levels of an organization 8. 3.

He spends late afternoon reconciling the days activities and setting his agenda for the next day.A Day in a Sales Manager¶s Life Von Oliver is currently national sales manager for a division of Lockheed Martin Corp. Rajesh Aggarwal 12 . and spend time with his sales reps. During the morning he will review reports. going through e-mail and prioritizing the days eevents. Action Prof. Von¶s typical day starts at 7:30 A.M. He will have lunch with customers and spend the afternoon making sales calls with his sales reps.

he also plans strategies and continuously monitors performance. But.A Day in a Sales Manager¶s Life Result Von Oliver is involved in a variety of different activities. he performs all the major sales management functions. Prof. especially salespeople and customers. Rajesh Aggarwal 13 . He spends much of his time interacting with individuals. In other words.

hardmarketing concept first emerges. Consultative Selling Era (70s)  Age  The  The Strategic Selling Era (80s) Partnering Era (Mid 90s to Present) buyer and seller commit to doing business over a long time 14 . of the hard-sell.The Marketing Concept Production Era ± up to 1970  Focus on mass-producing a limited variety of massproducts for as little cost as possible.

Sales Management in the 21st Century Behavioural ± Rising customer expectation. demassification of markets Technological ± sales force automation. sales offices. globalisation. outsourcing of sales and merging of sales and marketing 15 . electronic channels Managerial ± Shift to Direct Marketing.

Sales Force Management Challenges in the 21st Century Customer relationship management (CRM) Sales force diversity Electronic communication systems and computercomputer-based technology Selling teams Necessary skills to sell intangibles Complex channels of distribution An international perspective Ethical behavior and social responsibility 16 .

Sales Management in the 21st Century Creating more nimble and adaptable sales organizational structures Removing functional barriers within the organization to create greater job ownership and commitment from salespeople Integrating salesperson performance evaluation to incorporate all activities and outcomes 17 .

Sales Management in the 21st Century Small business is where the business is   IBM changing its focus to organisations with 100 to 1000 employees HP Small Office Initiative Smaller companies purchase with a higher speed and frequency Prefer to research products online Want to be partnered not entertained Simple in their approach Prefer a single point of contact No more cold calls Source: Jennifer Gilbert. ³Small but Mighty´ Sales and Marketing Jan 2004 18 .

many regularly occurring functions have become automated. allowing customers with any size organization to use web-based systems to place orders weband submit warranty requests. Can you think of any other areas where Internet-based Internettechnologies could change the way a sales force interacts with their customers? 19 48 . Additionally.The Internet has allowed many companies to shift sales support for small accounts to e-commerce sites eand away from sales personnel.

Help on the Net Percentage of Companies Using the Internet for Sales Activities 100% 80% 60% 40% 20% 0% Source: ³G-BB. June 2000. Prof. 64&65. pp.´ Sales and Marketing Management. Rajesh Aggarwal 20 .

equipping. paying and motivating as these tasks apply to the personal sales force American Marketing Association The management of the personal selling component of an organisation¶s marketing programme 21 . routing. selecting. supervising. assigning. including recruiting. direction and control of personal selling.Sales Management The planning.

Sales Force Management erutcurtS dna ygetartS ecrofselaS gningiseD elpoepselaS gnitceleS dna gnitiurceR elpoepselaS gniniarT elpoepselaS gnitasnepmoC elpoepselaS gnitavitoM dna gnidaeL elpoepselaS gnitaulavE Prof. Rajesh Aggarwal 22 .

The Nature of Sales Management Has evolved from recruitment . supervising and motivating the sales force to also include :  Strategic Planning  Forecasting  Budgeting  Territory Planning  Sales Cost Analysis He has to have the ability to select the right person and keep him motivated through the highs and the lows 23 . training.

MSRs Seeking ways to exceed customer expectations Better at people skills than at analytical or evaluative skills 24 . telemarketing.Roles and Skills of a Sales Manager No longer the driver but the support From boss to leader Detailed understanding of the customer Partnering the sales reps Flexibility to deal with hybrid sales force of reps.

Rajesh Aggarwal 25 .Sales Management Trends Transactions Individuals Sales Volume Management Local Relationships Teams Sales Productivity Leadership Global Prof.

TRANSACTION TO RELATIONSHIP Transaction Oriented Get new accounts Get the order Cut the price Short term Sell to anyone Relationship oriented Retain existing accounts The preferred supplier Price for profit Long term profit Concentrate on high profit potential accounts Prof. Rajesh Aggarwal 26 .

and Develop Sales Talent Leverage Technology 27 .Effective Sales Managers: Utilize a Strategic Perspective Focused on Customers Attract. Keep.

Selling and Managing Activity Primary responsibility Working relationships Role Part of Management Sales rep Develop accounts Alone Player No Sales Manager Develop people Through others Coach Yes 28 .

Designations Front Line Sales Rep Area Executive Medical Rep Territory Manager Officer Middle Area Manager Major Account Manager District Manager Unit Sales Manager Supervisor Senior Branch Manager Regional Manager Zonal Manger General Manager Vice President 29 .

Rajesh Aggarwal 30 .Sales Personnel Career Path Senior/Top Level Middle Level Front Line Prof.

The problem has shifted from production to selling  Production and sales are seen as the two pillars with all other areas supporting these functions In an individual organisation  All marketing plans go awry if not implemented by the sales force  Biggest expense post manufacturing To you.Importance of Personal Selling and Sales Management In our Economy  Buyers¶ market from mid 70s. the students  The line which you will join and stay with for at least another five years 31 .

Theodore Roosevelt 48 Prof.The best executive is the one who has enough sense to pick good people to do what he wants done and self-restraint enough to keep from meddling with them while they do it. Rajesh Aggarwal 32 .