916096 what is sales management

7/29/2019 916096 What is Sales Management

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What is Sales Management?

Introduction to Personal SellingPrepared by: Prof Sameer Kulkarni.


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Objectives

Provide an introduction to sales management

Who does a sales manager manage?

Where does sales management fit into the integrated marketing

communication process


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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.


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Sales Management

PersonalSales

Representatives

Sales

Managers

CustomerFirm

Value


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Sales Management

CustomerPersonal

Sales

Representatives

Sales

ManagersFirm

Value


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Sales Management

What are the sales managers goals?

Sales

Revenues Profits

Market Share

Controlling internal costs

Personal

Sales

Representatives

Sales

Managers


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Sales Management

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

Personal

Sales

Representatives

Sales

Managers


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Sales Management

Planning

PersonalSales RepsSales

Managers

Recruiting

Training

Motivating

Supervising

Managing a sales force involves recruiting, hiring, training, supervising,

compensating salespeople, motivating them to become problem solvers, and

providing the properplanning and backup support so they can perform their jobs

properly.

Overview

Sales

Environment


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Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising



providing the proper planning and backup support so they can perform their jobs

properly.

1) Past Present2) Sales Environment

3) International

4) Organizing

5) Future

Overview

Sales

Environment


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Sales Environment

Past

Industrial Revolution

After WWI the need for mass distribution became evident

1950s and the marketing concept


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Sales Environment

Present

Relational Approach

Current Jobs in Sales

Opportunities in Sales Management


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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)


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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



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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)


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Sales Environment

Future

What does the sales organization of the future look like?


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Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising



providing the proper planning and backup support so they can perform their

jobs properly.

1) Automation2) Forecasting

3) Financial Planning

4) Quotas

5) Time and Territory

Overview

Sales

Environment


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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)


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Planning

Automating the Sales Force

Hardware

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

Software

What type software does the sales force need?


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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


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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



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Planning

Quotas

Sales quota- the specific sales or profit objective a salesperson is expected toachieve

(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)


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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 salespeoples work loads

How many salespeople will the territory support

Territorys boundaries Optimum way to travel from one prospect to the next



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Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising




properly.

1) Recruiting

2) Selecting

Overview

Sales

Environment


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Recruiting

Recruitment- set of activities and processes used to legally obtain a

sufficient number of individuals that takes the peoples and the sales

forces best interests into consideration

(Source: Futrell)


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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 Recommendations Institutions

Professional associations Armed Forces Classifieds

Employment agencies Unsolicited applicants



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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



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Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising




properly.

1) New sales forcetraining

2) Developingcurrent sales

force

Overview

Sales

Environment


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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)


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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)


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Training

Developing

Everything changes over time so constant training is needed

When can advanced training techniques be used?


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Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising


compensating salespeople,motivating them to become problem solvers,

and providing the proper planning and backup support so they can perform their

jobs properly.

1) Motivating

2) Compensating3) Indirect Incentives

Overview

Sales

Environment


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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 salespersons 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)


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Motivating

Motivating

Recognition

Awards

Special communications



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Motivating

Compensating (L23)

Salary

Commission

Bonus

Combinations



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Motivating

Indirect Incentives

Expenses allowances

Sales contests

Themes

Prizes

Advantages

Disadvantages



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Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising




properly.

1) Leadership

2) Supervision

3) Evaluating

Overview

Sales

Environment


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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)


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Supervising

Evaluating (L26)

Analysis of sales volume

Marketing cost analysis


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Sales Management

Planning

Personal

Sales RepsSales

Managers

Recruiting

Training

Motivating

Supervising



providing the proper planning and backup support so they can perform their

jobs properly.

1)Types of Sales People

2) Selling Environments

3) Prospecting

4) Preapproach

5) Approach

6) Presentation

7) Objections

8) Closing9) Follow up

Overview

Sales

Environment


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Definition

Personal Selling (L4)

Personal Selling- is direct oral communication designed to explain

how an individuals or firms goods, services, or ideas fit the needs of

one or more prospective customers



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The Sales Process

Prospecting/ Qualifying (L5)

Preapproach/ Planning (L6)

Presentation (L7)

Handling Objections (L8)

Closing the Sale (L8)

Approach (L7)

Follow up

Identifying

Need

s

Identifying

Need

s


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Types of Communication

Promotion

Personal Selling AdvertisingPublic Relations

Marketing

Product Place Price

Sales Promotion Direct Marketing


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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 aconsistent and complete message



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916096 what is sales management

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