lesson 1what is sales management

8/2/2019 Lesson 1What is Sales Management

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Objectives

Provide an introduction to sales management

Who does a sales manager manage?

Where does sales management fit into theintegrated marketing communication process?



The Sales Force

Sales Management- is the attainment of sales forcegoals in an effective and efficient manner throughplanning, 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, andproviding the proper planning and backup supportso they can perform their jobs properly.



Sales v/s Marketing

1Emphasis-Product Consumer needs

2Make then sell Need/Want then Make

3Driven by Sales Volume Consumer Satisfaction 4Planning Short term Long Term

5Stresses need of Seller Need of Buyer

6Cost determine Price Consumer determinePrice

7Reduce Cost Better value to consumer

8Consumer -last link First link



Sales Management

Firm

Sales

Managers

PersonalSales

RepresentativesCustomer

Value



Sales Management

What are the sales managers goals?

Sales

Revenues

Profits

Market Share

Controlling internal costs

Sales

Manager

PersonalSales

Representative



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

Sales

Manager

PersonalSales

Representative



Sales Management

Managing a sales force involves recruiting, hiring, training, supervising,compensating salespeople, motivating them to become problem solvers, andproviding the proper planning and backup support so they can perform theirjobs properly.

SalesManager

PersonalSalesRep

Overview

SalesEnvironment

Motivating

Recruiting

Training

Supervising

Planning



Sales Management


SalesManager

PersonalSalesRep

Overview

Sales

Environment

Motivating

Recruiting

Training

Supervising

Planning

1) Past Present

2) Sales Environment3) International

4) Organizing

5) Future



Sales Environment

Past

o

Industrial Revolutiono After WWI the need for mass distribution became

evident

o 1950s and the marketing concept



Sales Environment

Present

o Relational Approacho Current Jobs in Sales

o Opportunities in Sales Management



Sales Environment

Organizing the Sales Force And designing

Organization Structure

o Organizing- the assignment of tasks, the grouping

of task into departments, and the allocation of

resources to departments

o Structure of the sales managers jobo Chain of command



Sales Environment

Legal Issues

o Consumer protection laws

o Antitrust laws

o Unfair trade practices

o Fraud and misrepresentationo Uniform Commercial Code

o Direct-to-consumer sales

o Antidiscrimination law

Ethical Issues

o Creating ethical corporate structures

o Relationships with customers

o Relationships with competitors

o Relationships with the firm

o Relationships with society



Sales Environment

International

o Ethnic composition

o Religious orientation

o

Social class environmento Education

o Gender bias

o Differences in negotiating styles

o Differences in decision making

o Job status and company protocol

o Social aspects

o Perceptions of time

o Personal relationship



Sales Environment

Future

o What does the sales organization of the future look

like?

o CSO, Contract Sales Organization

o Dynamics of Sales Environment is changing



Sales Management


SalesManager

PersonalSalesRep

Overview

SalesEnvironment

Motivatin

g

Recruiting

Training

Supervisin

g

Planning

1) Automation

2) Forecasting3) Financial Planning

4) Quotas

5)Time and Territory



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 ofresources needed to attain them



Planning

Sales Forecasting/Demand Forecasting

How do we forecast sales?

o Qualitative and Quantitative

o Sales force composite

o Jury of executive opiniono Survey of buyer intentions

o Delphi Technique

o Historical Analogy

o Test Marketing

o Trend projections

o Moving averages

o Exponential smoothing

o Regression

o Econometric models



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



Planning

Quotas(Targets)

Sales quota- the specific sales or profit objectivea salesperson is expected to achieve

Sales assignment or goals , which are to beachieved in specific time

Self Supervisory method of measuring yourperformance

SBO selling by objective

On the basis of Margin , Selling effort and Producttype

Type of Quotas are -Rupee sales ,Unit Volume,Expense quotas, Profit quotas ,Activity quotas



Planning

Sales Territory Management

Sales Territory-

It is a group of prospects assigned to a sales person, saleteam , distributor,dealer or a marketing organization at a given period of time .Designing ismostly done on the basis of geography

Advantages-

Ensures better market coverage , effective utilization of sale force ,efficientdistribution of workload, convinient way to evaluate performance, bettercontrol over cost, monitor sales quota

Objective-Optimum time must be spent with those prospects with thegreatest potential

Territory management involves:

Identification and classification of prospects

Analysis and development of the salespeople·s work loads

How many salespeople will the territory support

Territory·s boundaries

Optimum way to travel from one prospect to the next



Planning

Automating the Sales Force

A Sales Force Automation System (SFA ), typically a part of acompany·s CRM, customer relationship management system,is a system that automatically records all the stages in a

sales process. SFA includes a CMS contact management system, which

tracks all contact that has been made with a given customer,the purpose of the contact, and any follow up that might berequired. This ensures that sales efforts are not duplicated,

reducing the risk of irritating customers Hardware and Software Support

o Type of computers, printers, copiers, phones, etc.What typesoftware does the sales force need?



Sales Management


SalesManager

PersonalSalesRep

Overview

SalesEnvironment

Motivating

Recruiting

Training

Supervising

1) Recruiting

2) Selecting

Planning



Recruiting

Recruitment- set of activities and processes used to

legally obtain a sufficient number of individuals that

takes the people·s and the sales force·s best

interests into consideration



Recruiting

Recruiting

Planning as per Strategic position , Turnover , Job analysis , Job qualificationand profile ,Number of persons,

Objective-The sales manager should recruit individuals whose values and goalsmatch those of the firm

Where do you find sales recruits?

Internal departments (lateral or vertical) ,

Recommendations ,

Institutions ,

Professional associations ,

Armed Forces ,Classifieds , Employment agencies ,

Walk-ins

,Networking,

Web sources



Recruiting

Selecting

What is the firm looking for?

o People that can sell successfully

o Remain with the company over a long period oftime

Problems

o

Legal and ethical restrictionso Firm must maintain a good image

o Must have a valid job description



Sales Management


SalesManager

PersonalSalesRep

Overview

SalesEnvironment

Motivating

Recruiting

Training

Supervising

1)New sales force training

2) Developing current salesforce

Planning

Recruiting



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



Training

What is needed for a training program to work?

o Provide a job description

o Provide product knowledge

o Provide company knowledge

o Provide market knowledge

o Selling techniques

Why train ?

o To Decrease turnover of employees

o Increase saleso Enhance customer relationships

o Decrease costs



Training

Developing

o Everything changes over time so constant training is

needed

o When can advanced training techniques be used?



Sales Management

Managing a sales force involves recruiting, hiring, training, supervising, compensatingsalespeople, motivating them to become problem solvers, andproviding the proper planning and backup support so they can perform their jobsproperly.

SalesManager

PersonalSalesRep

Overview

SalesEnvironment

Motivating

RecruitingSupervising

1) Leadership

2) Supervision3) Evaluating

Planning

Recruiting

Training



Supervising

Leadership

Leadership- the process of getting things done

through others

Leadership Styles

Types of leadership

Supervision

Supervision- the actual oversee and directing of theday-to-day activities of salespeople



Supervising

Evaluating

o Analysis of sales volume

o Marketing cost analysis



Sales Management


SalesManager

Personal

SalesRep

Overview

SalesEnvironment

Motivating

Recruiting

1) Motivating

2) Compensating

3) Indirect Incentives

Planning

Recruiting

Training

Supervising



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 salesperson·s 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.



Motivating

Motivating

Recognition

Awards

Special communications



Motivating

Compensating

o Salary

o Commission

o Bonus

o Combinations



Motivating

Indirect Incentives

Expenses allowances

Sales contests

o Themes

o Prizes

o Advantages

o Disadvantage



Sales Management


SalesManager

PersonalSales Rep

Overview

SalesEnvironment

Recruiting5) Approach

6) Presentation

7) Objections

8) Closing9) Follow up

Planning

Recruiting

Training

Supervising

Motivating

1)Types of SalesPeople

2) Selling Environment3) Prospecting

4) Preapproach



Definition

Personal Selling

Personal Selling- is direct oral communication

designed to explain how an individual·s or firm·s

goods, services, or ideas fit the needs of one ormore prospective customer



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

lesson 1what is sales management

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