what is sales management (2)

8/2/2019 What is Sales Management (2)

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What is Sales Management?



Objectives

Provide an introduction to sales management

Who does a sales manager manage?

Where does sales management fit into the integrated marketing

communication process



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.



Sales Management

PersonalSales

Representatives

Sales

Managers

CustomerFirm

Value



Sales Management

CustomerPersonal

Sales

Representatives

Sales

ManagersFirm

Value



Sales Management

What are the sales managers goals?

Sales

Revenues

Profits

Market Share

Controlling internal costs

Personal

Sales

Representatives

Sales

Managers



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



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, andproviding the proper planning and backup support so they can perform their jobsproperly.

OverviewSales

Environment



Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising


1) Past Present2) Sales Environment

3) International

4) Organizing

5) Future

OverviewSales

Environment



Sales Environment

Past (L9)

Industrial Revolution

After WWI the need for mass distribution became evident

1950s and the marketing concept



Sales Environment

Present (L9)

Relational Approach

Current Jobs in Sales

Opportunities in Sales Management



Sales Environment

Organizing the Sales Force (L10)

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)



Sales Environment

The Sales Environment (L11)

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




Sales Environment

International (L12)

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




Sales Environment

Future (L27)

What does the sales organization of the future look like?



Sales Management

Planning


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 proper planning and backup support so they can perform their jobs properly.

1) Automation2) Forecasting

3) Financial Planning

4) Quotas

5) Time and Territory

OverviewSales

Environment



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)



Planning

Automating the Sales Force (L13)

Hardware

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

Software

What type software does the sales force need?



Planning

Sales Forecasting (L14)

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



Planning

Financial Planning for Sales (15)

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 (L16)

Sales quota- the specific sales or profit objective a salesperson is expected to achieve(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)



Planning

Time and Territory Management (L17)

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 salespeople’s work loads

How many salespeople will the territory support

Territory’s boundaries

Optimum way to travel from one prospect to the next(Source: Hite and Johnston)



Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising


1) Recruiting

2) Selecting

OverviewSales

Environment



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

(Source: Futrell)



Recruiting

Recruiting (L18)

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




Recruiting

Selecting (L19)

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




Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising


1) New sales forcetraining

2) Developingcurrent salesforce

OverviewSales

Environment



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)



Training

Training (L20)

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)



Training

Developing (L21)

Everything changes over time so constant training is needed

When can advanced training techniques be used?



Sales Management

Planning


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 proper planning and backup support so they can perform their

jobs properly.

1) Motivating

2) Compensating3) Indirect Incentives

OverviewSales

Environment



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.

(Source: Ford, Walker, and Churchill)



Motivating

Motivating (L22)

Recognition

Awards

Special communications




Motivating

Compensating (L23)

Salary

Commission

Bonus

Combinations




Motivating

Indirect Incentives (L24)

Expenses allowances

Sales contests

Themes

Prizes

Advantages

Disadvantages




Supervising

Leadership (L25)

Leadership- the process of getting things done through others

Leadership Styles

Types of leadership


Supervision (L25)

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

salespeople

(Source: Futrell)



Sales Management

Planning


Managers

Recruiting

Training

Motivating

Supervising

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 their jobs

properly.

1) Leadership2) Supervision3) Evaluating

OverviewSales

Environment



Supervising

Evaluating (L26)

Analysis of sales volume

Marketing cost analysis



Sales Management

Planning

Personal

Sales RepsSales

Managers

Recruiting

Training

Motivating

Supervising

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 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

OverviewSales

Environment



Definition

Personal Selling (L4)

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 or more

prospective customers




The Sales Process

Prospecting/ Qualifying (L5)

Preapproach/ Planning (L6)

Presentation (L7)

Handling Objections (L8)

Closing the Sale (L8)

Approach (L7)

Follow up

I d en t i f yi n g

N e e d

s

I d en t i f yi n g

N e e d

s



Types of Communication

Promotion

Personal Selling AdvertisingPublic Relations

Marketing

Product Place Price

Sales Promotion Direct Marketing



Managing the Marketing Communication Process

Integrated marketing communications (L3)

Integrated marketing communications- the intentional coordination of every communication from a firm to a target customer to convey a consistentand complete message




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what is sales management (2)

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