SALES MANAGEMENT

Chapter 1
‘Job of Sales Management’

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 M a r k e t in g
m ix

P ro d u c ts P r ic e s P r o m o t io n D is t r ib u t io n

A d v e r t is in g P u b lic P e rs o n a l S a le s
r e la t io n s s e llin g p r o m o t io n

Sales
management

Planning Motivating
Budgeting Compensating
Recruiting and selecting Designing territories
Training Evaluating performance
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Figure 1-1: Positions of Personal Selling and Sales Management in the Marketing Mix
 SALES MANAGEMENT
Planning MODEL
Implementing Control
Describing
the Personal
Selling
Function

Defining the Determining

Strategic Designing Developing Directing Salesforce
Role of the the Sales the the Effectiveness
Sales Organization Salesforce Salesforce and
Function Performance

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Nature of Personal Selling

 It is a major factor in generating sales

volume.

 It is a part of promotion which brings

human element into marketing
transactions

 It increases customer confidence in the

supplier, and simplifies the handling of
individual customer problems.
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 Does personal selling increases customer
confidence in the supplier?

1. Since the customer is dealing directly, it

builds the confidence in the product,
company, personal and procedure.

3. Forms a basis of trust and confidence

with the customers.

5. Basis for long-term relationship/retention

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 Personal selling makes possible for the
buyer to act promptly

1. Unlike other means of promotion, it can

work for a desired action by the customer
immediately.

2. Sales person can place an order, commit for

a purchasing plan next quarter or decide on
an in-store promotion for the product

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 Personal Selling Simplifies the handling
of individual customer problems.

n Customize sales presentation

n Handle buyers problems and complaints

on a individual basis

n Every customer is different, have varying

needs

n This is a value-added service provided to

the customer. 7
Changes in Selling
(Selling is flexible and creative – not simply persuasive)

1. Today, salespeople are more of problem-

solvers, able to meet customer’s needs and
conditions of individual; they built and
maintain good relationship with customers.

3. Adopt to new market conditions

5. Sales people are involved in other aspects

also like, distribution, credit, customer’s use
of promotion, pricing etc.

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 Marketing Concept

n Customer orientation – shift from internal

company’s perspective to customer
perspective. Understand the customer’s needs,
attitude and buying behavior.

n Coordination of all customer related activities –

coordinating between all the customer service
functions of the business.

n Profit direction – control costs and maintain

budgeted revenue/sales. 9
Modern Sales Approach

1.Partnering – sales people share the same

value as customers, mutually agreed ideas,
anticipate and understand customers needs

2. Relationship selling – maintaining long-

term associations with customers; stronger
contact with the customer

3. Team selling – for large customers, sales

people work with other company personal to
provide a coordinated approach.
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 contd..
4. Value-added selling – exceed customers
expectation when providing service, e.g.
providing after-sales service, installation
facilities etc. Salespeople should go beyond
selling and provide value added service.

5. Consultative selling – salesperson must

adopt their products or services to address
specific needs of the customers. Act as
consultants

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Personal Selling in Marketing Mix

 Firm’s marketing mix – product, price,

promotion and distribution – is used to deliver
solutions to individual customers.

 Marketing mix is a strategy which a company

utilizes to implement its marketing plan and
pursue its marketing objectives.

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 The Role of Personal Selling in
Product Strategy

a) Sales person help specify desirable product

features and benefits
b) Provide guidance in the product development
phase
c) They participate in product testing and test
marketing
d) Their input is valuable when it comes to
product mix decision as they are very much
familiar with the marketplace, competitors, and
the customers
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 The Role of Personal Selling in Pricing
Strategy

a) Sales people and managers can ascertain

competitive pricing strategies.

c) Gauge market reaction to alternative pricing levels

and can advise senior management in pricing
decisions.

e) They can be granted some discretion in adjusting

prices to market conditions.

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Pricing Strategies

n Cost Plus method – markup for profit is added

to the products cost. Sales managers are
responsible for keeping selling cost under
control so that markup does not put the item in
price disadvantage
n Demand Oriented method – based on the
demand of the product and expected price.
n Competition oriented method – markup is
based on the price the competitors will charge

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 The Role of Personal Selling in Distribution
Strategy

a) Channel of distribution is the route from the

producer to the end user, directly (ultimate buyers
acquires the product from the manufacturer) or
indirectly (user of intermediaries for e.g
wholesalers/ retailers)
b) A product is meaningless if it is unavailable to he
customer at the right time, this is where the
salespeople can facilitate
c) They establish link in between the middle man

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The Role of Personal Selling in Promotional
Strategy

a) Promotion is the presentation of informative

and persuasive message to a firms target
market in an attempt to stimulate sales.

c) Personal selling is an important aspect of this,

along with advertising, publicity, and sales
promotion.

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Tasks of a Sales Manager

Analysis: review of firm’s internal sales record

and sales peoples report, and keeping check of
market trends. Note relevant environmental
factors and conditions.

Planning: Setting objectives for the firm sales

efforts and mapping out strategies and tactics for
achieving these objectives. Transmit objectives,
strategies, and procedures to sales staff.

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Organizing: setting up of structures and procedures
for smooth efficient execution of sales programs.
Create specific job descriptions for these tasks and
activities. Recruit and select personal for these
activities.

Direction: staffing and supervision day-to-day

implementation of sales, policies and programs.
Oversee the operations of the sales team to
improve its performance. Issue the necessary
directions and guidelines.
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Control: performance comparison of actual
and planned sales results, reasons for
deviation. Collect and analyze information

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External factors effecting Sales
Management

1. New government rulings

2. Competitor cuts prices

3. New products introduced in the market

4. New distribution options

5. Telemarketing and e-commerce

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 Rewards of Sales Management

i. Sales managers get to know and work with

variety of people inside and outside the
company

iii. It is personally rewarded, and recognized my

others (tangible)

v. Financial rewards

vii. Training and Development

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Why is Training of Salespeople important?

a. Keep them competitive

b. Career development
c. Built various skills mentioned above
d. Adopt to change in external environment /
new trends
e. Presentation and negotiation skills
f. Awareness of languages and cultural
differences in international selling
g. Exchange of ideas 23
Challenges for Salespeople

a. Have to satisfy varying customers needs

c. Need to be patient and polite to the

customers
d. Have to meet their budgets

f. Their jobs are effected my changing market

conditions, competitors activities, and
economic factors.
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A Sales Quota Manager’s Skill Set

 Willingness to Train/Coach
 Willingness to Make Joint
Sales Calls
 Problem-Solving
 Making Presentations
 Answering Objections

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 Win-Win Relationships

Sales person

Secondary Company
Management
Customers decision support
personnel
makers staff
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 Win-Win Philosophy
Win-Win People
 Help others solve
problems
 Fix what caused
problems
 Make life a happening
 Learn from the past, live
in the present, and set
goals for the future
 Make and keep
commitments
Win-Lose People
 See problems in
solutions
 Fix the blame
 Let life happen to them
 Live in the past
 Make promises they
never keep
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 COMMUNICATION

Percent of Message

55%
What you see or feel
Facial expression What you hear
Dress and grooming Tone of voice
Posture Vocal clarity
Eye contact Verbal
Touches expressiveness
Gestures 38%

7%

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Basic Rules of Etiquette

 Avoid temptation to address new prospects by

first name
 Avoid offensive comments or stories
 Do not express personal views on politics or
religion
 At business luncheons do not discuss business
before the meal is ordered unless client initiates
subject

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Relationship Building Guidelines

 Be genuinely interested in other people

 Be a good listener
 Encourage others to talk about themselves
 Talk about other people’s interest

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APPENDIX

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 STRATEGIC ACTION COMPETENCY
Dimensions
Understanding the Industry:
• Understands the history and general trends in the industry and their
implications for the future
• Stays informed of and anticipating the actions of competitors and
strategic partners
• Identifies attractive market segments and their buying needs

Understanding the Organization:

• Understands the vision, overall strategy, and goals of the organization
• Appreciates the distinctive competencies of the organization with
respect to market opportunities and limitations
• Understands how to marshal organizational resources to meet the
needs of the customers

Taking Strategic Actions:

• Assigns priorities and making decisions that are consistent with the
firm's mission and strategic goals
• Implements specific account selection, retention, and dominance
strategies
• Develops an appropriate portfolio of account relationships
• Considers the long-term implications of actions in order to sustain and
further develop the organization
• Establishes tactical and operational goals that facilitate the firm's 32
strategy implementation
 COACHING COMPETENCY
Dimensions
Providing Verbal Feedback:
• Provides specific and continuous performance and selling skills
feedback.
• Builds a feeling of appreciation and recognition by taking the time to
acknowledge a job well done, an effort beyond the call of duty or an
important victory
• Reinforces successes and nice tries to support desirable behaviors.

Role Modeling:
• Leads by example, rather than decree
• Provides role models, either themselves or others, and sharing best
practices
• Models professional attitudes and behaviors

Trust Building:
• Maintains good rapport with the sales team and fostering open
communications, collaboration, creativity, initiative, and appropriate
risk taking
• Adds value through communicating relevant selling experiences
• Helps salespeople to "look good" through two-way communications33
 TEAM BUILDING COMPETENCY
Dimensions
Designing Teams:
• Implements an organizational architecture that will support teams
• Creates a reward system that is fair within the context of a team effort
• Coordinates team goals with the overall goals of the organization
• Coordinates team activities with the requirements of functional areas within the
organization

Creating A Supportive Environment:

• Hires people that will be successful in a team environment
• Trains programs that encourage teamwork
• Integrates the individual members of the sales team together to form a
functioning and supportive team

Managing Team Dynamics:

• Understands the strengths and weaknesses of team members and using their
strengths to accomplish tasks as a team
• Facilitates cooperative behavior and keeping the team moving towards its goals
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 SELF-MANAGEMENT COMPETENCY
Dimensions
Fostering Integrity and Ethical Conduct:
• Has clear personal standards that serve as a foundation for a sense of integrity
and ethical conduct by the sales team
• Projects self-assurance and doesn't just tell people what they want to hear
• Willing to admit mistakes and accepts responsibility for own actions

Managing and Balancing Personal Drive:

• Seeks responsibility, works hard and is willing to take risks
• Shows perseverance in the face of obstacles and bounces back from failure
• Ambitious and motivated to achieve objectives, but doesn't put personal
ambition ahead of the organization's goals
• Understands that goals are achieved through the success and development of the
salespeople

Developing Self-Awareness and Management Skills:

• Has clear personal and career goals and knows own values, feelings and areas of
strengths and weaknesses
• Analyzes and learns from work and life experiences
• Willing to continually unlearn and relearn as changed situations call for new
skills and perspectives
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 GLOBAL PERSPECTIVE COMPETENCY
Dimensions
Cultural Knowledge and Sensitivity:
• Stays informed of political, social, and economic trends and events around the
world
• Recognizes the impact of global events on the market and the organization
• Sensitivity to cultural cues and ability to adapt quickly in novel situations
• Travels regularly and has a basic business vocabulary in languages relevant to
the position

Adapting Global Selling Program:

• Adopts an appropriate sales force architecture for global accounts
• Appropriately adjusts sales force measurement, competency creation and
motivation systems to the local culture
• Appropriate adjusts own behavior when interacting and managing people from
various national, ethnic and cultural backgrounds
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 TECHNOLOGY COMPETENCY
Dimensions
Understanding of New Technology:
• Awareness of the potential for technology to increase sales force efficiency and
effectiveness
• Experience in using new technology
• Attitude towards adopting new technology

Implementing Sales Force Automation:

• Knows what is to be accomplish and the benefits that are possible
• Adapts personal management style and procedures
• Fosters sales force acceptance and use of selling technology

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