Salesmanship and Sales

Management
 Key Change Forces affecting
Salesmanship
1. Globalization
2. Intensified competition
3. Inflated customer expectations
4. Technological innovation
 1. Competing in a
Global Economy
• The cumulative effect of globalization
– More players
– More products
– New technology
– Global markets
 2. Intensified Competition
• Hypercompetition
• Competitive advantage
• Sustainable competitive advantage
• Real competitive advantage
 3. Ever-changing Customer
• Expectations
Market turbulence
– The rate of change in the composition of
customers and their preferences
• Salespeople must:
– Learn new products
– Learn new sales techniques
– Learn new sales strategies
– Un-learn old; that no longer viable
 4. Technological Innovation
• Technological turbulence is the rate of
technological change in an industry
• What impact (positive and negative) has
new emerging technologies had on
salespeople?
Type of Selling Jobs
 Type of Selling Jobs
• Retail
• Direct
• Wholesaler
• Manufacturer
 Type of Selling Jobs
• Selling in Retail
– A retail salesperson sells goods or services to
consumers for their personal, non-business use.
– Direct sellers sell face to face to consumers – typically
in their homes – who use the products for their personal
use.
• Selling Direct
– Typically in B2B situations
 Type of Selling Jobs
• Selling for a Wholesaler
– For resale
– For use in producing other goods
– For use within an organization
• Selling for a Manufacturer
– Working for the firm who manufacturers the product
– Usually one of the most prestigious jobs to hold
Sales Job Categories
Based on the Nature of Job
Sales Job Categories
 Order Taker
• A salesperson who only processes the purchase
that the customer has already selected
• An inside salesperson who waits on the customer
sometimes
 Order Getter
• A salesperson who actively seeks to provide
information to prospects, persuade prospective
customers, and close sales
• Personal service oriented stores
• May practice suggestion selling
 Delivery Salesperson
• It is an outside activity
• Involves supplying product to the customer
 Consumer Goods or Route
Salesperson
• Operates as an order taker, but in the
marketplace
• Calling typically on trade
 Sales Engineers (Technical
Selling)
• Help prospective customers to define their needs
and then suggest the best means of meeting those
needs by providing the technical inputs
• Usually technically qualified
• Support the regular sales force or help sell the
product
• Common in B2B situations
 Missionary Salesperson
• They do not seek to obtain a direct order from
their customers
• Primary goal is to persuade customers to place
orders with distributors or wholesalers
• Create goodwill or educate the potential customer
 Creative Selling
• Salesperson who understand the customers
present and future operations and then
present creative solutions to enhance value
addition
• Creative sales person of tangibles
• Creative sales person of intangibles
Based on Selling Environment
 Selling Environments and Selling Types

Selling Environments Selling Types

Over-the-counter  Order taker

 Order getter
Field Selling  Professional salespeople
 National account managers
 Missionary salespeople
 Support salespeople
Telemarketing  Outbound
 Inbound
 Support Sales
• Support the sales force in a number of ways
• Technical support salespeople assist with technical
aspects of sales presentations
• Merchandisers may set up product displays
 Tele Selling
• Utilizing the telephone for prospecting, selling,
and/or following up with customers
• Outbound: the salesperson uses the telephone to
call customers
• Inbound: Firms which have customers calling the
vendor company to place orders (toll-free phone
numbers)
 Sales Management

The management of the personal

selling function.
 Sales Management

• Recruit, train, motivate, and evaluate their

sales representatives
• Manage territories
• Develop sales plans and sales forecasts
• Identify business opportunities and create
appropriate strategies
• Encourage the sales team to create added-
value for the customer
 Sales Management

• Sales Manager – is the person responsible

to help plan and implement the firm’s sales
strategy, and to manage and develop the
firm’s sales force
Sales Management Responsibilities
Strategic
planning
Organizing
Performanc
the sales
e evaluation
force

Communication
Coordination
Integration
Motivation Recruiting,
and selection,
supervision assimilation

Training and
developmen
t
 Sales Management Model
Describing
the
Personal
Selling
Function

Determining
Defining the
Developing Directing Sales Force
Strategic Role
the Sales the Sales Effectiveness
of the Sales
Force Force and
Function
Performance
 Qualities of a Good
Sales Manager
• Most successful supervisory-management
personnel have certain behaviours in
common:
– Structure
– Consideration
 Qualities of a Good
Sales Manager (continued)

• Structure – a leadership characteristic

displayed by sales managers who clearly
define their own duties and those of the
sales staff, and who assume an active role in
directing their subordinates
 Qualities of a Good
Sales Manager (continued)

• Behavioural evidence of structure:

– Planning takes place on a regular basis
– Expectations are clearly communicated
– Decisions are made promptly and firmly
– Performance of salespeople is appraised
regularly
 Qualities of a Good
Sales Manager (continued)

• Consideration – a leadership dimension

displayed by sales managers who have
relationships with salespeople that are
characterized by mutual trust, respect for
the salesperson’s ideas, and consideration
for their feelings
 Qualities of a Good
Sales Manager (continued)

• Behavioural evidence of consideration:

– Regular and effective communication receives
a high priority
– Each salesperson is treated as an individual
– Good performance is rewarded often
 Qualities of a Good
Sales Manager (continued)
• Mastery of structure and consideration is an
important first step followed by Situational
Leadership
– Matching your leadership style to the particular
situation that you face with individual members
of your sales force
• The final test is that of character
– Personal standards of behaviour, honesty and
integrity
 Qualities of a Good
Sales Manager (continued)

• Coaching – is an interpersonal process

between a sales manager and a salesperson
in which the manager helps the salesperson
to improve performance in a specific area
 Sales Force Management
Challenges in the 21 Century
st

• Selling by executives
• Customer relationship management (CRM)
• Sales force diversity
• Complex channels of distribution
• An international perspective
• Ethical behavior and social responsibility
 Sales Management Trends

Transactions Relationships

Individuals Teams

Sales Volume Sales Productivity

Management Leadership

Local Global
 Transaction-Focused vs.
Relationship Focused
Transaction-Focused Relationship-Focused
• Short term thinking • Long term thinking
• Making the sale has • Developing the
priority over most relationship takes
other considerations priority over getting
• Interaction between the sale
buyer and seller is • Interaction between
competitive buyer and seller is
• Salesperson is self- collaborative.
interest oriented • Salesperson is
customer-oriented
2-11A
Criteria for Building Partnerships
1. Individual excellence: Both partners add value, and their
motives are positive (pursue opportunity) rather than
negative (mask weakness).
2. Importance: Both partners want the relationship to work
because it helps them meet long-term strategic objectives.
3. Interdependence: The partners needs each other; each
helps the other reach its goal.
4. Investment: The partners devote financial and other
resources to the relationship.
5. Information: The partners communicate openly about
goals, technical data, problems, and changing situations.