What is Sales Management?

Introduction to Personal Selling

Prepared by: Prof Sameer Kulkarni.
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

Personal Customer
Firm Sales
Sales
Managers
Representatives

Value
 Sales Management
Personal Customer
Firm Sales
Sales
Managers
Representatives

Value
Sales Management
Personal
Sales
Sales
Managers
Representatives

 What are the sales managers goals?

 Sales
 Revenues
 Profits
 Market Share
 Controlling internal costs
Sales Management
Personal
Sales
Sales
Managers
Representatives

 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 Management

Overview
Sales
Environment

Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

Training

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
1) Past Present
2) Sales Environment
Overview 3) International
Sales
Environment 4) Organizing
5) Future
Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

Training

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 Environment
 Past

 Industrial Revolution

 After WWI the need for mass distribution became evident

 1950s and the marketing concept

Sales Environment
 Present

 Relational Approach

 Current Jobs in Sales

 Opportunities in Sales Management

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)

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

(Source: Hite and Johnston)

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)
Sales Environment
 Future
 What does the sales organization of the future look like?
 Sales Management
1) Automation
2) Forecasting
Overview
Sales 3) Financial Planning
Environment 4) Quotas
5) Time and Territory
Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

Training

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.
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

 Hardware
 Type of computers, printers, copiers, phones, etc.

 Software
 What type software does the sales force need?
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
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
(Source: Hite and Johnston)
Planning
 Quotas
 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
 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

Overview
Sales 1) Recruiting
Environment
2) Selecting

Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

Training

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.
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
 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

(Source: Hite and

Johnston)
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

(Source: Hite and

Johnston)
 Sales Management

Overview
Sales
Environment

Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

2) Developing Training 1) New sales force

current sales training
force
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.
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
 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

 Everything changes over time so constant training is needed

 When can advanced training techniques be used?

 Sales Management

Overview
Sales
Environment

Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

1) Motivating
2) Compensating Training
3) Indirect Incentives

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.
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
 Recognition

 Awards

 Special communications

(Source: Hite and

Johnston)
Motivating
 Compensating (L23)
 Salary

 Commission

 Bonus

 Combinations

(Source: Hite and

Johnston)
Motivating
 Indirect Incentives

 Expenses allowances

 Sales contests
 Themes
 Prizes
 Advantages
 Disadvantages

(Source: Hite and

Johnston)
 Sales Management

1) Leadership Overview
Sales
2) Supervision Environment
3) Evaluating
Supervising Planning
Personal
Sales Sales Reps
Managers
Motivating
Recruiting

Training

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.
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)
Supervising
 Evaluating (L26)

 Analysis of sales volume

 Marketing cost analysis
 Sales Management
1)Types of Sales People
2) Selling Environments
Overview
Sales
Environment
Personal
Sales Sales Reps
Supervising Planning
Managers

Motivating 3) Prospecting
Recruiting 4) Preapproach
5) Approach
6) Presentation
7) Objections
Training 8) Closing
9) Follow up

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.
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

(Source: Hoffman et al)

The Sales Process
Prospecting/ Qualifying (L5)

Preapproach/ Planning (L6)

Identifying Needs

Identifying Needs
Approach (L7)

Presentation (L7)

Handling Objections (L8)

Closing the Sale (L8)

Follow up
 Types of Communication
Marketing

Product Promotion Place Price

Personal Selling Public Relations Sales Promotion Direct Marketing

Advertising
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 a consistent and complete message

(Source: Hoffman et al)