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SALES MANAGEMENT MGT607

TOPIC 1 INTRODUCTION TO SELLING AND SALES MANAGEMENT

Aim: be able to understand the sales management function, activities and competencies. Objectives: 1.1 Define sales management and its relation to other marketing activities. 1.2 Describe the changes in personal sales and sales management. 1.3 Describe the sales management process. 1.4 Discuss the competencies of successful sales managers.

1.1 Define sales mgt & its relation to other mkting activities.
Sales Management Systematic process involving: (1) formulation of sales strategy through development of account management policies, sales force compensation policies, sales revenue forecasts, and sales plan, (2) implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets, and (3) sales force management through development and implementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs.

Sales Management the process of planning, organizing, controlling and evaluating the activities of the sales force.
The planning, direction, and control of the personal selling activities of a business unit, including recruiting, selecting, training, equipping, assigning, routing, supervising, paying, ...

Definition of Marketing

Marketing is a a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. The marketing management is an analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Marketing concept holds that achieving organizational goals depends on identifying the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors do.

Marketing does not occur in a vacuum. The marketing environment consists of external forces that directly and/or indirectly impact the organization. Changes in the environment create opportunities and threats for the organizations. To track these external forces a company uses environmental scanning. Continual monitoring of what is going on. Environmental scanning collects information about external forces. It is conducted through the Marketing Information System. Environmental analysis determines environmental changes and predicts future changes in the environment. The marketing manager should be able to determine possible threats and opportunities from the changing environment. This will help avoid crisis management.

Six Environmental Forces


Societal Regulatory

Political Legal Regulatory

Economic Competitive Technology Natural

1.2 Describe the changes in personal sales & sales mgt.


The Evolution of Selling The world of sales continues to change and the strategies that created success in the past are failing to generate success in the new world order. What a salesperson's job is and the salesperson's role in the organization depends to a large extent on the company's basic business orientation (philosophy).

A company's business orientation drives what it does and what it is trying to accomplish to be successful. Although, all types of orientation can be found in today's market place, different orientations have tended to be more dominate at different points in time. A. The Product Era. Marketing is distribution. The salesperson's job is to take orders and get products to customers. B. The Sales Era. Marketing is aggressive selling. The salesperson's job is to find customers and aggressively convince them to buy.

C. The Marketing Era. Marketing is satisfying customer needs. The salesperson's job in a problem solver. Discover the customer's need and match product to need. Relationship Era. Marketing is building long-term relationships. The salesperson's job is to partner with customers.

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The Role of Personal Selling in Business


A. Boundary Spanner. The salesperson has a boundary spanning role in the organization. This means that the salesperson is the contact-point between the marketing organization and the customer. Obviously, this is a very important role in business. This role is what makes sales interesting and exciting, it is where the action is. However, the boundary spanning position can also present many challenges to the salesperson. A common problem is "role conflict," which occurs when the company and customer have different expectations and therefore, put conflicting demands on the salesperson. Salespeople have to be able to wear two hats at once, representing the company to the customer and the customer to the company.

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B. Communicator. Personal selling is part of the traditional promotional mix.

It fact is has a number of advantages over other communication tools available, including: 1. Persuasiveness 2. Two-way communication (feedback) 3. Highly Adaptive and 4. Highly Selective. It biggest drawback is the fact that it is very expensive (in business-to-business selling it averages around $300 per sales call). Salespeople have to be effective 2-way communicators, getting information to customers and also delivering information from the customer to the company. Many salespeople would tell you that effective listening is more important to sales success than effective speaking.

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C. Mini-marketing Manager. Particularly in business-tobusiness marketing, salespeople act as mini-marketing managers. They are assigned a territory for which they are responsible (in a sense the territory is a profit center). The salesperson regularly makes 4-p's decisions about that territory.
D. Relationship Builder. Relationship marketing is one of the hottest buzzwords in business. In organizations that use salespeople, it is the salesperson to initiates and maintains the relationship with the customer. This involves not only a business relationship but in many cases a personal relationship between the salesperson and the buyer. For a significant number of customers, the relationship between the customer and salesperson is stronger than the relationship with the marketing organization.

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Types of Sales Jobs It is difficult to generalize about the nature of sales jobs because there is a tremendous variety of different jobs involving different activities. Major Categories of Sales Jobs A. Industrial (B-to-B) versus Consumer. Sales Jobs vary because of the nature of the buyer and the product being sold. The basic differences between industrial and consumer marketing comes into play. B. Order Takers versus Order Getters. It also makes a difference in terms of what responsibilities the salesperson has. How much of the sales process is handled by the SP? At one extreme are order-takers, who do little selling e.g., route salespeople that fill out customer orders on site and make deliveries and some retail salespeople who simply process customers orders. At the other extreme are SP who have to go out and find potential customer and then turn them into customers. C. Inside versus Outside Sales. Where does the sales process take place? Does the customer come to you or do you go out to customer? D. Transaction versus Relationship. Is there a relationship? Does this customer have a history and a future with your company? In many b-to-b situations you are assigned a group of customers who have a long relationship with your company, your job is a relationship manager.

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Trends in Sales Management


1. Transactions to Relationships 2. Individual to Teams 3. Volume to Productivity 4. Management to Leadership 5. Local to Global 6. Technology

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Where Sales Come From


Generic Growth (growth over a period of time) Penetration Product Development Market Development Diversification

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Business Orientation

Product Orientation Sales Orientation Marketing Orientation Relationship Orientation

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Decisions
A. Goals and Objectives B. How to access customers Direct Sales Force Agents, Dealers Other Direct

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Account Relationship Strategies


1. Transactional 2. Contractual 3. Major Accounts 4. Strategic Partners

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Organizing the Selling Effort


geographic, product, customer

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Demand Estimation
Forecasting and Potential 1. Relationship to Sales Planning 2. Issues

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D. Sales Territories
Need for, Size, Design, Coverage E. Sales Quotas

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Implementation
A. Recruiting and Selecting B. Training C. Motivation/Leadership D. Compensation and Incentives

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Control-Evaluation
A. Sales Analysis B. Cost Analysis C. Behavior Analysis

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1.3: Sales Management Process

Focusing on the Big Picture a firms mgt process is affected by business strategy & its strategy for accessing its target market. Roles of the sales force strategy must be implemented by sales force (calling on customers, prospecting, managing customer relationships and creating value for customer)
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Structuring the sales force must be well organized. Structure decision influence how customers see the firm & will affect selling skills & knowledge of sales force. This will impact sales mgt activities (compensation, recruitment, training, evaluation). Building sales competencies sales mgrs are responsible for hiring salespeople with right skills & backgrounds to implement sales strategy. Training should be provided.

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Leading the sales force effective sales mgrs know how to supervise & lead their salespeople. They provide leadership by inspiring people to grow & develop professionally at the same time achieving company goals.

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T1.4: Competencies of successful sales managers


Strategic action Competency
Technology competency Coaching competency

Sales Mgt Effectiveness


Global perspective competency Strategic action Competency

Team building competency

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Strategic Action Competency Understanding the overall strategy & goals of the company & ensuring your actions are in line (must know industry, org, strategic actions) Coaching Competency Providing ongoing feedback (role modeling, building trust, verbal feedback) Team Building Competency Through small groups (design teams, supportive environment, team dynamicsstrengths /weakness)

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Self Management Competency Taking responsibility for your actions at work & elsewhere. Includes integrity & ethical conduct, managing personal drive, self awareness & development. Global Perspective Competency Drawing on human, financial, information & material resources from multiple countries and serving customers who come from multiple cultures. Develop cultural knowledge & sensitivity, global selling program.

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Technology Competency Understand new technology, sales force automation, CRM (customer relationship mgt).

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