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What is Sales Management?
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Objectives
Provide an introduction to sales management
Who does a sales manager manage?
Where does sales management fit into the integrated marketing
communication process
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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.
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Sales Management
PersonalSales
Representatives
Sales
Managers
CustomerFirm
Value
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Sales Management
CustomerPersonal
Sales
Representatives
Sales
ManagersFirm
Value
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Sales Management
What are the sales managers goals?
Sales
Revenues
Profits
Market Share
Controlling internal costs
Personal
Sales
Representatives
Sales
Managers
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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
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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
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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.
1) Past Present2) Sales Environment
3) International
4) Organizing
5) Future
OverviewSales
Environment
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Sales Environment
Past (L9)
Industrial Revolution
After WWI the need for mass distribution became evident
1950s and the marketing concept
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Sales Environment
Present (L9)
Relational Approach
Current Jobs in Sales
Opportunities in Sales Management
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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)
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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
(Source: Hite and Johnston)
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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
(Source: Hite and Johnston)
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Sales Environment
Future (L27)
What does the sales organization of the future look like?
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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, 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
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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)
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Planning
Automating the Sales Force (L13)
Hardware
Type of computers, printers, copiers, phones, etc.
Software
What type software does the sales force need?
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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
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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
(Source: Hite and Johnston)
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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)
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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)
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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.
1) Recruiting
2) Selecting
OverviewSales
Environment
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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)
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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
(Source: Hite and Johnston)
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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
(Source: Hite and Johnston)
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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.
1) New sales forcetraining
2) Developingcurrent salesforce
OverviewSales
Environment
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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)
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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)
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Training
Developing (L21)
Everything changes over time so constant training is needed
When can advanced training techniques be used?
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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,and providing the proper planning and backup support so they can perform their
jobs properly.
1) Motivating
2) Compensating3) Indirect Incentives
OverviewSales
Environment
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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)
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Motivating
Motivating (L22)
Recognition
Awards
Special communications
(Source: Hite and Johnston)
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Motivating
Compensating (L23)
Salary
Commission
Bonus
Combinations
(Source: Hite and Johnston)
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Motivating
Indirect Incentives (L24)
Expenses allowances
Sales contests
Themes
Prizes
Advantages
Disadvantages
(Source: Hite and Johnston)
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Supervising
Leadership (L25)
Leadership- the process of getting things done through others
Leadership Styles
Types of leadership
(Source: Hite and Johnston)
Supervision (L25)
Supervision- the actual oversee and directing of the day-to-day activities of
salespeople
(Source: Futrell)
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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 jobs
properly.
1) Leadership2) Supervision3) Evaluating
OverviewSales
Environment
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Supervising
Evaluating (L26)
Analysis of sales volume
Marketing cost analysis
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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
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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)
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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
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Types of Communication
Promotion
Personal Selling AdvertisingPublic Relations
Marketing
Product Place Price
Sales Promotion Direct Marketing
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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
(Source: Hoffman et al)
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