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What is Sales Management?
Introduction to Personal SellingPrepared by: Prof Sameer Kulkarni.
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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, and
providing the properplanning and backup support so they can perform their jobs
properly.
Overview
Sales
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, and
providing the proper planning and backup support so they can perform their jobs
properly.
1) Past Present2) Sales Environment
3) International
4) Organizing
5) Future
Overview
Sales
Environment
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Sales Environment
Past
Industrial Revolution
After WWI the need for mass distribution became evident
1950s and the marketing concept
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Sales Environment
Present
Relational Approach
Current Jobs in Sales
Opportunities in Sales Management
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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)
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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)
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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)
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Sales Environment
Future
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
Overview
Sales
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
Hardware
Type of computers, printers, copiers, phones, etc.
Software
What type software does the sales force need?
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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
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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)
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Planning
Quotas
Sales quota- the specific sales or profit objective a salesperson is expected toachieve
(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
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 salespeoples work loads
How many salespeople will the territory support
Territorys 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, and
providing the proper planning and backup support so they can perform their jobs
properly.
1) Recruiting
2) Selecting
Overview
Sales
Environment
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Recruiting
Recruitment- set of activities and processes used to legally obtain a
sufficient number of individuals that takes the peoples and the sales
forces best interests into consideration
(Source: Futrell)
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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)
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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)
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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) New sales forcetraining
2) Developingcurrent sales
force
Overview
Sales
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
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
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
Overview
Sales
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 salespersons 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
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
Expenses allowances
Sales contests
Themes
Prizes
Advantages
Disadvantages
(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, and
providing the proper planning and backup support so they can perform their jobs
properly.
1) Leadership
2) Supervision
3) Evaluating
Overview
Sales
Environment
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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)
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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, and
providing 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
Overview
Sales
Environment
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Definition
Personal Selling (L4)
Personal Selling- is direct oral communication designed to explain
how an individuals or firms 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
Identifying
Need
s
Identifying
Need
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
Integrated marketing communications- the intentional coordination
of every communication from a firm to a target customer to convey aconsistent and complete message
(Source: Hoffman et al)
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