Ch01 - Introduction to Selling and Sales Management

Part IPart I

THE BIG PICTURETHE BIG PICTUREPart IPart I

THE BIG PICTURETHE BIG PICTUREChapter 1:Chapter 1:

Introduction to Selling Introduction to Selling and Sales Managementand Sales Management

Sales ManagementSales Management

““I don’t care how many I don’t care how many degrees you have on the degrees you have on the wall, if you don’t know wall, if you don’t know

how to sell, you’re how to sell, you’re probably going to probably going to

starvestarve.”.”

““I don’t care how many I don’t care how many degrees you have on the degrees you have on the wall, if you don’t know wall, if you don’t know

how to sell, you’re how to sell, you’re probably going to probably going to

starvestarve.”.”

Heavyweight boxer George Forman’s Heavyweight boxer George Forman’s advice to his childrenadvice to his childrenL.A. Times, pg. C2, Tuesday, March 25, 1997

What Creates Satisfied What Creates Satisfied Customers?Customers?

21%

25%

17%

37%

Quality of Productor Service

A Total CustomerSolution

Competenceof the

Salesperson

Competitive Price

Figure 1-1: Positions of Personal Selling and Positions of Personal Selling and Sales Management in the Marketing MixSales Management in the Marketing Mix

PlanningPlanning MotivatingMotivatingBudgetingBudgeting CompensatingCompensatingRecruiting and selectingRecruiting and selecting Designing territoriesDesigning territoriesTrainingTraining Evaluating performanceEvaluating performance

Marketingmix

Products Prices Promotion Distribution

AdvertisingPublic

relationsPersonalselling

Salespromotion

SalesSalesmanagementmanagement

What’s New?What’s New?

Figure 1-2:

Marketplace Changes and Selling Marketplace Changes and Selling ConsequencesConsequences

Selling ProcessRelationship SellingCustomer Relationship ManagementSales TeamsGlobal Account ManagementInside Selling

CustomersFewer SuppliersRising ExpectationsIncreasing Power

CompetitionGlobal CompetitionShorter Production CyclesBlurred Boundaries

Figure 1-3:

Contrasting Transactional andContrasting Transactional andRelationship Selling ModelsRelationship Selling Models

Emphasis onSales skills

Respond toCustomer needs

Provide good products,Price, and services

Narrow thecustomer focus

Differentiate throughProducts

Sales/revenueFocus

Traditional customerrelationships

Emphasis on generalManagement skills

Proactive innovation/opportunityIdentification and offers

Value-based offers/Organizational enablers

Broaden toCustomers’ customer

Differentiate throughPeople

Profit management focus/Share of customer

Trusted business advisorand partner

TRANSACTIONAL RELATIONSHIP

Figure 1-4:

Traditional Buyer-Seller InterfaceTraditional Buyer-Seller Interfaceversus A Team Interfaceversus A Team Interface

Sales PurchasingSalesTeam

CustomerTeam

Supplier Customer Supplier Customer

TRADITIONALBUYER-SELLER

INTERFACE

BUYER-SELLERINTERFACE TEAM

Improving Your Improving Your Chances of SuccessChances of Success

1. Build awareness

2. Get on the short list

3. Demonstrate how your proposal meets company needs

4. Directly address decision maker’s personal needs

5. Be prepared for “buyer remorse”

A Sales Quota Manager:A Sales Quota Manager:Job FocusJob Focus

Maintain direct responsibility for sales results for specific customers.

Manages one or a few larger, long-term or strategic accounts

May have a staff of one or more subordinate sales or support people, but focus on managing the sales team for the sake of achieving customer results

A Sales Force Manager:A Sales Force Manager:Job FocusJob Focus

Spend little or no time directly managing customer accounts.

Focuses on building, refining, and staffing a selling team.

Contact with customers is largely non-selling, but service and salesperson development in purpose.

A Sales Quota Manager’sA Sales Quota Manager’sSkill SetSkill Set

Willingness to Train/Coach

Willingness to Make Joint Sales Calls

Problem-Solving

Making Presentations

Answering Objections

A Sales Force Manager’sA Sales Force Manager’sSkill SetSkill Set

Willingness to Train/Coach

Willingness to Make Joint Sales Calls

Ability to Direct and Control Others

Profit Mentality

Initiative

The Sales Management The Sales Management ActivitiesActivities

Table 1-1:

Sales Manager’s Time AllocationsSales Manager’s Time Allocations

JOB RESPONSIBILITYMANAGER’S

TIME ALLOCATION

Selling

Face-to-face

Telephone selling

Administration

Account service/coordination

Travel/waiting

Internal meeting

29%

(17)

(12)

25

17

15

14

The Sales Management The Sales Management CompetenciesCompetencies

What it takes to be a good

Sales Manager

Figure 1-5: A Model of SalesA Model of SalesManagement CompetenciesManagement Competencies

GlobalPerspectiveCompetency

TechnologyCompetency

TeamBuilding

Competency

CoachingCompetencySales

Management Effectiveness

StrategicAction

Competency

Self-ManagementCompetency

Strategic Action CompetencyStrategic Action CompetencyDimensionsDimensions

Understanding the Industry:

Understands the history and general trends in the industry and their implications for the future

Stays informed of and anticipates the actions of competitors and strategic partners

Identifies attractive market segments and their buying needs

Strategic Action CompetencyStrategic Action CompetencyDimensionsDimensions

Understanding the Organization:

Understands the vision, overall strategy, and goals of the organization

Appreciates the distinctive competencies of the organization with respect to market opportunities and limitations

Understands how to marshal organizational resources to meet the needs of the customers

Strategic Action CompetencyStrategic Action CompetencyDimensionsDimensions

Taking Strategic Actions:

Assigns priorities and making decisions that are consistent with the firm’s mission and strategic goals

Implements specific account selection, retention, and dominance strategies

Develops an appropriate portfolio of account relationships

Considers the long-term implications of actions in order to sustain and further develop the organization

Establishes tactical and operational goals that facilitate the firm’s strategy implementation

Coaching CompetencyCoaching CompetencyDimensionsDimensions

Providing Verbal Feedback:

Provides specific and continuous performance and selling skills feedback

Builds a feeling of appreciation and recognition by taking the time to acknowledge a job sell done, and effort beyond the call of duty or an important victory

Reinforces successes and nice-tries to support desirable behaviors

Coaching CompetencyCoaching CompetencyDimensionsDimensions

Role Modeling:

Leads by example, rather than decree

Provides role models, either themselves or others, and sharing best practices

Models professional attitudes and behaviors

Coaching CompetencyCoaching CompetencyDimensionsDimensions

Trust Building:

Maintains good rapport with the sales team and fosters open communications, collaboration, creativity, initiative, and appropriate risk taking

Adds value through communicating relevant selling experiences

Helps salespeople to “look good” through two-way communications

Teambuilding CompetencyTeambuilding CompetencyDimensionsDimensions

Designing Teams: Implements an organizational architecture that

will support teams

Creates a reward system that is fair within the context of a team effort

Coordinates team goals with the overall goals of the organization

Coordinates team activities with the requirements of functional areas within the organization

Teambuilding CompetencyTeambuilding CompetencyDimensionsDimensions

Creating a Supportive Environment:

Hires people that will be successful in a team environment

Trains programs that encourage teamwork

Integrates the individual members of the sales team together to form a functioning supportive team

Teambuilding CompetencyTeambuilding CompetencyDimensionsDimensions

Managing Team Dynamics:

Understands the strengths and weakness of team members and using their strengths to accomplish tasks as a team

Facilitates cooperative behavior and keeps the team moving towards its goals

Self-Management Self-Management CompetencyCompetencyDimensionsDimensionsFostering Integrity and Ethical Conduct:

Has clear personal standards that serve as a foundation for a sense of integrity and ethical conduct by the sales team

Projects self-assurance and does not just tell people what they want to hear

Willing to admit mistakes and accepts responsibility for own actions

Self-Management Self-Management CompetencyCompetencyDimensionsDimensionsManaging and Balancing Personal Drive: Seeks responsibility, works hard and is willing to

take risks

Shows perseverance in the face of obstacles and bounces back from failure

Ambitious and motivated to achieve objectives, but does not put personal ambition ahead of the organization’s goals

Understands that goals are achieved through the success and development of the salespeople

Self-Management Self-Management CompetencyCompetencyDimensionsDimensions

Has clear personal and career goals and knows own values, feelings and areas of strengths and weaknesses

Analyzes and learns from work and life experiences

Willing to continually unlearn and relearn as changing situations call for new skills and perspectives

Developing Self-Awareness and Management Skills:

Global Perspective Global Perspective CompetencyCompetencyDimensionsDimensionsCultural Knowledge and Sensitivity: Stays informed of political, social, and economic

trends and events around the world

Recognizes the impact of global events on the market and the organization

Sensitivity to cultural cues and ability to adapt quickly in novel situations

Travels regularly and has a basic business vocabulary in languages relevant to the position

Global Perspective Global Perspective CompetencyCompetencyDimensionsDimensionsAdapting Global Selling Program: Adopts an appropriate sales force architecture for

global accounts

Appropriately adjusts sales force measurement, competency creation and motivation systems to the local culture

Appropriately adjusts own behavior when interacting and managing people from various national, ethnic and cultural backgrounds

Technology CompetencyTechnology CompetencyDimensionsDimensions

Understanding of New Technology:

Awareness of the potential for technology to increase sales force efficiency and effectiveness

Experience in using new technology

Attitude toward adopting new technology

Technology CompetencyTechnology CompetencyDimensionsDimensions

Implementing Sales Force Automation:

Knows what is to be accomplished and the benefits that are possible

Adapts personal management style and procedures

Fosters sales force acceptance and use of selling technology

How do you get to the top?How do you get to the top?

EXECUTIVE MANAGEMENTFUNCTION MANAGEMENT – GENERAL MANAGEMENT

DIRECTOR

ASSOCIATE DIRECTOR

MANAGER

Human Resources

CustomerBusiness

Development

Sector/Multi-Sector

Sales

Human Resources

CustomerBusiness

Development

Sector/Multi-SectorBus. Devel

SectorSales

Merchandising

Geographic or Team

Account Exec

Other Field orGeneral Office

Roles

OperationsManager

ACCOUNT MANAGERGeographic

or TeamAccount Exec

Other Field orGeneral Office

Roles

OperationsManager

WORLDWIDEASSIGNMENTS

• Canada

• LatinAmerica

• Asia/Pacific

• Europe

• Middle East& Africa

• U.S.

Figure 1-6:

Career Paths at Procter and GambleCareer Paths at Procter and Gamble

OTHERFUNCTIONS

• Advertising

• Product Supply

• Management System

• Human Resources

• Finance

• Other