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Managing sales
There will always be need forsome selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understandthe customer so well that the product orservice fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.
Peter Drucker
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The Four PComponents of
the MarketingMix
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From Dr. Mohan Sawhneys presentation Mohan Sawhney and AMA definition of marketing
Many business are wisely turning their supplierMany business are wisely turning their supplier
and distributors into valued partnersand distributors into valued partners
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Marketing is the process of planning and executing
the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges
that satisfy individual and organizational goals.
- American Marketing Association
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The Generic Value Chain
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Overview of Sales Management The role, responsibility and duties of sales manager
Position titles and responsibilities of sales manager at
different level Why and how to integrate sales and marketing
management
How well sales managers are performing in their jobs Why sales managers are not doing a better job
Why the concept of sales managers job is expanding
Why sales manager need top-management support
What mega trends are impacting on sales management
How to develop people to handle the increasinglyeclectic job of sales manager
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American Marketing association agreesthat Sales Management means
The planning, direction, and control of
personal selling, including recruiting,selecting, equipping, assigning, routing,supervising, paying, and motivating.
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What is a sales manager A sales manager is many thing to many people
Teacher, trainer, and a coach Recruiter, an employer and a counselor
Leader, follower and implementer
Communicator and catalyst, Planner, organizer and a prognosticator
Conductor, archestrator, and a skillful manipulator
A teammate a referee and an umpire Advisor, supervisor and a friend
Developer supporter and some time executioner
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What is a sales manager Psychologist, an analyst and strategist
A Delegator a motivator, and an evaluator An instigator, an innovator and a creator of new ideas
A sales manager is many thing to many people
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Responsibilities of sales manager
Sales managers are paid to
plan,
lead
and controlthe personal selling activity
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Responsibilities of sales manager Prepare sales plan and budget
Set sales force goals and objectives Estimate demand and forecast sales
Determine the size and structure of the sales force organization
Recruit, select and train people
Design sales territories, set sales quota, and define performancestandards
Compensate, motivate and lead the sales force
Conduct sales volume, cost , and profit analysis
Evaluate sales force performance And monitor the ethical and social conduct of the sales force
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Prepare sales plan and budget
Plans are prepared at each hierarchical level
Concerned with yearly and quarterly goalsSales goal:
Sales force broad, long run direction and general
purposeSales Objective:
Make explicit what specific results are to be achievedwithin a specified time period
like sales volume, contribution to profits, and continuingthe growth.
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Estimate demand and forecast sales
Sales forecast supports all other company
decisions Forecasting errors can be disastrous
Estimate market Potential and salespotential
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Estimate demand and forecast sales
e.g.: GM forecast of gasoline $3.60 by 1987, product mix
emphasized compact and subcompact cars instead oflarger ones.
but during that period it was only 65 cents/ gallon
which resulted into financing rated of 2.9% and rebatesup to $1500.
American motor one upped with 0% interest rate.
e.g.: Sports Obermeyer Guess forecasting error ?????
Campbell soups Guess forecasting error ?????
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Determining size and structure ofthe sales organization
Number of sales people and the way they
are organized affect several salesmanagement decision
It depends on geographical locations,product type, or even customer type.
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Recruiting, selecting and training people
Attracting right and qualified people for the job
Identifying sources of potential sales recruits, methods ofreaching them and strategies for attracting them to applyfor sales job
Traditionally Training and retraining of sales people have
focused mainly on sales techniques, but progressivefirms are blending sales and marketing concepts withsales training
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Setting sales quota, and define performance
standards
Define sales territory (market segment or group
of present and potential customers, who sharesome common characteristics relevant topurchasing behavior)
It in turn decides sales quota( team as well asindividual)
Scheduling and routing for calling and meetings
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Compensating, motivating and leading the
Sales force
Financial and non-financial incentives
Salary and commissions, vs. company car, secretarialhelp, insurance, retirement plan , health care
Sales manager must realize that most employees seekfulfillment beyond working conditions and financial
rewards
Leadership goes far beyond administrative andsupervisory functions
Inspire, make work more meaningful, and help them toachieve more than they ever thought they could
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What Motivates Sales Reps?Most Rewarding
Pay Promotion
Personal growth
Sense ofaccomplishment
Least Rewarding
Liking Respect
Security
Recognition
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Analyze sales volume, cost , and profit
Analyze sales volume, cost , and profit relationship
across product lines Across territories,
across customers,
Across sales persons
As well as across sales and marketing functions
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Measuring and evaluating sales
force performance
To make commission and bonus decisions
To make promotion decisions
How to do that
Salesperson-to-salesperson comparison Current to past performance decision
Actual-to-expected performancecomparisons
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Monitoring the marketing
environment
Patterns of business and industry
Proactive and reactive approach
Myopic vs. visionary
Sales force is organizations eyes and ears Design an early warning system
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Integrating sales and marketing
management
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Integrating sales and marketing
management
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Integrating sales and marketing
management
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Integrating sales and marketing
management
Marketing Mix and the Customer
Four Ps Product
Price
Place
Promotion
Four Cs Customer solution
Customer cost
Convenience
Communication
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Integrating sales and marketing
management
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How are sales manager performing
They dont teach us problem solving skills
They have too many sales people to manage
The paperwork is killing me
Their territories are too large to manage
They never discuss long term goals
When we are doing well, please communicate with us! Dont wait tillperformance slips
Please ask us once in a while, how you are performing
Their management style often becomes a hodgepodge of directives
mixed with intimidation and persuasion
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How are sales manager performing
A survey of 1000 industrial buyer revealed as follows:
89% said the salespeople did not know their
products 88% said the salespeople did not demonstrate
the products they are selling
85% said the sales people lacked empathy 82 % said they would not buy from the same
salespeople or companies again
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How are sales manager performingA survey of 257 fortune 500 companies revealed as follows:
83% do not determine an approximate duration for each sales call
77% do not use computer in territory and time management
72% do not set profit objectives for accounts
63% do not use prescribed routing patterns in covering territories
54% do not conduct organized studies of their sales representatives use oftime
51% do not determine the number of calls it is economical to make on anaccount
51% do not use a planned presentation
30% do not use call schedules for their sales forces
25% do not have system for classifying customers according to potential 24% do not set sales objectives for customer accounts
19% do not use a call report system
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Why arent sales manager doing a better job
Poor selection criteria for promotion to salesmanagement (as skills needed changes from selling tosupervisory, to managerial, to administrative and toleadership) (doing vs. managing)
Inadequate sales management training programs
Lack of marketing orientation in handling salesoperations
Insufficient blending of sales and marketing activities
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HOW SALESPEOPLE SPEND
AVERAGE 46-HOUR WORKWEEK
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Mega trends
affecting sales management Intense foreign competition
Rising customer expectations Increasing buyer expertise Revolutionary developments in computer
technology and communication
Influx of women and minorities into sales careers Growing emphasis on controlling costs Scope of competitive selling environment
Necessary skills to sell intangibles Adjustment to information age
