chapter 01 sales management its nature, rewards, and responsibilities
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Copyright © 2001 by Harcourt, Inc. All rights reserved.
CHAPTER 1
SALES MANAGEMENT:
ITS NATURE, REWARDS, AND
RESPONSIBILITIES
Copyright © 2001 by Harcourt, Inc. All rights reserved.
WHAT IS SALES MANAGEMENT?
Sales management is the attainment of sales force goals in an effective and efficient manner through:
• Planning
• Staffing
• Training
• Leading
• Controlling organizational resources
Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions
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PLANNING
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.
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FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions
Copyright © 2001 by Harcourt, Inc. All rights reserved.
STAFFING
Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.
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FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions
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SALES TRAINING
The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.
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FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions
Copyright © 2001 by Harcourt, Inc. All rights reserved.
LEADING
The ability to influence other people toward the attainment of objectives.
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FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions
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CONTROLLING
Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary.
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FIGURE 1.1 THE SALES MANAGEMENT PROCESS
Sales Management Functions
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Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.*
* Instructor added word ethical.
SALES PERFORMANCE
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FIGURE 1.2 THE SYSTEMS VIEW OF AN ORGANIZATION
EXTERNAL ENVIRONMENT
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Organization is a social system that is goal directed and has a deliberated structure.
Social means being made up of two or more people.
Deliberated structure means the tasks are divided, and the responsibility for their performance is assigned to organization members.
Goal directed means an organization is designed to achieve some outcome.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
Organizational effectiveness is the degree to which the organization achieves a stated objective.
Organizational efficiency refers to the amount of resources used to achieve an organizational goal.
MAJOR PARTS OF AN
ORGANIZATIONAL SYSTEM
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T o p Sales L ead ers (Strategic)
F irst- L ine Sales L ead ers (O p eratio nal)
M id d le Sales L ead ers (T actical)
FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY
Regional Sales Leader
CEO
President
Vice President of Marketing
National Sales Leader
Zone Sales Leader
District Sales Leader
Sales Trainee Salesperson Key Account
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P lann in g35%
Staff ing10%
T rain -in g5 %
L ead in g30%
C o ntro llin g20%
P lann in g28%
T rain in g10%
L ead in g30%
C o ntro llin g22%
Staff ing10%
P lann in g15%
T rain in g25%
L ead in g25%
C o ntro lling15%
Staff ing20%
FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIES BY ORGANIZATIONAL LEVEL
Top Managers
Middle Managers
First-Line Managers
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SALES MANAGEMENT SKILLS
1. CONCEPTUAL AND DECISION SKILLS
Refer to the cognitive ability to see the organization as a whole and the relationships among its parts.
2. PEOPLE SKILLS
Involve the ability to work with and through other people and to work effectively as a group member.
3. TECHNICAL SKILLS
The ability to perform a specialized task that involves a certain method or process.
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PROMOTION FROM SALESPERSON TO SALES MANAGER
Changes that occur when a person becomes a new manager:
1. Perspectives change
2. Goals change
3. Responsibilities change
4. Satisfaction changes
5. Job skill requirements change
6. Relationships change
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FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICAL SKILLS TO SALES LEADER LEVEL
T o p Sales L ead ers
M id d le Sales L ead ers
F irst- L in e Sales L ead ers
N o n m an agerial Salesp eo p le
C o n cep tu al an d D ecisio n Sk ills
P eo p le Sk ills T ech n ical Sk ills
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PROBLEMS NEW MANAGERS EXPERIENCE
• Lack of preparation for the job.
• Expected to step into the job and immediately function effectively.
• Often lacks an immediate peer group.
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MAKING A SUCCESSFUL TRANSITION TO MANAGEMENT
• Have a learning attitude – a willingness to learn, change,
adapt, and seek help when needed.
• Having realistic expectations.
• Leave the old job behind.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
THE BOTTOM LINE
Skilled sales managers are the key to a successful organization.
Sales managers have five functions that, when combined, can allow them to achieve the goals desired by higher levels of management.
The various types of sales managers can be broken down into the categories of vertical and horizontal.
Most corporations hire a person who cannot only sell but who also shows the potential to one day become a sales manager.
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