lesson 1what is sales management
TRANSCRIPT
8/2/2019 Lesson 1What 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 theintegrated marketing communication process?
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The Sales Force
Sales Management- is the attainment of sales forcegoals in an effective and efficient manner throughplanning, 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, andproviding the proper planning and backup supportso they can perform their jobs properly.
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Sales v/s Marketing
1Emphasis-Product Consumer needs
2Make then sell Need/Want then Make
3Driven by Sales Volume Consumer Satisfaction 4Planning Short term Long Term
5Stresses need of Seller Need of Buyer
6Cost determine Price Consumer determinePrice
7Reduce Cost Better value to consumer
8Consumer -last link First link
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Sales Management
Firm
Sales
Managers
PersonalSales
RepresentativesCustomer
Value
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Sales Management
What are the sales managers goals?
Sales
Revenues
Profits
Market Share
Controlling internal costs
Sales
Manager
PersonalSales
Representative
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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
Sales
Manager
PersonalSales
Representative
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Sales Management
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 theirjobs properly.
SalesManager
PersonalSalesRep
Overview
SalesEnvironment
Motivating
Recruiting
Training
Supervising
Planning
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Sales Management
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 theirjobs properly.
SalesManager
PersonalSalesRep
Overview
Sales
Environment
Motivating
Recruiting
Training
Supervising
Planning
1) Past Present
2) Sales Environment3) International
4) Organizing
5) Future
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Sales Environment
Past
o
Industrial Revolutiono After WWI the need for mass distribution became
evident
o 1950s and the marketing concept
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Sales Environment
Present
o Relational Approacho Current Jobs in Sales
o Opportunities in Sales Management
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Sales Environment
Organizing the Sales Force And designing
Organization Structure
o Organizing- the assignment of tasks, the grouping
of task into departments, and the allocation of
resources to departments
o Structure of the sales managers jobo Chain of command
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Sales Environment
Legal Issues
o Consumer protection laws
o Antitrust laws
o Unfair trade practices
o Fraud and misrepresentationo Uniform Commercial Code
o Direct-to-consumer sales
o Antidiscrimination law
Ethical Issues
o Creating ethical corporate structures
o Relationships with customers
o Relationships with competitors
o Relationships with the firm
o Relationships with society
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Sales Environment
International
o Ethnic composition
o Religious orientation
o
Social class environmento Education
o Gender bias
o Differences in negotiating styles
o Differences in decision making
o Job status and company protocol
o Social aspects
o Perceptions of time
o Personal relationship
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Sales Environment
Future
o What does the sales organization of the future look
like?
o CSO, Contract Sales Organization
o Dynamics of Sales Environment is changing
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Sales Management
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 theirjobs properly.
SalesManager
PersonalSalesRep
Overview
SalesEnvironment
Motivatin
g
Recruiting
Training
Supervisin
g
Planning
1) Automation
2) Forecasting3) Financial Planning
4) Quotas
5)Time and Territory
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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 ofresources needed to attain them
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Planning
Sales Forecasting/Demand Forecasting
How do we forecast sales?
o Qualitative and Quantitative
o Sales force composite
o Jury of executive opiniono Survey of buyer intentions
o Delphi Technique
o Historical Analogy
o Test Marketing
o Trend projections
o Moving averages
o Exponential smoothing
o Regression
o 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
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Planning
Quotas(Targets)
Sales quota- the specific sales or profit objectivea salesperson is expected to achieve
Sales assignment or goals , which are to beachieved in specific time
Self Supervisory method of measuring yourperformance
SBO selling by objective
On the basis of Margin , Selling effort and Producttype
Type of Quotas are -Rupee sales ,Unit Volume,Expense quotas, Profit quotas ,Activity quotas
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Planning
Sales Territory Management
Sales Territory-
It is a group of prospects assigned to a sales person, saleteam , distributor,dealer or a marketing organization at a given period of time .Designing ismostly done on the basis of geography
Advantages-
Ensures better market coverage , effective utilization of sale force ,efficientdistribution of workload, convinient way to evaluate performance, bettercontrol over cost, monitor sales quota
Objective-Optimum time must be spent with those prospects with thegreatest 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
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Planning
Automating the Sales Force
A Sales Force Automation System (SFA ), typically a part of acompany·s CRM, customer relationship management system,is a system that automatically records all the stages in a
sales process. SFA includes a CMS contact management system, which
tracks all contact that has been made with a given customer,the purpose of the contact, and any follow up that might berequired. This ensures that sales efforts are not duplicated,
reducing the risk of irritating customers Hardware and Software Support
o Type of computers, printers, copiers, phones, etc.What typesoftware does the sales force need?
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Sales Management
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 theirjobs properly.
SalesManager
PersonalSalesRep
Overview
SalesEnvironment
Motivating
Recruiting
Training
Supervising
1) Recruiting
2) Selecting
Planning
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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
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Recruiting
Recruiting
Planning as per Strategic position , Turnover , Job analysis , Job qualificationand profile ,Number of persons,
Objective-The sales manager should recruit individuals whose values and goalsmatch those of the firm
Where do you find sales recruits?
Internal departments (lateral or vertical) ,
Recommendations ,
Institutions ,
Professional associations ,
Armed Forces ,Classifieds , Employment agencies ,
Walk-ins
,Networking,
Web sources
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Recruiting
Selecting
What is the firm looking for?
o People that can sell successfully
o Remain with the company over a long period oftime
Problems
o
Legal and ethical restrictionso Firm must maintain a good image
o Must have a valid job description
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Sales Management
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 theirjobs properly.
SalesManager
PersonalSalesRep
Overview
SalesEnvironment
Motivating
Recruiting
Training
Supervising
1)New sales force training
2) Developing current salesforce
Planning
Recruiting
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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
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Training
What is needed for a training program to work?
o Provide a job description
o Provide product knowledge
o Provide company knowledge
o Provide market knowledge
o Selling techniques
Why train ?
o To Decrease turnover of employees
o Increase saleso Enhance customer relationships
o Decrease costs
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Training
Developing
o Everything changes over time so constant training is
needed
o When can advanced training techniques be used?
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Sales Management
Managing a sales force involves recruiting, hiring, training, supervising, compensatingsalespeople, motivating them to become problem solvers, andproviding the proper planning and backup support so they can perform their jobsproperly.
SalesManager
PersonalSalesRep
Overview
SalesEnvironment
Motivating
RecruitingSupervising
1) Leadership
2) Supervision3) Evaluating
Planning
Recruiting
Training
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Supervising
Leadership
Leadership- the process of getting things done
through others
Leadership Styles
Types of leadership
Supervision
Supervision- the actual oversee and directing of theday-to-day activities of salespeople
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Supervising
Evaluating
o Analysis of sales volume
o Marketing cost analysis
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Sales Management
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 theirjobs properly.
SalesManager
Personal
SalesRep
Overview
SalesEnvironment
Motivating
Recruiting
1) Motivating
2) Compensating
3) Indirect Incentives
Planning
Recruiting
Training
Supervising
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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.
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Motivating
Motivating
Recognition
Awards
Special communications
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Motivating
Compensating
o Salary
o Commission
o Bonus
o Combinations
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Motivating
Indirect Incentives
Expenses allowances
Sales contests
o Themes
o Prizes
o Advantages
o Disadvantage
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Sales Management
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 theirjobs properly.
SalesManager
PersonalSales Rep
Overview
SalesEnvironment
Recruiting5) Approach
6) Presentation
7) Objections
8) Closing9) Follow up
Planning
Recruiting
Training
Supervising
Motivating
1)Types of SalesPeople
2) Selling Environment3) Prospecting
4) Preapproach
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Definition
Personal Selling
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 ormore prospective customer
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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