the field of sales force management -chapter (1) by omar kotta

2015

Management of Sales Force Chapter ( 1 )

Prepared By Omar Kotta

01116911852

Management of sales force

Omar Kotta Page | 1

Chapter 1

The Field of Sales Force Management

Sales management:

The management of the personal selling component of marketing program of the

organization.

It focuses on managing the outside sales force.

Outside sales force: It’s the sales force that calls on prospective customers to make sales.

(bm3na barkez aktr 3ala nas ely momken f3ln tshtry meni el 7aga ely beb3ha , msh ay 7ad

heshry 3ashan kda asmo prospective)

Types of outside sales forces: There are many different types of outside sales forces,

and each one requires a different strategy to be successful.

Business to Business (B2B Sales) Business to customer ( B2C Sales)

Salesperson in B2B sales calls on three distinct types of business customers: manufacturers (Mercedes), intermediaries (wall mart), and institutions (Harvard University)

E.g. firestone selling tires to ford ( msln shrkt IBM shrka kbera fe software system , ht3rd 3ala shrkt vodafon aw vodafon htklmhom 3ashan y3mloha system) (directly ben sl shrkten )

All salespeople sell products that are being purchased for the purpose of consumption, incorporation or resale.

State farm selling auto insurance directly to consumers. El sshrka hya ely bttb3lk montgtha ex ( el sim cards )

Top Five Customer Complaints about Salespeople:


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Note that : to understand the customer's business, the sales manger's role is critical. This

role includes hiring the right people, implementing the proper training program, and then

motivating the salespeople to do the job.

The Nature of Personal Selling

V.imp. fel true & false

1. Personal Selling Vs. Marketing Mix: There’s a relationship between the personal

selling (promotional mix) and the marketing mix, such that:

Personal selling is one of the promotional activities of the promotional mix which is

part of the marketing mix (Product, Price, Promotion & place).

2. Relationship marketing/relationship selling: It’s the process by which a firm

builds and maintains long-term relationships with customers for purpose of

creating mutual competitive advantage.

- To understand the customer needs and to provide them with value added solutions

to their problems, salespeople should develop close and long-term relationships with

the customers by cooperative, trust, commitment and sharing information means.

3. Transaction selling Vs. Relationship Selling

Transaction oriented Relationship oriented

Salespeople focus on the immediate sale

rather than on the relationship with the

customer.

1. Get new accounts

2. Get the order

3. Cut price to get sale

4. Manage all accounts to maximize

short term sales

5. Sell to anyone

(kol hamo eno yb3 3ashan ywsl lel target

bt3o a5r el shr ,w ya72a2 profit , daymn

bel3b 3ala short term w yngz nfso , omal

y2bd azai ? . de way mn el sales b3d nas

btst8lha w ktera fe msr :D ) ( EL 3tba wa7ed

ymsk fek w y2olk 3ndi bntlon lek y basha ,

2oly 3ayz a bs …. Sell to anyone )

Salespeople concentrate their efforts on developing

trust in a few carefully selected accounts over an

extended period of time.

1. Retain existing accounts

2. Become the preferred supplier

3. Price for profit

4. Manage each account for long term profits

5. Concentrate on high profits & potential accounts

( men el asm bel3b 3ala Relationship m3 el customers ,

3ashn y7fz 3la customer bt3o ,walhi el ragl da wsq fya

eny msh blbso el product bt3na fe ama begy yfkr yshtry

hetsl bya , msh hero7 la7d tani 3arf enk bts3do – msh

btst8lo – el salesperson hena be3ml kol customer

btr2to , w 3arf a needs bt3to – tyb el try2 de bts3dny

eny el nas ely b3tlha tgbly nas Tania tsrhty meni aktr ,

w de 2olelya fe msr lel asf .)


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Six Categories of Sales Jobs

1. Consultative sellers: They uses relationship selling techniques to demonstrate how

his company’s products will contribute to the customer’s profit. They are creative,

problem solvers, consultants to their customers. (3arf enta ama bekon feh 7ad

fahem kol 7aga 3n montg ely beb3o w be3rf ys3dk azai tst5dmo homa dol walhi el

nas de consultants fe mglhom law 3ndk moshkla bs3dko t7lha azai , f enta btrg3lo

ama ykon feh 7aga )

2. Key account sellers: They focus on a smaller number of big, important customers,

their goal is to maintain the existing accounts. (msln ana shrkt 3ser w 3ndi customer

kobar homa ely bes3do el shrka fe goz2 kber mn revenues fe ha5sas nas htmsk

accoutns bt3t el shrkat de zai metro markets , walhi el nas de bt5od kamyat kbera

kol shr , tb a7fz 3leh da ? wala mhtmsh beha w a5ly team sales kolo yro7lhom kol

fatra ? )

3. New business seller: This salesperson focuses on prospecting for customers and

generating new accounts. The goal is to earn the trust of prospects, get the initial

order, and turn them into long term customers. They may face rejection on daily

basis ,so they need to be highly motivated .

4. Sales support: They support the actual selling done by the reps in the other

categories, but they are not responsible for selling the product.

Msln ana b3t system lel shrka bb3t engineers mn shrka ys3do el shrka el Tania de

azai yst5domo w y7lo technical problems )

E.g. Support promotional activities and work with customers in training and

educational capacities. And they provide information before the sale or after the sale

to help solving customer problem. (text book )

Some support people who are product specialists – sales engineers- work with

customers to assist with technical problems.

5. Missionary seller: They introduce new lines of products to customers and assist in

promotional activities. E.g. pharmaceutical sales reps are missionary seller (el nas

ely 3ndha background fe 7aga w beb3 fe nafs el w2t medical rep ely b3rd 3la dr

3lag gded mn shrka )

6. Delivery seller: They facilitate sales to customers or to business accounts that have

been already established by taking orders and/or delivering the product.


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Selected activities of sales people

Generate sales Provide service

to customers

Territory

management

Professional

development

Company

service

- Pre-call planning

- Prospecting

- Make sales

presentations

- Overcome

objections

- Close by asking

for the orders

- Arrange for

delivery

- Arrange for

credit / financing

- Collect

payments

- Participate in

trade shows

- Provide

management/

technical

consulting

- Check inventory

levels

- Stock shelves

-Provide

merchandising

assistance:

- Co-op advertising,

point-of-purchase

displays, brochures

- Oversee product

and equipment

testing

Train wholesalers’

and retailers’

salespeople

- Gather and analyze

information on

customers,

competitors’ general

market developments

- Disseminate

information to

appropriate

personnel within

company

- Develop sales

strategies and plans,

forecasts, and

budgets.

Participate in:

- Sales meetings

- Professional

associations

- Training

programs

- Train new

salespeople

- Perform civic

duties

Sales jobs differ from other jobs because salespeople

• They represent their companies to their customer and to society in general. They

have more contact with people outside of their own companies than other types of

employees. ( Enta el image bt3t el shrka ely btmslha bra lel customers w shrkat , w

3la asas image be7kmo 3la shrka , walhi de shrka mo7trma wala la )

• They represent the customer to their companies. they are transmitting information

on consumers' needs and problems back to the organization (walhi w enta btb3

btglk shakwy mn montg aw 5dmtk , fe bt5od notes w bt3rdha 3la shrka 3ndk )


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• Sales jobs frequently require travel and time away from home and family. (meetings

bra el shrka ,3ashan ta5ls deals , fe btsfr kter in order to achieve el target )

• Operate with little or no direct supervision and require a high degree of motivation.

(momken ybqa a5rk fe shrka enk btmdy enk get , fe supervisor bt3k msh bekon

m3k fe kol 7ta , w brdo btkon m7tg sbr gdn w self-motivation 3ashan taqbd :D A5r

el shr )

• They are responsible for spending company money for entertainment,

transportation, and so on. ( sa3at deals btkon 3ayza frafsha w dal3 le zabon 3ashan

tgeb el deal da , msln zai bt3zm customer , gifts …. )

• They are frequently face rejection. They must be able to handle the negative

feelings that come losing the sale . ( walhi enta btsm3 No w shokrn aktr mn ay

7aga tani . Lazem tgeb a5rk w te-create nas tania momken tshtry )

• They also need social intelligence to be able to socialize with their customers and to

be able to handle the difficult buyer. ( enta w shtrtk w el way bt3tk hya el btfr2

gamed m3k fe selling )

• Have large role sets: interact and work with people from a variety of departments.

• Face role conflict, and role stress.

The Nature of Sales Management

A. Responsibilities of sales manager:

Strategic planning

Organizing the sales force

Recruiting, selection and assimilation

Training and development

Motivation and leadership

Performance evaluation

Today, personal selling have much broader dimensions. Such as strategic planning,

forecasting, budgeting, territory design, sales analysis and so on.

If one of these activities is performed poorly it will have an effect on the others.

For ex. If the wrong people are hired efforts to train and motivate them will almost result in

failure.


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B. Role and skills of a sales manager Providing support and resources through empowerment rather than control and

domination. He is a team leader rather than a boss.

Applying flexible motivational tools (E.g. telemarketing, electronic marketing).

Developing detailed understanding of customers business.

Working with other internal departments to achieve customer satisfaction.

Monitoring the ethical behavior of the salespeople.

Keeping up-to-date to the latest technology.

Sales Managers are administrators

• Sales ability is not enough. The best salesperson may not be a sales manager. Also

we cannot conclude that sales producers never make good sales manager.

• In identifying a potential sales managers some important qualities to look for are: A

willingness to share information, an ability to work well in teams, an ego is not

overinflated, must be confident in his ability to lead the group and inspire them, has

a knowledge of selling.

Levels of sales management positions

• Lower- level sales executive

1-sales supervisor, he provides day-to-day supervision, advice and training for a small

number of salespeople in a limited geographical area.

In firms that have adopted a team selling approach the first managerial position is a client

team leader. He coordinates the efforts of a multifunctional team.

2- District sales manager. Manages the activities of sales supervisors or team leaders and

participate in some sales planning and evaluation activities in the district.

• Middle-level sales executives: Regional or divisional sales manager (branch

manager). He is responsible for managing several sales districts..

• Top-level sales executives: Vice president of sales this executive reports to the vice

president of marketing or directly to the president. He is responsible for designing

organization’s long run sales strategies.


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Executive Ladder in Personal Selling

Flatter organization

Many organizations are becoming flatter; they have eliminated some of the levels of

management. These organizations are using cross functional teams to serve their

clients. And they must understand and deal with other functions.

Team leaders replace lower- level management positions and the middle levels are

eliminated as well. So the team leader may report directly to the vice-president of

sales or marketing.

Sales managers have been downsized due to this trend. Sales managers who remain

must supervise more salespeople.

President

Vice president of sales

National sales manager

Regional/divisional sales manager

District sales manager

Sales supervisor

Staff assistants available for advice and support at any step along the ladder.


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Executive Ladder in Team Selling

Sales Force Management Challenges in the 21st Century

1. Selling by executives: important customers expect to interact and negotiate with the

highest levels of the organization. (Top executives of the company are involved in the

sales process)

Using selling team or strategic account management to manage major accounts is a new

trend. The selling team has involved executives at higher levels. Coordinating and

motivating him efforts of these teams is very different from supervising and motivating the

individual sales rep.

(b3d el shrkat lazem ytd5l 7ad mn el kobar 3ashn el deal y5ls btwsl le vice president ynzl bnfso

y5ls el deal m3 el shrka de , tb3n btkon shrka mohma w kbera fe bttlb executives msh

salesperson 3ady & W Kaman )

President

Vice president of marketing

Client-team leader

Distribution logistics specialist

Product engineer

Customer sales/service representative


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2. Customer relationship management (CRM): it refers to software solutions that help

companies manage customer’s information. Salespeople input much of this

information and then use it to expand their relationships with existing customers.

3. Sales force diversity: To remain competitive, sales managers need to focus on the

strengths of women and minorities in personal selling and to be aware of what these

individuals want in sales job.

4. Complex channels of distribution: sales manager manage complex channels of

distribution. They will oversee a hybrid sales force, which includes field sales,

electronic sellers and telemarketing.

Ex. Sony sells its products through three distinct channels. company owned retail

stores with the Sony name, traditional retailers Such as wall mart and best buy , and

online through its company owned web site.. Sony ΄president of consumer sales is

faced with the challenge of creating synergy among these channels

5. An international perspective: Differences in culture and ways of doing business in

foreign countries represent real challenges for sales management.

6. Ethical behavior and social responsibility

End of the chapter one

Always remember

خلي السعي عاده