Overview of Sales Management and the Selling Environment.ppt by hcj

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									Overview of Sales Management and
     the Selling Environment




              Sales and Distribution Management
              Marketing 3345
     Sales Management in the 21st
               Century
n   Building long-term relationships with
    customers
n   Creating more nimble and adaptable sales
    organizational structures
n   Removing functional barriers within the
    organization to create greater job
    ownership and commitment from
    salespeople
      Sales Management in the 21st
                Century

n   Shifting sales management style from
    commanding to coaching
n   Leveraging available technology for sales
    success
n   Integrating salesperson performance
    evaluation to incorporate all activities and
    outcomes
               Key Themes

n   Innovation – thinking outside the box
n   Technology – broad spectrum of tools
    available to salespersons
n   Leadership – capability to make things
    happen
n   Globalization
n   Ethics
                   Innovation
n   Classical selling involved . . .
n   Transaction Selling – a series of transactions,
    each one involving separate organizations
    entering into an independent transaction.
n   The contemporary shift . . .
n   Relationship Selling – narrowing the vendor
    pool, improving efficiencies, working directly
    with customers to solve problems. In
    general, salespeople are asked build
    relationships.
                       Technology
n   Constant accessibility to people/data via
    computers and mobile phones
n   Interactive web presences
n   Just-in-Time (JIT) delivery
    n   Electronic Data Interchange (EDI) in
        manufacturing
    n   Efficient Customer Response (ECR) in retailing
n   Customer Relationship Management Software
    (CRM)
n   Intranets for internal communication
n   Extranets to serve all stakeholders
    Leadership versus Managing
n   Leading                     Managing
    (Mentoring)         n   Control
n   Communicate         n   Supervisor/boss
n   Cheerleader/coach   n   Direct
n   Empower to make
    decisions
Globalization – bridging the culture
                gap
n   View customers in terms of ethnic core
    values
n   Get in sync with customer business
    practices
n   Follow customers’ lead
n   See others honestly
n   Adopt the perspective of other cultures
                    Ethics

n   Customer loyalty is impossible to maintain
    without trust
n   Long term relationships require higher
    ethical standards
n   Federal Sentencing Guidelines designed to
    punish unethical firms
     Sales Management Process

n   The formulation of a sales program
n   The implementation of the sales
    program
n   The evaluation and control of the
    sales program
Environmental Impact on Selling
n   Environmental forces constrain the ability
    to pursue certain marketing strategies or
    activities
n   Environmental variables determine the
    ultimate success or failure of marketing
    strategies
n   Changes in the environment create new
    marketing opportunities
n   Environmental variables are affected by
    marketing activities
        Economic Environment

n   Buyer-seller interactions take place within
    the context of current economic conditions
n   The economy impacts real potential
    demand
n   Global economic conditions are important
n   Competitive structure affects selling
    success
     Legal-Political Environment
n   Many of the changes in society’s
    values reflect new laws and new
    government regulations.
n   Three broad categories of laws are
    relevant:
n   Antitrust
n   Consumer Protection
n   Equal Employment Opportunity
      Technological Environment
n   Changing the way salespeople and sales
    managers do their jobs
n   Influences sales strategies
n   Provides increased opportunities for
    product development
n   Transportation, communications, and data
    processing technologies change sales
    territories, sales rep deployment and sales
    performance evaluation
Social and Cultural Environment
n   Ethics - concerned with development of
    moral standards by which actions and
    situations can be judged.
n   Of concern to sales managers:
    n   Their relationships with salespeople
    n   Interactions between salespeople and their
        customers
n   Managers must influence ethical
    performance by example
n   Ethical standards reflect integrity of the
    firm
               Natural Environment
n   Nature influences demand for products
    n   Weather
    n   Natural disasters
    n   Availability of raw materials
    n   Energy resources
n   Demarketing may result from shortages
    caused by nature
n   Growing social concern about the possible
    negative impact of product and production
    have important implications for marketing
    and sales programs
      Goals/Objectives/Culture

n   Mission and objectives drive
    customer management approaches
n   A well-defined mission + successful
    corporate history + top management
    values = strong corporate culture
                  Personnel

n   Modern sales organizations are highly
    complex and dynamic
n   Often difficult to expand to take
    advantage of growing markets
n   Utilizing outside specialists can help firms
    meet need to expand
          Financial Resources

n   Lack of financial resources can:
    n constrain ability to develop new
      products
    n limit promotional budget

    n limit size of sales force
    Production and Supply Chain
            Capabilities
n   Production capacity
n   Location of production facilities
n   Transportation costs
n   Ability to ensure seamless
    distribution and service after the sale
          Service Capabilities

n   Opportunity for strong competitive
    advantage
n   Difficult for other firms to compete
    for same customers
n   Customers reluctant to switch
    regardless of price
        R&D and Technological
             Capabilities
n   Excellence in design and engineering
    provide major promotional appeal
n   Ability to communicate technological
    sophistication as value-add helps
    prevent over-reliance on price to get
    sales
                    Key Terms
n   transactional selling     •external environment
n   relationship selling         • economic environment
n   leading versus               • legal and political
                                 • environment
n   managing                     • technological environmen
n   sales management             • social and cultural
n   sales management process • environment
     n formulation               • natural environment
     n Implementation         •ethics
     n evaluation and control •demarketing
n   internal (organizational)
    environment
n   corporate culture
n   discontinuous change

								
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