What is Sales Management

What is Sales Management? Introduction to Personal Selling Prepared by: Prof Sameer Kulkarni. Objectives  Provide an introduction to sales management Who does a sales manager manage? Where does sales management fit into the integrated marketing communication process   The Sales Force  Sales Management- is the attainment of sales force goals in an effective and efficient manner through planning, 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, and providing the proper planning and backup support so they can perform their jobs properly.  Sales Management Firm Sales Managers Personal Sales Representatives Customer Value Sales Management Firm Sales Managers Personal Sales Representatives Customer Value Sales Management Sales Managers Personal Sales Representatives  What are the sales managers goals?      Sales Revenues Profits Market Share Controlling internal costs Sales Management Sales Managers  Personal Sales Representatives 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 Management Overview Sales Environment Supervising Planning Sales Managers Motivating Recruiting Personal Sales Reps Training Managing a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. Sales Management Overview Sales Environment Supervising 1) 2) 3) 4) 5) Planning Past Present Sales Environment International Organizing Future Personal Sales Reps Sales Managers Motivating Recruiting Training Managing a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. Sales Environment  Past  Industrial Revolution After WWI the need for mass distribution became evident 1950s and the marketing concept   Sales Environment  Present  Relational Approach Current Jobs in Sales Opportunities in Sales Management   Sales Environment   Organizing the Sales Force Organizing- the assignment of tasks, the grouping of task into departments, and the allocation of resources to departments (Source: Futrell)  Structure of the sales managers job Chain of command  (Source: Hite and Johnston) Sales Environment   The Sales Environment Legal Issues        Consumer protection laws Antitrust laws Unfair trade practices Fraud and misrepresentation Uniform Commercial Code Direct-to-consumer sales Antidiscrimination laws  Ethical Issues      Creating ethical corporate structures Relationships with customers Relationships with competitors Relationships with the firm Relationships with society (Source: Hite and Johnston) Sales Environment  International            Ethnic composition Religious orientation Social class environment Education Gender bias Differences in negotiating styles Differences in decision making Job status and company protocol Social aspects Perceptions of time Personal relationships (Source: Hite and Johnston) Sales Environment   Future What does the sales organization of the future look like? Sales Management Overview Sales Environment 1) 2) 3) 4) 5) Planning Automation Forecasting Financial Planning Quotas Time and Territory Personal Sales Reps Supervising Sales Managers Motivating Recruiting Training Managing a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. 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 of resources needed to attain them (Source: Futrell) Planning  Automating the Sales Force Hardware   Type of computers, printers, copiers, phones, etc.  Software  What type software does the sales force need? Planning   Sales Forecasting How do we forecast sales?         Sales force composite Jury of executive opinion Survey of buyer intentions Trend projections Moving averages Exponential smoothing Regression Econometric models 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 (Source: Hite and Johnston) Planning  Quotas  Sales quota- the specific sales or profit objective a salesperson is expected to achieve (Source: Perreault and McCarthy)       Dollar sales Unit volume Margin Selling effort Product type (Source: Kotler) Other types of quotas  Expense quotas  Profit quotas  Activity quotas (Source: Hite and Johnston) Planning  Time and Territory Management  Optimum time must be spent with those prospects with the greatest 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 (Source: Hite and Johnston) Sales Management Overview Sales Environment 1) Recruiting 2) Selecting Planning Supervising Sales Managers Motivating Recruiting Personal Sales Reps Training Managing a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. 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 (Source: Futrell) Recruiting  Recruiting  The sales manager should recruit individuals whose values and goals match those of the firm (Source: Hoffman et al)  Where do you find sales recruits    Other departments Professional associations Employment agencies Recommendations Armed Forces Unsolicited applicants Institutions Classifieds (Source: Hite and Johnston) Recruiting   Selecting What is the firm looking for?   People that can sell successfully Remain with the company over a long period of time  Problems    Legal and ethical restrictions Firm must maintain a good image Must have a valid job description (Source: Hite and Johnston) Sales Management Overview Sales Environment Supervising Planning Sales Managers Motivating Recruiting Personal Sales Reps 2) Developing current sales force Managing Training 1) New sales force training a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. 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 (Source: Futrell) Training  Training  What is needed for a training program to work?  Provide a job description  Provide product knowledge  Provide company knowledge  Provide market knowledge  Selling techniques Why train  Decreased turnover  Increased sales  Enhanced customer relationships  Decreased costs (Source: Hite and Johnston)  Training  Developing  Everything changes over time so constant training is needed When can advanced training techniques be used?  Sales Management Overview Sales Environment Supervising Planning Sales Managers Motivating Recruiting Personal Sales Reps 1) Motivating 2) Compensating 3) Indirect Incentives Managing Training a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. 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. (Source: Ford, Walker, and Churchill) Motivating  Motivating  Recognition Awards Special communications   (Source: Hite and Johnston) Motivating  Compensating (L23)  Salary Commission Bonus Combinations    (Source: Hite and Johnston) Motivating  Indirect Incentives   Expenses allowances Sales contests     Themes Prizes Advantages Disadvantages Johnston) (Source: Hite and Sales Management 1) Leadership 2) Supervision 3) Evaluating Supervising Overview Sales Environment Planning Sales Managers Motivating Recruiting Personal Sales Reps Training Managing a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. Supervising  Leadership    Leadership- the process of getting things done through others Leadership Styles Types of leadership (Source: Hite and Johnston)  Supervision  Supervision- the actual oversee and directing of the day-to-day activities of salespeople (Source: Futrell) Supervising  Evaluating (L26)   Analysis of sales volume Marketing cost analysis Sales Management Overview Sales Environment 1)Types of Sales People 2) Selling Environments Sales Managers Supervising Planning Personal Sales Reps Motivating Recruiting Training 3) Prospecting 4) Preapproach 5) Approach 6) Presentation 7) Objections 8) Closing 9) Follow up Managing a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly. Definition   Personal Selling (L4) 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 or more prospective customers (Source: Hoffman et al) The Sales Process Prospecting/ Qualifying (L5) Preapproach/ Planning (L6) Identifying Needs Identifying Needs Approach (L7) Presentation (L7) Handling Objections (L8) Closing the Sale (L8) Follow up Types of Communication Marketing Product Promotion Place Price Personal Selling Public Relations Advertising Sales Promotion Direct Marketing 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 a consistent and complete message (Source: Hoffman et al)