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What is Sales Management?. Introduction to Personal Selling L2 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.

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What is Sales Management?

Introduction to Personal SellingL2

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.


Personal

Sales

Representatives

Customer

Sales

Managers

Firm

Value

Sales Management


Personal

Sales

Representatives

Sales

Managers

Firm

Sales Management

Customer

Value


Sales Management

Personal

Sales

Representatives

Sales

Managers

  • What are the sales managers goals?

    • Sales

    • Revenues

    • Profits

    • Market Share

    • Controlling internal costs


Sales Management

Personal

Sales

Representatives

Sales

Managers

  • 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


Personal

Sales Reps

Sales

Managers

Sales Management

Overview

Sales

Environment

Supervising

Planning

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.


Personal

Sales Reps

Sales

Managers

Sales Management

  • Past Present

  • Sales Environment

  • International

  • Organizing

  • Future

Overview

Sales

Environment

Supervising

Planning

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 (L9)

    • Industrial Revolution

    • After WWI the need for mass distribution became evident

    • 1950s and the marketing concept


Sales Environment

  • Present (L9)

    • Relational Approach

    • Current Jobs in Sales

    • Opportunities in Sales Management


Sales Environment

  • Organizing the Sales Force (L10)

    • 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 (L11)

    • 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 (L12)

    • 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 (L27)

  • What does the sales organization of the future look like?


Personal

Sales Reps

Sales

Managers

Sales Management

  • Automation

  • Forecasting

  • Financial Planning

  • Quotas

  • Time and Territory

Overview

Sales

Environment

Supervising

Planning

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 (L13)

  • Hardware

    • Type of computers, printers, copiers, phones, etc.

  • Software

    • What type software does the sales force need?


Planning

  • Sales Forecasting (L14)

  • 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 (15)

    • 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 (L16)

    • 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 (L17)

    • 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)


Personal

Sales Reps

Sales

Managers

Sales Management

Overview

Sales

Environment

  • Recruiting

  • Selecting

Supervising

Planning

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.


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 (L18)

    • 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 departmentsRecommendationsInstitutions

      • Professional associationsArmed ForcesClassifieds

      • Employment agenciesUnsolicited applicants

        (Source: Hite and Johnston)


Recruiting

  • Selecting (L19)

  • 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)


Personal

Sales Reps

Sales

Managers

Sales Management

Overview

Sales

Environment

Supervising

Planning

Motivating

Recruiting

2) Developing

current sales

force

Training

  • New sales force

  • 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.


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 (L20)

    • 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 (L21)

    • Everything changes over time so constant training is needed

    • When can advanced training techniques be used?


Personal

Sales Reps

Sales

Managers

Sales Management

Overview

Sales

Environment

Supervising

Planning

Motivating

Recruiting

  • Motivating

  • Compensating

  • Indirect Incentives

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.


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 (L22)

    • Recognition

    • Awards

    • Special communications

      (Source: Hite and Johnston)


Motivating

  • Compensating (L23)

    • Salary

    • Commission

    • Bonus

    • Combinations

      (Source: Hite and Johnston)


Motivating

  • Indirect Incentives (L24)

    • Expenses allowances

    • Sales contests

      • Themes

      • Prizes

      • Advantages

      • Disadvantages

        (Source: Hite and Johnston)


Personal

Sales Reps

Sales

Managers

Sales Management

Overview

Sales

Environment

  • Leadership

  • Supervision

  • Evaluating

Supervising

Planning

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.


Supervising

  • Leadership (L25)

    • Leadership- the process of getting things done through others

    • Leadership Styles

    • Types of leadership

      (Source: Hite and Johnston)

  • Supervision (L25)

    • 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


Personal

Sales Reps

Sales

Managers

Sales Management

1)Types of Sales People

2) Selling Environments

Overview

Sales

Environment

Supervising

Planning

3) Prospecting

4) Preapproach

5) Approach

6) Presentation

7) Objections

8) Closing

9) Follow up

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.


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

Public Relations

Advertising

Personal Selling

Sales Promotion

Direct Marketing


Managing the Marketing Communication Process

Integrated marketing communications (L3)

  • 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)


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