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

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

Sales Management
Firm

Value

Sales Managers

Customer

Personal Sales Representatives

Sales Management
Sales Manager

Personal Sales Representative

What are the sales managers goals?

Sales Revenues Profits Market Share Controlling internal costs

Sales Management
Sales Manager

Personal Sales Representative

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 Sales Manager Motivating Planning Personal Sales Rep

Supervising Training

Recruiting

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 Sales Manager Motivating Planning 1) Past Present 2) Sales Environment 3) International 4) Organizing 5) Future Personal Sales Rep

Supervising Training

Recruiting

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
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Industrial Revolution After WWI the need for mass distribution became evident 1950s and the marketing concept

Sales Environment
Present
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Relational Approach Current Jobs in Sales Opportunities in Sales Management

Sales Environment
Organizing the Sales Force And designing Organization Structure
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Organizing- the assignment of tasks, the grouping of task into departments, and the allocation of resources to departments Structure of the sales managers job Chain of command

Sales Environment
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Legal Issues Consumer protection laws Antitrust laws Unfair trade practices Fraud and misrepresentation Uniform Commercial Code Direct-to-consumer sales Antidiscrimination law Ethical Issues Creating ethical corporate structures Relationships with customers Relationships with competitors Relationships with the firm Relationships with society

Sales Environment
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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 relationship

Sales Environment
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Future What does the sales organization of the future look like? CSO, Contract Sales Organization Dynamics of Sales Environment is changing

Sales Management
Overview Sales Environment Sales Manager Motivatin g Supervisin g Training Planning 1) Automation 2) Forecasting 3) Financial Planning 4) Quotas 5)Time and Territory Personal Sales Rep

Recruiting

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

Planning
Sales Forecasting/Demand Forecasting How do we forecast sales? Qualitative and Quantitative Sales force composite Jury of executive opinion Survey of buyer intentions Delphi Technique Historical Analogy Test Marketing Trend projections Moving averages Exponential smoothing Regression 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

Planning
Quotas(Targets) Sales quota- the specific sales or profit objective a salesperson is expected to achieve Sales assignment or goals , which are to be achieved in specific time Self Supervisory method of measuring your performance SBO selling by objective
On the basis of Margin , Selling effort and Product type Type of Quotas are -Rupee sales ,Unit Volume, Expense quotas, Profit quotas ,Activity quotas

Planning
Sales Territory Management Sales TerritoryIt is a group of prospects assigned to a sales person, saleteam , distributor, dealer or a marketing organization at a given period of time .Designing is mostly done on the basis of geography AdvantagesEnsures better market coverage , effective utilization of sale force ,efficient distribution of workload, convinient way to evaluate performance, better control over cost, monitor sales quota Objective-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 salespeoples work loads How many salespeople will the territory support Territorys boundaries Optimum way to travel from one prospect to the next

Planning
Automating the Sales Force A Sales Force Automation System (SFA), typically a part of a companys 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 be required. This ensures that sales efforts are not duplicated, reducing the risk of irritating customers Hardware and Software Support Type of computers, printers, copiers, phones, etc.What type software does the sales force need?

Sales Management
Overview Sales Environment Motivating Sales Manager Supervising Training Planning Recruiting 1) Recruiting 2) Selecting Personal Sales Rep

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 peoples and the sales forces best interests into consideration

Recruiting
Recruiting Planning as per Strategic position , Turnover , Job analysis , Job qualification and profile ,Number of persons, Objective-The sales manager should recruit individuals whose values and goals match 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

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

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Sales Management
Overview Sales Environment Motivating Sales Manager Supervising Training Planning Recruiting Recruiting 1)New sales force training 2) Developing current sales force Personal Sales Rep

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

Training
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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 ? To Decrease turnover of employees Increase sales Enhance customer relationships Decrease costs

Training
Developing Everything changes over time so constant training is needed When can advanced training techniques be used?

Sales Management
Overview Sales Environment Motivating Sales Manager Supervising 1) Leadership 2) Supervision 3) Evaluating Training Planning Recruiting Recruiting Personal Sales Rep

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 Supervision Supervision- the actual oversee and directing of the day-to-day activities of salespeople

Supervising
Evaluating
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Analysis of sales volume Marketing cost analysis

Sales Management
1) Motivating 2) Compensating 3) Indirect Incentives Sales Manager Supervising Training Overview Sales Environment Motivating Planning Recruiting Recruiting Personal Sales Rep

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 salespersons 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.

Motivating
Motivating Recognition Awards Special communications

Motivating
Compensating
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Salary Commission Bonus Combinations

Motivating
Indirect Incentives Expenses allowances Sales contests Themes Prizes Advantages Disadvantage

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Sales Management
Overview Sales Environment
Sales Manager

1)Types of SalesPeople 2) Selling Environment 3) Prospecting 4) Preapproach Planning

Personal Sales Rep

Motivating Supervising Training

Recruiting Recruiting

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 Personal Selling- is direct oral communication designed to explain how an individuals or firms goods, services, or ideas fit the needs of one or more prospective customer

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