What is Sales Management?

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.

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

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 salespeoples work loads How many salespeople will the territory support Territorys boundaries Optimum way to travel from one prospect to the next
(Source: Hite and Johnston)

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

(Source: Futrell)

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)

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

Developing (L21)

Everything changes over time so constant training is needed

When can advanced training techniques be used?

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.
(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)

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

Definition

Personal Selling (L4)

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 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 (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)