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 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 Personal Sales Representatives Sales Managers Customer Firm Value

Sales Management Customer Personal Sales Representatives Sales Managers Firm Value

Sales Management What are the sales managers goals?  Sales  Revenues  Profits  Market Share  Controlling internal costs Personal Sales Representatives Sales Managers

Sales Management 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 Representatives Sales Managers

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. Overview Sales Environment

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)Past Present 2)Sales Environment 3)International 4)Organizing 5)Future Overview Sales Environment

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?

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)Automation 2)Forecasting 3)Financial Planning 4)Quotas 5)Time and Territory Overview Sales Environment

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)

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)Recruiting 2)Selecting Overview Sales Environment

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)

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)New sales force training 2) Developing current sales force Overview Sales Environment

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?

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)Motivating 2)Compensating 3)Indirect Incentives Overview Sales Environment

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)

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)Leadership 2)Supervision 3)Evaluating Overview Sales Environment

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

Sales Management Planning Personal Sales Reps Sales Managers Recruiting Training Motivating Supervising 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. 1)Types of Sales People 2) Selling Environments 3) Prospecting 4) Preapproach 5) Approach 6) Presentation 7) Objections 8) Closing 9) Follow up Overview Sales Environment

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) Presentation (L7) Handling Objections (L8) Closing the Sale (L8) Approach (L7) Follow up Identifying Needs

Types of Communication Promotion Personal Selling Advertising Public Relations Marketing ProductPlacePrice Sales PromotionDirect 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)