Trade Management Module 5 Sales Management Model Learning Objectives: Forecasting
Trade Management Sales Management Model Structure Customer Contact Process Access (locating qualified customers) Identify (advertising, cold calls, referrals, trade shows) Quantify Persuade Present Close Fulfill Sales person Engagement team
Trade Management
Trade Management Sales Management Model Structure Job Design (Front Office) Income Producers Function of client base Examples: RE Agent, Life Assurance Agent Direct Sales Key account managers Territory reps Indirect Sales Channel sales reps Employee of manufacturer
Trade Management Sales Management Model Structure Job Design (Back Office) Business Development Pre- Post Sales Support (Front & Back Office) Sales Engineer Field Application Engineer Installation Support staff Administrative Assistants ( appointments) Estimators- quotations Research
Trade Management Selling Methods
Trade Management Sales Management Model Structure Resource Deployment ( impacts company profitability) Factors Market size Cost of sales Productivity- sales yield on cost of sales Quality of sales (quantitative and qualitative assessment) valuable customer paying high prices v discount demanding customers requiring a lot of support
Trade Management Sales Management Model Management Sales Talent and Management Sales Talent Recruitment and Selection Onboarding Training Product Sales Process Customer Development and Career progression
Trade Management Sales Management Model Management Sales Talent and Management Talent Management Coaching Management accountabilities Sales campaigns and field programs Customer complaints Legal compliance
Trade Management Sales Management Model General Principles of Measurement Measurement provide evaluative feedback to management initiatives Measurement communicates importance Measurement increases engagement “what measures gets done” Irrelevant measures distract Too many measures confuse Erroneous measures frustrate Compliance measures belittle
Trade Management Sales Management Model Management Performance Management Performance Commitments Job expectations – processes Personal accountabilities Following company values personal development ethics coworker relationships personal demeanour Quotas Compensation base salaries incentives Cost and Sales ROI
Trade Management Sales Management Model Sales Operations & Technologies(Front Office and Back Office) Sales Operations Measurement and Reporting Talent Management Accountability Management Communication Provisioning (Resources) Sales Strategy Planning alignment with marketing
Trade Management Sales Management Model Sales Operations & Technologies(Front Office and Back Office) Technologies CRM Order reporting Customer service status reporting Forecasting systems Account assignment and quota allocation Sales dashboard Expense management system Incentive compensation Knowledge system
Trade Management Sales Management Model Personal Traits of Great Sales Leaders Be a visionary Have high business acumen Be an exceptional manager Be innovative Be courageous Project personal authority Instill commitment
Trade Management Sales Management Model Segments (useful to focus sales management effort) Market/ Customer Segment Product/Solution Segment Channel/Sales Segment Segment Selection Criteria Segment Characteristics- growth rate, potential Product Configuration- mix Buyer Profile Competitor Position
Trade Management Annual Strategic Sale Plan Benefits Goal setting Collaborative Input Field personnel HQ staff Key account holders Communication
Trade Management Sales Focus During Product Growth Main Sections: Phase 1 - Start up Phase 2 - Volume growth Phase 3 - Re-evaluation Phase 4 - Optimization ( Maturity) Sales approach different Move from Product to Customer to Channel focus
Trade Management
Trade Management Sales Forecasting Main Sections: Market Potentials Buying Power Index Qualitative Sales Forecasting Quantitative Sales Forecasting
Trade Management
Trade Management Sales Forecasting Market Potentials:
Trade Management Sales Forecasting Buying Power Index: Index combines estimate of population, income and retail sales to give composite indicator of consumer demand Review of industry use of equipment, estimate life cycle of machinery to potential replacement
Trade Management Sales Forecasting Qualitative Sales Forecasting: Sales Force composite Favoured by industrial concerns Jury of Executive Opinion Fast Allows inclusion of subjective factors : competition, economic, climate, weather and union activity Leading indicators Stock market Sales of houses New building permits
Trade Management Sales Forecasting Quanititative Sales Forecasting: Seasonal adjustments Naïve forecasts Moving averages Exponential smoothing Time-Series regression Y=a+bX Use: Needs historical data Forecasting accuracy needs verifying Common method is MAPE.