SALES MANAGEMENT_ INTRO

LBSIM, New Delhi

 AGENDA

 Evolution of Sales Management

 Nature and Importance of Sales Management

 Roles and Skills of Modern Sales Manager

 Various Sales Management Positions

 Sales Objectives, strategies and Tactics

 Emerging trends in sales management

 Role of Intermediaries
HE SELLS POTATO PEELERS
EVOLUTION OF SALES MANAGEMENT
 CHANGES ………

 The age of information has greatly influenced

personal selling.
 Today, salespeople use a variety of information
technology tools to gather and process
information of value to the customer.
 They recognize that information is a strategic
resource and relationship skills are needed to be
successful.

 Sometimes this reliance on information

technology is referred to as selling 2.0.
Evolution of personal selling: Where are
we today?

Partnership
Business Strategies
Consultative Management
Negotiation Selling
Persuasion
 NATURE OF SALES MANAGEMENT
 Its integration with marketing management
Head-
Marketing

Manager- Manager – Manager – Manager – Manager –

Promotion Market Sales Market Customer
Research Logistics Service

• Relationship Selling

Transactional Value – added Collaborative /

Relationship / Relationship / Partnering
Selling Selling Relationship /
Selling
 WHAT IS SALES MANAGEMENT?

 One definition: “The management of the

personal selling part of a company’s
marketing function.”
 Another definition: “The process of
planning, directing, and controlling of
personal selling, including recruiting,
selecting, equipping, assigning, supervising,
paying, and motivating the personal sales
force.
Nature and role of sales management

 The determination of sales force objective and goals

 Sales force organization, size, territory, and quota
finalization
 Sales forecasting and budgeting
 Sales force selection, recruitment, and training
 Motivating and leading the sales force
 Designing compensation plan and control systems
 Designing career growth plans and building
relationship strategies with key customers
 Varying Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households. • Soft drinks, bread to retail
• Also takes orders. stores.

• Order taker • Inside order taker • Behind the counter in a

(Response selling) •Telemarketing salesperson takes garment shop
orders over telephone • Pharma products’ orders from
• Outside order taker. Also nursing homes
performs other tasks • Food, clothing products’ orders
from retailers
• Order Creators (Sales • Provide information, build • Medical reps. in pharma
support) goodwill, introduce new products industry
• Missionary • Technical information, assistance • Steel, Chemical industries
selling
• Technical selling

• Order-getter • Getting orders from existing and • Automobiles, refrigerators,

(Creative, Problem- new household consumers insurance policies
solving, Consultative • Getting orders from business • Software and business solutions
selling) customers, by solving their
business and technology problems
IMPORTANCE OF PERSONAL SELLING AND
SALES MANAGEMENT
 The only function / department in a company
that generates revenue / income
 The financial results of a firm depend on the
performance of the sales department /
management
 Many salespeople are among the best paid
people in business
 It is one of the fastest and surest routes to the
top management
CHANGING ROLE OF A SALES FORCE
Value creation for customers
 Value = Benefits / Cost

 Give more benefits, or

 Reduce cost

Value addition to the organisation

 Importance to profit

 Attention to terms of payment.

 Give credit to credit-worthy customers

only.
Difference between sales and marketing

Starting
Focus Means Ends
point
Selling and Profits though
Factory Factory promoting sales volume

Selling Concept

Customer Coordinated Profits through

Market
needs marketing customer satisfaction

Marketing Concept
 ROLES AND SKILLS OF A MODERN SALES
MANAGER
Some of the important roles of the modern sales
manager are:
• A member of the strategic management team
• A member of the corporate team to achieve
objectives
• A team leader, working with salespeople
• Managing multiple sales / marketing channels
• Using latest technologies (like CRM/Digital) to build
superior buyer-seller relationships
• Continually updating information on changes in
marketing environment
 SKILLS OF A SUCCESSFUL SALES
MANAGER
 People skills include abilities to
motivate, lead, communicate, coordinate,
team-oriented relationship, and
mentoring
 Managing skills consist of planning,
organizing, controlling and decision
making
 Technical skills include training,
selling, negotiating, problem-solving, and
use of computers
TYPES OF SALES MANAGERS / LEVELS OF
SALES MANAGEMENT POSITIONS
CEO /
President

V. P. Sales / Top-Level Sales Managers /

V. P. Leaders
Marketing

National Sales
Manager Middle-Level Sales Managers

Regional / Zonal / First / Lower Level Sales Managers

Divisional
Sales Managers

District / Branch / Area Sales

Managers

Sales Trainee / Sales Person / Sales

Representative
 TITLES USED IN SELLING TODAY
 Account executive  Strategic accounts
manager
 Account representative  National accounts
 Account manager manager
 Relationship manager  Sales consultant
 Business development
 District representative representative
 Marketing partner  Sales associate
 Regional account  Marketing
manager representative
 Territory manger
 Key accounts manager
 Channel partner
 Medical Representative  Professional Sales
Manager
EMPLOYMENT SETTINGS

 Inside  Outside
salespeople are salespeople
those who travel to meet
perform selling prospects and
activities at the customers in
employer’s their places of
location. business or
residence.
SELLING THROUGH CHANNELS
SELLING THROUGH CHANNELS
SELLING THROUGH CHANNELS
 Emerging trends in sales management

Technology

Customer orientation Emerging trends

Relationship selling
in sales
management
Technology

Global and ethical Diversity

Issues

New selling methods

EMERGING TRENDS IN SALES MANAGEMENT

 Global perspective
 Revolution in technology
 Customer relationship management
(CRM)
 Salesforce diversity
 Team selling approach
 Managing multi-channels
 Ethical and social issues
 Sales professionalism
 E-Selling
SALES PLANNING
LEVEL 1
Top Business Marketing
Management Strategy Strategy
Decisions

Customer
Go-to-Market
LEVEL 2 Relationship
Strategy Management (CRM)
Strategy
Implementation Supply Chain Product Development
Decisions Management (SCM) Management
(PDM)

LEVEL 3
Sales Force Account Relationship
Program Strategy
Decisions
Low Cost Strategy: High Profit Sales Programs:

Vigorous pursuit of cost reductions from  Extensive use of independent sales agents
experience and tight cost control.  Focused on transactional customer
relationships
 Structured so that managers supervised a
large number of salespeople
 Compensation was largely incentive based
 Salespeople were evaluated primarily on their
sales outcome performance

Differentiation strategy: High Profit Sales Programs:

Creating an offering perceived as being  Selective use of independent sales agents
unique leading to high brand loyalty and  Focused on long-term customer relationships
low price sensitivity.  Structured so that managers intensely
supervised a limited number of salespeople
 Compensation was largely salary based
 Salespeople were evaluated on their behaviors
as well as their outcomes.

Niche Strategy: High Profit Sales Programs:

Servicing a target market very well, Experts in the operations and opportunities
focusing all decisions with the target associated with a target market. Otherwise the
market needs in mind, dominating sales firm adopted the program characteristics
with the segment. associated with the appropriate value creation
strategy.

Business Strategies and High Profit Sales Force Programs

 Steps in Developing a Go-to-Market Strategy

1. What is the best way to segment the market?

2. What are the essential activities required by

each segment?

3. What group of go-to-market participants should

perform the essential activities?

4. Which face-to-face selling participants should

be used?

Figure 2-5:
Essential Activities for Go to Market

Interest Creation

Post-Purchase Pre-Purchase

Purchase
 Potential Go-to-Market Participants

Customers and Prospects

Agents Advertising
Direct Sales Tele-
Distributors Integrators Alliances Promotion Internet
Force marketing
Retailers Direct Mail

Direct Indirect

Sales Force Options Non-Sales Force Options

Company
GO-TO-MARKET STRATEGY CHECKLIST
 Determine the market opportunity.
 Decide upon the target for initial market penetration.
 Understand the buying process: Identify the decision makers, approvers,
recommenders, influencers and snipers.
 Understand the business issues for decision makers and develop a value
proposition that resonates with them. Tie them to a compelling event.
 Establish a differentiated position from substitutes and alternatives.
 Prepare a product road and complete product life cycle.
 Document the distribution strategy and corresponding sales process.
 Create an integrated demand creation plan to create qualified
opportunity.
 Develop a comprehensive and methodical demand management plan to
follow-up on qualified opportunities.
 Prepare an implementation plan to ensure the offering is set-up to
perform properly.
 Train the support organization to handle implementation and end user
inquiries.
 Identify partners for creating awareness, interest, consideration,
purchases, implementations and supporting customers.
Comparing Various Go-to-Market Alternatives

Low Cost
per Exposure Advertising

Direct Mail

Internet
Efficiency
Telemarketing

Sales Force

High Sales
Effectiveness
per Exposure
Product Development Management
Sub- processes

Identify customer needs for better solutions

Discovering and designing new product solutions

Developing new solution prototypes

Managing internal departmental priorities and involvement

Designing activities to speed-up development process

Launching new and redesigned offerings

Supply Chain Management Sub - processes

Selecting and managing supplier relationships

Managing inbound logistics

Managing internal logistics

Managing outbound logistics

Designing product assembly and batch manufacturing

Managing process technology

Order, pricing, and terms management

Managing channel partners

Managing product installation and maintenance

Customer Relationship Management
Sub - processes

Identifying high value prospects

Learning about product usage and application

Developing and executing advertising and promotion programs

Developing and executing sales programs

Developing and executing customer service programs

Acquiring and leveraging customer contact information systems

Managing customer contact teams

Enhancing trust and customer loyalty

Cross-selling and upselling of offerings

Sales Force Program
Marketing Objectives, Strategy, and
Strategy Implementation Program

Estimates of sales
potential and Account Relationship Strategy
sales forecast

Desired Selling Actions

and Behaviors

Estimates of sales force

Organizational Structure
size and budget

Competency Development Program

Leadership System
Feedback
 SALES OBJECTIVES, STRATEGIES AND
TACTICS
The main components of planning in a company
are objectives, strategies and tactics. Their
relationship is shown below

Decide / Set Evolve Tactics /

Develop Strategies
Objectives Action Plans

E.G. A company wants to increase sales of

electric motors by 15 percent, as one of the sales
objectives.
 TO ILLUSTRATE THE RELATIONSHIP BETWEEN SALES
OBJECTIVES, STRATEGIES AND TACTICS, CONSIDER:

Sales Goals / Marketing Sales and Distribution Tactics /

Objectives Strategy Strategy Action plans

 Increase  Enter  Identify the countries  Marketing / sales head to get

sales export relevant information
volume markets  Decide distribution  Negotiate and sign agreements in
by 15 channels 3-5 months with intermediaries
percent

 Penetrate  Review and improve  Add channels and members

existing salesforce training,  Train salespeople in deficient
domestic motivation and areas
markets compensation  Train field sales managers in
 Use effective and effective supervision
efficient channels  Link sales volume quotas to the
incentive scheme of the
compensation plan
Sales Goals / Marketing Sales and Distribution Strategy Tactics /
Objectives Strategy Action plans

Reducing Utilise Existing  ABC Focus on A

sales force/
selling
resources
expenses optimally
By

10% Use effective and  Internet…. Treat B & C with

efficient ……
channel
LINKING SALES AND DISTRIBUTION
MANAGEMENT
 Either sales management or distribution
management cannot exist, operate or perform
without each other

 Toachieve the sales goals of sales revenue and

growth, the sales management plans the strategy
and action plans (tactics), and the distribution
management has the role to execute these plans
 ROLE OF DISTRIBUTION MANAGEMENT FOR SOME OF
THE SALES MANAGEMENT ACTIONS / TASKS
Sales Management Actions / Distribution Management Role
Tasks

 Strategy for effective coverage  Follow call plan / beat plan

of markets and outlets  Make customer call productive
 Use multi-channel approach

 Strategy for handling customer  Prompt action at the customer interface level
complaints  If the problem persists, involve senior sales and
service people

 Planning of local advertising  Co-ordination with distribution channels

and sales promotion  Responsibility of execution with distribution
channels
 Expenses are shared between the company and
intermediaries
 SELLING IS A MASTER SKILL

 People spend 40% of time in “nonsales selling”

 Knowledge workers are focused on creating,
using, sharing, and applying knowledge